Connected TV vs. YouTube Ads: What’s Better for Driving Product Sales?
Introduction
Connected TV (CTV) and YouTube have emerged as dominant forces in digital advertising. Digital video content, with its extensive library of on-demand streaming options accessible via connected TV devices, is transforming traditional TV into a platform for on-demand video entertainment and advertising. With 88% of U.S. households now owning a connected TV device like a smart TV or streaming stick (StackAdapt), and YouTube boasting over 2 billion monthly logged-in users (YouTube Official Blog), advertisers are asking: which is better for driving product sales?
This guide breaks down the differences between CTV ads and YouTube ads, from targeting capabilities to ad spend and conversion performance. You’ll get the data, the strategy, and a clear answer to where your marketing dollars will have the most impact.
What Is Connected TV Advertising?
Connected TV refers to internet-connected televisions that allow users to stream video content on demand. Connected TV operates 'over the top' of traditional TV infrastructure, delivering digital video content via the internet. Devices include smart TVs, streaming devices such as Roku, Amazon Fire TV, and Apple TV, as well as game consoles like Xbox or PlayStation. All of these are considered part of the CTV ecosystem and are examples of connected devices. CTV platforms (such as Roku, Fire TV, and Apple TV) offer unique measurement and reporting capabilities for advertisers. Multiple CTV's are often present in a single household, contributing to the dominance of connected TV in media consumption.
Connected TV advertising allows brands to deliver programmatic video ads to these devices, essentially turning traditional TV viewing into a measurable, digital-first experience. Platforms like Pluto TV, Tubi, and Hulu are examples of ad supported streaming tv and ad supported content, which are rapidly growing segments in the streaming landscape.
According to a recent study, CTV ad spending in the U.S. is projected to reach $42.4 billion by 2027, surpassing linear TV ad spend (source). CTV ad spend, connected tv advertising spending, and overall advertising spend and advertising spending are rapidly increasing as media budgets shift from traditional TV to CTV.
That’s a massive shift in media buying behavior. CTV offers advertisers a variety of ad formats and advanced targeting opportunities, often purchased through programmatic buying for greater efficiency. CTV viewers and tv viewers are increasingly engaging with content on OTT platforms and streaming platforms, highlighting the shift from traditional TV.
Key Benefits of CTV Ads:
90–95% ad completion rates (MarketingCharts)
Precise household-level targeting
Seamless viewing experience with non-skippable formats
Access to younger, streaming-first audiences
Platforms like Pluto TV, Tubi, and Hulu are leading ad-supported streaming growth, providing access to viewers who are actively avoiding traditional cable.
What Are YouTube Ads?
YouTube offers several ad formats:
TrueView (skippable) in-stream
Non-skippable pre-roll
Bumper ads (6 seconds)
Overlay and sidebar display ads
YouTube is ideal for mobile and desktop reach and integrates deeply with Google Ads for performance marketing. With over 500 hours of video uploaded every minute, it’s unmatched in scale (Statista).
CTV Viewership Demographics
Connected TV advertising is reaching an increasingly broad and diverse audience, making it a powerful tool in the digital advertising world. With 88% of U.S. households now owning at least one CTV device, the scale of connected TV viewership is undeniable. This widespread adoption is not limited to a single age group, CTV is capturing the attention of viewers across generations.
Younger audiences are leading the charge, with projections that by 2025, 62.6 million millennials and 56.1 million Gen Z viewers in the U.S. will be tuning in to ad supported streaming content on CTV devices. This presents a significant opportunity for advertisers to engage with digital-first consumers who are increasingly shifting away from traditional TV. At the same time, baby boomers are embracing connected TV as well, with 27% of viewers aged 55 and older reporting daily CTV content consumption. This cross-generational appeal means that CTV advertising can effectively reach both established and emerging audience segments.
Income level also plays a role in CTV adoption. Higher-income households are more likely to own multiple smart TV devices and subscribe to a variety of ad supported streaming services, expanding the reach and frequency of connected tv ads. Additionally, CTV viewership is becoming more diverse, with Latin America emerging as a key region for growth and adoption. As connected tv statistics show, the platform’s audience is evolving, offering advertisers access to a wider range of demographic and cultural backgrounds.
For advertisers, understanding these CTV viewership demographics is crucial. Leveraging advanced targeting capabilities and rich audience insights allows for the delivery of personalized, relevant ads to specific audience segments, driving improved campaign performance and stronger brand recall. As viewing habits and connected tv households continue to evolve, staying on top of the latest trends and data is essential for marketers looking to optimize their CTV strategy and remain competitive in the fast-paced digital advertising world.
CTV vs. YouTube: Audience Targeting Capabilities
CTV Targeting:
Household-level data via IP addresses
Demographic, behavioral, and location targeting
Interest and genre-based targeting
Third-party data integrations (e.g., shopping behavior)
YouTube Targeting:
Google Search and YouTube viewing behavior
Custom affinity and in-market audiences
Retargeting based on website visits or past views
Contextual targeting by video content
Verdict:
YouTube offers stronger individual-level targeting, especially for remarketing. But CTV excels at targeting households based on streaming behavior, which is ideal for brand storytelling.
Ad Completion and Engagement Rates
YouTube:
Skippable ads: ~15–30% completion
Non-skippable: 70–90% (but often leads to drop-off)
Bumper ads: Very high completion, low engagement
CTV:
90–95% average completion rate for 15-30 second ads
Lean-back viewing environment
No skip option on most ad-supported platforms
Conclusion:
CTV dominates in completion. If you need full feature-benefit exposure (e.g., for expert-led product videos), CTV delivers more consistent engagement.
Cost Breakdown: CPM, CPV, and ROI
CTV Costs:
CPMs: $20–$40+
Higher AOV and lower return rates due to deeper product education
Used for brand lift and mid-funnel engagement
YouTube Costs:
CPVs: Often below $0.10
Cost-effective testing ground
Excellent for performance campaigns
What We’ve Seen at The Desire Company:
When the same expert-led product video is run on both platforms, CTV consistently drives higher PDP engagement and lower bounce rates, while YouTube excels in retargeting and scaling awareness.
CTV vs. YouTube Ad Formats
| Feature | Connected TV | YouTube |
|---|---|---|
| Skippable | No | Yes (TrueView) |
| Screen Size | Full-screen | Mobile/desktop |
| QR Code Integration | Common—QR codes are increasingly used in CTV ads to drive cross-device engagement and track attribution, especially for seamless user journeys like app downloads | Less common |
| Length Flexibility | 15–60 sec (optimal) | 6 sec–hours (flexible) |
| Interactive Elements | Yes (QR, click-thru via remotes) | Yes (cards, overlays) |
Brand Safety and Ad Fraud
CTV Risks:
Up to 20% of traffic is fraudulent, especially via programmatic open marketplaces (Pixalate)
Some inventory on free apps can be low-quality
Requires strong whitelist/blacklist management
YouTube Risks:
Ad adjacency to user-generated content
Reputation issues from showing up next to controversial videos
Stronger tools now exist (like placement exclusions and Google’s content filters)
Tip: Use premium placements on both platforms and partner with platforms like The Desire Company to ensure content is expert-vetted and brand-safe across the funnel.
Case Study: Expert-Led Product Video Campaign
A leading consumer electronics brand partnered with The Desire Company to create expert-led video content for a new set of noise-cancelling headphones.
On YouTube:
Used skippable in-stream ads
Generated 12% view-through rate
Cost per view: $0.06
Used in remarketing campaigns to drive PDP traffic
On CTV:
Ran 30-second expert demo on Roku, Hulu, and Tubi
93% completion rate
Drove 8x PDP engagement uplift
Return rate dropped by 22%
Result: Combining platforms drove full-funnel lift: awareness + trust-building + conversions.
CTV and YouTube Together: The Winning Funnel Strategy
The most effective brands don’t choose one over the other—they use both strategically. Brands can leverage multiple ad channels, including CTV and YouTube, to maximize reach and effectiveness.
Top of Funnel: YouTube for reach + search intent retargeting
Middle of Funnel: Integrated CTV campaigns for trust, education, and engagement
Bottom of Funnel: YouTube remarketing, PDP videos, email embeds
Pairing both platforms with expert content like this gives shoppers the social proof and confidence they need.
Measuring Performance: KPIs That Matter
YouTube Metrics:
CPV
Click-through rate
Conversions (if using performance campaigns)
Engagement (likes, shares, watch time)
CTV Metrics:
Completion rate
Brand lift studies
PDP engagement and scroll depth
Add-to-cart and conversion attribution (via QR or promo code tracking)
Don’t overlook post-click behavior. At The Desire Company, we measure how expert-led content impacts product discovery, add-to-cart rate, and bounce rate reduction across both platforms.
Future Trends: What’s Next in CTV and YouTube?
QR Code Standardization
Expect more QR overlays in CTV ads driving to PDPs or shoppable landing pages.Retail Media + CTV Integration
Walmart Connect, Amazon, and Target are embedding CTV placements into their own retail ecosystems.AI-Optimized Ad Placement
Campaigns will be adjusted in real time based on machine learning—not just budget pacing.YouTube Shorts
Marketers are repurposing long-form demos into <60 second short-form for mobile audiences.Full-Funnel Video Ecosystems
Brands are finally adopting a centralized video strategy: same messaging, expert, and content scaled across PDP, CTV, YouTube, and ads.
Final Verdict: Which Should You Choose?
If you’re selling products that need trust, education, and real explanation: CTV is your most valuable ad channel.
If you need fast awareness, remarketing, and budget flexibility: YouTube wins on performance and scale.
But together, CTV and YouTube offer a full-funnel powerhouse, especially when powered by expert-led videos that reduce friction and increase conversion.
Want to See Real Results?
At The Desire Company, we’ve helped hundreds of brands improve PDP conversions, reduce return rates, and scale content across CTV, YouTube, and retail media, with one expert at the center of the customer journey.
Average 25% lift in AOV
Up to 12x PDP conversion rates
Completed in just 4–6 weeks
Contact us to discuss your next expert-led video campaign.
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