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Advertising on Smart TV "for dummies". Everything you need to know
July 21, 2025
Modern users want everything at once: watch when it's convenient, and only what's really interesting. Media consumption is slipping out of the control of classical television and is completely absorbed into Smart TV and Connected TV. This format has become one of the fastest growing digital advertising channels in the world
What are Smart TV and CTV?
Smart TVs are smart TVs with internet access that allow you to consume multimedia content through applications and a browser.
Connected TV is an internet—connected device that allows you to turn any TV into a Smart TV. CTV includes:
There is no fundamental difference for the advertiser between the two platforms, since the formats on two similar platforms are the same.
Connected TV is an internet—connected device that allows you to turn any TV into a Smart TV. CTV includes:
- Over-the-top devices. Consoles, media players and game consoles like Apple TV, Xbox, PlayStation, e.t.c.
- Set-top boxes. More traditional set-top boxes from cable TV operators.
There is no fundamental difference for the advertiser between the two platforms, since the formats on two similar platforms are the same.
Why is Connected TV becoming an important channel for advertising?
87.5+ million unique viewers connect to content on the UMG Smart TV advertising platform every month. These are users who are ready to receive ads in a comfortable home environment and respond to them.
Imagine an advertisement that cannot be rewound, but which knows for sure that you have recently searched for a coffee maker and gives it to you in prime time. Convenient, isn't it? The combination of the familiar big-screen format with the capabilities of the digital environment are CTV's benefits: accurate targeting, interactivity, and measurability.
UMG is a technology partner with whom you can quickly enter the digital TV space and get real, measurable results. The UMG SmartTV platform provides access to commercial breaks on popular CTV applications in Eastern Europe and around the world.
Imagine an advertisement that cannot be rewound, but which knows for sure that you have recently searched for a coffee maker and gives it to you in prime time. Convenient, isn't it? The combination of the familiar big-screen format with the capabilities of the digital environment are CTV's benefits: accurate targeting, interactivity, and measurability.
UMG is a technology partner with whom you can quickly enter the digital TV space and get real, measurable results. The UMG SmartTV platform provides access to commercial breaks on popular CTV applications in Eastern Europe and around the world.
The benefits of CTV
- Accurate targeting. When activating the device, the user often indicates their age, gender, location, and other information. Some platforms also collect information about their preferences: which genres they watch, which apps they use, how long and at what time they are active. This data allows advertisers to serve ads to those who might actually be interested in them.
- Interactivity. The viewer can not just see the advertisement, but immediately click on the link, fill out the form, order the product, or even try a demo in the advertising window.
- Measurability. Unlike classic TV broadcasts, where it is difficult to know exactly how many people have seen an ad, CTV provides clear statistics: impressions, clicks, screenings, conversions.
- High engagement. Since the user often chooses the content that they will watch, the probability of background viewing is lower. Also, users are often too lazy to look for the remote control when viewing an ad block, which is why they watch the ad to the end.
- Brand-safe space. In most applications on CTV, there is no "sensitive" content that could create negative associations with the advertiser's brand.
Why is CTV growing so fast?
Because it's a win-win for everyone. Viewers receive content on their own terms, so TV lives as a device, but as a format it is dying. Advertisers receive a manageable, measurable, visually appealing, relevant environment for the viewer, and platforms, in turn— receive new budgets.
In other words, CTV is a new "digital showcase" where linear TV budgets are moving, and the showcase itself provides many viewing options for different age groups.
If everything is clear with advertising for the young and middle age groups: they open applications and watch similar online advertising formats there, as on mobile devices, then with an older audience that considers classic TV to be a reliable source of information, traditional TV advertising in the stream is already being replaced by CTV advertising formats.
In other words, CTV is a new "digital showcase" where linear TV budgets are moving, and the showcase itself provides many viewing options for different age groups.
If everything is clear with advertising for the young and middle age groups: they open applications and watch similar online advertising formats there, as on mobile devices, then with an older audience that considers classic TV to be a reliable source of information, traditional TV advertising in the stream is already being replaced by CTV advertising formats.
CTV Formats
Advertising can be non-linear (interactive) or linear (as in terrestrial TV, but with the possibility of targeting). At the same time, Smart TV and CTV enable end-to-end analytics. You can see who saw the video, what actions they performed after, and find a correlation with sales.
Popular formats:
Given the variety of formats, not all advertising ecosystems can offer a complete list of these advertising inserts. UMG, for example, does not provide the opportunity to purchase banners, but compensates for this with the scale of its partner base.
Popular formats:
- Classic InStream. Videos before, during, or after the content (pre/mid/post-roll).
- Multi-roll. A subspecies of InStream that shows multiple videos in a row.
- Interactive advertising. Videos with interaction elements.
- Pause ads. Appear when the viewer pauses the video. Unobtrusive and effective.
- Switch-roll. Showing ads when switching channels.
- Banners. Displaying classic banners in the application interface or OS shell.
Given the variety of formats, not all advertising ecosystems can offer a complete list of these advertising inserts. UMG, for example, does not provide the opportunity to purchase banners, but compensates for this with the scale of its partner base.
What's the catch?
CTV has certain disadvantages for advertisers:
- Fragmentation. You need to purchase inventory on different platforms. But you won't need it if you connect to UMG's largest advertising platform with over 100 partners on Smart TV and CTV.
- Limited interaction. You can't click on the TV, the creative must be adapted to control the remote control.
- Not always clear who is sitting in front of the screen. Can it be a family or a single user? Are children watching TV in the morning, is the mother a housewife in the afternoon, and is the father or the whole family in the evening? It's not always easy to determine.
- The high cost of CPM. High-quality inventory is expensive compared to other types of online advertising. But it's still cheaper than on classic TV with a similar paying audience.
Conclusion
CTV is becoming the new norm for video advertising. Already, the share of viewers who do not use linear TV, but regularly watch Smart TV, exceeds 60% in some developed countries, and young audiences have never seen the "1" button on the remote control.
The future belongs to a hybrid of TV and digital: personalized, targeted, interactive and measurable video broadcasting. Classic TV no longer works alone. And in a world where every screen is becoming smart, it is CTV that is your passport to the screen of the future.
The future belongs to a hybrid of TV and digital: personalized, targeted, interactive and measurable video broadcasting. Classic TV no longer works alone. And in a world where every screen is becoming smart, it is CTV that is your passport to the screen of the future.