7 CTV Advertising Myths Debunked
Separate fact from fiction about Connected TV advertising. Don't let these common misconceptions keep you from leveraging streaming TV's power.
Connected TV advertising has exploded in popularity, but misconceptions persist—especially among small and medium businesses considering their first campaign. Let's separate fact from fiction and address the seven most common myths preventing SMBs from leveraging this powerful advertising channel.
Myth #1: "CTV Advertising Is Only for Big Brands with Huge Budgets"
The Reality:
CTV advertising is now more accessible than traditional TV for small businesses. According to eMarketer's 2025 CTV report, 42% of CTV advertisers are SMBs, up from just 18% in 2021.
❌ Myth Says:
- • Minimum $50,000+ budgets required
- • Must commit to 6-month contracts
- • Only works for national brands
✓ Truth Is:
- • Start campaigns from $500-2,000
- • Run campaigns by the day or week
- • Hyperlocal targeting for local businesses
Myth #2: "You Need Expensive Hollywood-Quality Production"
The Reality:
While quality matters, you don't need a $50,000 production budget. Modern tools and services have democratized video creation, and authentic, locally-produced ads often outperform overproduced creative for small businesses.
Affordable Production Options:
- • AI Video Tools: Synthesia, Pictory, InVideo create professional ads from $0-500
- • Template Platforms: Animoto, Canva Pro offer customizable TV ad templates for $500-2,000
- • Smartphone + Apps: iPhone 15 Pro shoots 4K video; edit with apps like CapCut or Adobe Express
- • Freelance Creators: Hire experienced videographers on Upwork/Fiverr for $2,000-5,000
Performance Insight: A study by Wistia found that production value has minimal correlation with viewer engagement. Authenticity, clear messaging, and strong CTAs matter far more than expensive production.
Myth #3: "CTV Can't Compete with Social Media Advertising Costs"
The Reality:
While CTV has higher CPMs than social media, effective cost-per-result is often lower due to higher completion rates, better brand recall, and premium audience attention.
| Metric | Social Media | CTV |
|---|---|---|
| Average CPM | $7-15 | $20-40 |
| Completion Rate | 15-30% | 90-95% |
| Brand Recall (24hr) | 38% | 75% |
| Effective Cost Per Completed View | $23-50 | $21-42 |
The key difference: CTV viewers are relaxed and attentive on large screens, while social media users are scrolling quickly on phones. CTV ads get watched, not skipped.
Myth #4: "You Can't Measure CTV ROI Like Digital Advertising"
The Reality:
CTV offers more advanced measurement than traditional TV and rivals digital channels for attribution accuracy. According to the IAB's CTV measurement report, 89% of CTV advertisers can now measure direct conversion attribution.
Website Visit Tracking
Pixel-based attribution shows exactly which exposed households visited your website post-ad-view
Foot Traffic Attribution
Location data partners measure store visits from CTV-exposed households with 4-8% typical visit rates
Conversion Tracking
Track form fills, phone calls, purchases, and other conversions tied directly to CTV exposure
Sales Lift Analysis
Compare sales in exposed vs. control markets to measure incremental revenue from campaigns
Myth #5: "CTV Is Just for Brand Awareness, Not Performance"
The Reality:
While CTV excels at awareness, it's increasingly effective for direct response and conversion goals. Performance marketers are shifting budgets to CTV because it delivers measurable results.
Real Performance Benchmarks:
Modern CTV platforms allow retargeting, conversion optimization, and even dynamic creative that personalizes messages based on viewer data—all classic performance marketing tactics.
Myth #6: "CTV Ads Are Skippable, So They Don't Get Watched"
The Reality:
This confuses CTV (non-skippable) with YouTube (skippable). The vast majority of CTV ads are non-skippable, just like traditional TV commercials. According to Nielsen, CTV completion rates average 90-95%—far higher than any other digital video format.
| Platform | Skippable? | Avg. Completion Rate |
|---|---|---|
| CTV (Hulu, Peacock, etc.) | No | 90-95% |
| YouTube In-Stream | After 5 seconds | 45-65% |
| Facebook/Instagram | Immediately | 15-30% |
Key Point: CTV viewers are in "lean-back" mode watching premium content on big screens. They expect commercial breaks and watch through them—giving your message full attention.
Myth #7: "CTV Targeting Isn't as Precise as Digital Advertising"
The Reality:
CTV targeting rivals—and often surpasses—other digital channels. You're not buying broad TV networks anymore; you're buying household-level impressions with demographic, behavioral, and geographic precision.
✓ Geographic Precision
Target specific ZIP codes, draw radius boundaries, or create custom geographic polygons
✓ Demographic Layering
Age, gender, income, homeownership, family status, education level—all household-level data
✓ Behavioral Targeting
Shopping behaviors, content preferences, lifestyle interests, purchase intent signals
✓ Retargeting Capabilities
Reach people who visited your website, match customer lists, create lookalike audiences
In fact, IAB research shows that 84% of marketers believe CTV delivers better targeting than linear TV, and many report it's comparable to social media precision.
Ready to Experience CTV's Power for Yourself?
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Myths vs. Reality Summary
- •CTV is accessible to SMBs with budgets starting at $500-2,000 (42% of CTV advertisers are SMBs)
- •Professional-quality creative can be produced for $0-2,000 using modern tools and services
- •Effective cost per completed view is competitive with social media despite higher CPMs
- •89% of CTV advertisers can measure direct conversion attribution (IAB)
- •CTV drives performance with 2-5% website visit rates and 4-8% store visit rates
- •90-95% completion rates—CTV ads are non-skippable and get watched
- •Household-level targeting with demographic, behavioral, and geographic precision
Sources & References
- • eMarketer CTV Advertising Report 2025 - SMB Adoption Data
- • IAB Connected TV Report - Measurement & Targeting Capabilities
- • Nielsen Media Research - Completion Rate & Brand Recall Data
- • Wistia Video Engagement Study - Production Value vs. Engagement Analysis
- • Industry benchmarks from MNTN, Vibe.co, PlaceWise Media