CTV vs. Traditional TV: What SMBs Need to Know
A comprehensive comparison of Connected TV and traditional TV advertising to help SMBs make informed budget allocation decisions.
Deciding where to invest your advertising budget is one of the most critical choices for small and medium businesses. Television advertising remains powerful—but the television landscape has fundamentally changed. Understanding the differences between Connected TV (CTV) and traditional linear TV is essential for making smart, cost-effective decisions.
This comprehensive guide breaks down everything SMBs need to know about both advertising formats, helping you determine which approach—or combination—is right for your business goals and budget.
Understanding the Fundamentals
What is Traditional Linear TV?
Traditional TV advertising refers to commercials broadcast through cable, satellite, or over-the-air channels. Viewers watch programs at scheduled times on specific networks, and ads run during designated commercial breaks. This is the model that's dominated television for over 70 years.
What is Connected TV (CTV)?
Connected TV refers to any television that connects to the internet and streams digital content. This includes smart TVs, devices like Roku and Apple TV, gaming consoles, and streaming services like Hulu, YouTube TV, and Amazon Prime Video. CTV ads appear within streaming content, delivered programmatically based on viewer data and preferences.
The Viewing Landscape in 2025
According to Nielsen's Gauge Report, the balance has shifted dramatically:
Source: Nielsen Gauge, June 2025
Head-to-Head Comparison
1. Cost Differences
Perhaps the most significant factor for SMBs is cost. Here's a detailed breakdown:
| Cost Factor | Traditional TV | Connected TV |
|---|---|---|
| Average CPM | $10 - $36 | $20 - $40 |
| Minimum Budget | $10,000 - $50,000 | $500 - $2,000 |
| Production Costs | $15,000 - $50,000+ | $500 - $5,000 (AI tools available) |
| Contract Length | Typically 3-6 months | No minimum, can run daily |
| Effective Cost per Completed View | Higher (wasted impressions) | Lower (90-95% completion rates) |
Key Insight: While CTV may have higher CPMs, the total cost of entry is dramatically lower, making it accessible to SMBs. Additionally, precision targeting eliminates waste, often resulting in better ROI despite higher per-impression costs.
2. Targeting Capabilities
Targeting is where CTV truly outshines traditional TV—and where SMBs can gain the most advantage.
Traditional TV Targeting
- Broad demographic reach (age, gender)
- DMA (market)-level geography only
- Program-based targeting (sports, news, primetime)
- No behavioral or intent data
- Significant waste reaching non-customers
CTV Targeting
- ZIP code and radius-level geography
- Household-level device targeting
- Behavioral and interest-based segments
- In-market audiences (ready to buy)
- Retargeting website visitors
- Lookalike audience modeling
According to the IAB 2025 Digital Video Report, 84% of marketers believe CTV delivers better targeting than linear TV—a decisive advantage for SMBs with limited budgets who need every impression to count.
3. Measurement & Analytics
The ability to measure results is critical for SMBs operating on tight budgets. Here's how the two formats compare:
Traditional TV Metrics
- • Gross Rating Points (GRPs) - Reach × Frequency
- • Nielsen Ratings - Sample-based estimates
- • Delayed reporting - Days or weeks after airing
- • No attribution - Can't track conversions
- • Limited optimization - Can't adjust mid-campaign
CTV Metrics
- • Completion rates - 90-95% typical
- • Real-time dashboards - Instant performance data
- • Website visit tracking - See who clicked
- • Conversion attribution - Track sales & leads
- • Foot traffic measurement - Physical store visits
- • A/B testing - Test creative variations live
- • Dynamic optimization - Auto-adjust based on performance
4. Ad Formats & Creative Flexibility
| Aspect | Traditional TV | CTV |
|---|---|---|
| Ad Lengths | 15s, 30s, 60s (rigid) | 6s, 15s, 30s, 60s+ (flexible) |
| Interactive Elements | None | QR codes, clickable CTAs, shoppable ads |
| Creative Updates | Difficult, expensive | Instant swaps, A/B testing |
| Dynamic Creative | Not available | Personalized messages per viewer |
| Production Requirements | Broadcast quality, high specs | Digital formats, AI creation tools |
Which Type of SMB Should Choose Which?
The decision between CTV and traditional TV isn't always either/or. Here's guidance based on business type and goals:
Choose CTV When:
- ✓ Local service businesses - Restaurants, salons, gyms, auto services with specific service areas
- ✓ E-commerce brands - Need conversion tracking and attribution to online sales
- ✓ Limited budgets - Under $10,000/month for advertising
- ✓ Niche targeting needed - Specific demographics, interests, or behaviors
- ✓ Performance-focused - Need to prove ROI and optimize based on results
- ✓ Younger audiences - Targeting millennials and Gen Z who stream more than they watch cable
Choose Traditional TV When:
- ✓ Mass awareness campaigns - Broad reach matters more than precision
- ✓ Older demographics - Target audience 55+ who still watch significant cable
- ✓ Local news/sports tie-ins - Live event sponsorships and local programming
- ✓ Brand building - Long-term awareness vs. immediate conversions
- ✓ Large budgets - $25,000+/month where buying power matters
Use Both (Blended Approach) When:
- ✓ Multiple audience segments - Reaching both younger and older demographics
- ✓ Building + converting - Traditional for awareness, CTV for retargeting and conversion
- ✓ Seasonal campaigns - Traditional during peak (holidays, events), CTV year-round
- ✓ Testing and scaling - Prove CTV ROI first, then add traditional for scale
The Verdict: What Makes Sense for Most SMBs
For the majority of small and medium businesses, CTV advertising offers significantly better value and results than traditional TV. Here's why:
Lower Barrier to Entry
Start testing TV advertising with budgets as low as $500-2,000 instead of committing $10,000+ upfront.
Precision Targeting = Less Waste
Only pay to reach potential customers in your service area with relevant interests and demographics.
Measurable ROI
Track exactly which ads drive website visits, leads, and sales—optimize in real-time instead of guessing.
Audience is Already There
With 46% of TV viewing now streaming, you're reaching audiences where they're actually watching.
Start Your CTV Advertising Journey with AdSultans
Our platform makes Connected TV advertising simple and affordable for SMBs. Get started today with transparent pricing, expert support, and proven results.
Key Takeaways
- •CTV now accounts for 46% of TV viewing, surpassing broadcast and cable combined
- •While CTV CPMs are higher ($20-40 vs $10-36), lower minimums and better targeting reduce total cost
- •CTV offers ZIP-code targeting, behavioral segments, and real-time attribution unavailable with traditional TV
- •84% of marketers believe CTV delivers better targeting than linear TV (IAB 2025)
- •Most SMBs benefit more from CTV due to lower budgets, local focus, and need for measurable ROI
Sources & References
- • Nielsen Gauge Report June 2025 - TV Viewing Data
- • IAB 2025 Digital Video Report - CTV Advertising Forecast
- • eMarketer CTV Trends - Industry Analysis
- • MNTN, Vibe.co - CTV Advertising Cost Data 2025