Audience Segmentation for CTV

Audience segmentation for CTV (Connected TV) refers to the process of dividing a streaming audience into defined groups based on data, behavior, or demographics. This enables publishers and advertisers to deliver more relevant ads by targeting specific subsets of viewers. In the CTV ecosystem—including FAST, AVOD, and other streaming platforms—audience segmentation plays a key role in optimizing ad performance and return on investment.

What is Audience Segmentation?

Audience segmentation involves grouping viewers based on shared attributes or behaviors. These segments allow advertisers to reach viewers who are more likely to respond to specific messaging. Segments may be created using:

• Demographic data (age, gender, location)
• Behavioral data (purchasing habits)
• Device-level data (e.g., device type or household)

In CTV advertising, segmentation enables more precise targeting than traditional linear TV, where ads are typically delivered to broad, undifferentiated audiences.

How Audience Segmentation Works in CTV

Audience segments are built by combining data with targeting tools within ad tech platforms. The process typically involves:

1. Data collection: Sources include publisher first-party data, advertiser-supplied data, and third-party data providers.
2. Segment creation: Publishers or advertisers create segments using identifying attributes such as Device IDs, viewing patterns, or campaign engagement history.
3. Audience onboarding: Segments are uploaded into platforms using lists of Device IDs or other identifiers. These are labeled and saved for targeting.
4. Targeting execution: Segments are applied to campaigns—whether direct or programmatic—to reach selected audiences across streaming content.

For example, a publisher may upload a list of Device IDs, label it “Sports Enthusiasts,” and use that segment to deliver ad campaigns focused on sports-related products during relevant programming.

Types of Data Used in Segmentation

Three key data sources are commonly used to segment CTV audiences:

• Publisher First-Party Data: Collected directly from a streaming platform or app (e.g., viewing history, registration info). Often the most accurate and reliable.
• Advertiser First-Party Data: Provided by advertisers or agencies and includes CRM lists, customer behavior, or brand interaction data.
• Third-Party Data: Sourced from data providers and includes broad demographic or behavioral information. Useful for enrichment or scale.

These data types can be combined to refine targeting strategies and create high-value inventory segments.

Audience Segmentation vs. Contextual Advertising

While audience segmentation focuses on who the viewer is, contextual advertising targets based on what content is being watched. For example:

• Audience segmentation might target viewers identified as “Parents with young children.”
• Contextual advertising might serve ads during animated family programming, regardless of the specific viewer.

Combining Audience and Contextual Targeting

In streaming environments, combining both strategies can enhance relevance and effectiveness. For example, targeting a segment of fitness-focused viewers while they are watching health-related content can improve engagement and ad performance.

This hybrid approach allows advertisers to balance scale, precision, and compliance — especially as data privacy regulations evolve.