Originally published in 2024, this article was updated in October 2026 to reflect the latest developments in streaming, connected TV, and advanced TV advertising.
Over the past two decades, TV consumption has undergone a massive digital transformation. Netflix helped kick things off, introducing its streaming service in 2007 (remember when DVDs showed up in the mail? How far we’ve come!). Since then, streaming options have exploded, giving consumers more ways than ever to watch their favorite shows, movies, and live events.
And the shift has been significant. In August 2026, streaming accounted for 49.6% of U.S. TV usage, compared with 18.9% for cable and 17.5% for traditional broadcast TV. Advertising dollars are following that shift, with connected TV advertising spend projected to grow 15.6% in 2026, according to IAB.
Clearly, there’s been a massive shift in how consumers interact with TV content. As such, advertisers need to keep in step with these viewing habits to ensure their TV advertising budgets are reaching the right audiences. However, as more consumers cut the cord and move away from traditional linear TV*, the world of Advanced TV* continues to expand, and keeping up with the many subsets (and acronyms!) of this landscape can be daunting.
The Essential Advanced TV Glossary
Below, we’ve provided an overview of the most important categories and terms to help you navigate the ever-changing world of television advertising.
OTT (Over-the-Top)
OTT refers to video content delivered over the internet, bypassing traditional cable or satellite TV distribution. OTT advertising places ads within eligible streaming content, allowing advertisers to reach audiences on services like Netflix, Hulu, Prime Video, and more.
Connected TV (CTV)
CTV refers to television sets connected to the internet, including smart TVs and traditional TVs connected through devices like Roku, Apple TV, or gaming consoles. As a subset of OTT advertising, CTV specifically refers to ads delivered through streaming content viewed on a television screen, rather than a smartphone, tablet, or computer.
For advertisers, CTV combines the big-screen viewing experience of traditional television with digital capabilities such as audience targeting, campaign measurement, and flexible buying options.
Programmatic TV
Programmatic TV automates the buying and selling of TV ad inventory using software and data, enabling more efficient and informed media buying decisions. Depending on the platform and available inventory, programmatic technology can support audience-based buying, automated bidding, and dynamic ad insertion, which allows different ads to be served during the same program or ad break.
These capabilities give advertisers more flexibility in how they reach audiences, manage campaigns, and optimize performance.
Addressable TV
Addressable TV allows advertisers to deliver different ads to specific households or other addressable audience segments based on available data, such as demographics, interests, or viewing behavior. For example, two households watching the same program could receive different advertisements based on the audiences an advertiser wants to reach.
This allows brands to move beyond broad, one-size-fits-all TV advertising and deliver more relevant messaging to different audience groups, helping make better use of their media budgets.
Free Ad-Supported Streaming (FAST)
FAST delivers free, linear-like television content with ad interruptions, similar to traditional TV but without the burden of subscription fees. Services like Samsung TV Plus, Pluto TV, and The Roku Channel offer viewers a wide range of free programming, from news and entertainment to sports and specialty channels.
FAST has become an increasingly important part of the streaming landscape, giving advertisers another way to reach audiences through familiar, channel-based viewing experiences. As more consumers explore free streaming options, FAST channels remain an opportunity advertisers shouldn’t overlook.
Automatic Content Recognition (ACR) Data
ACR uses technology embedded in supported smart TVs to identify content appearing on the screen, including programming and advertisements across linear and streaming environments. With appropriate permissions and data access, ACR can provide insights into viewing behaviors, content consumption, and potential advertising exposure.
ACR helps advertisers better understand viewing patterns, inform audience strategies, and evaluate campaigns across TV environments. Depending on the data provider and available capabilities, these insights may also support cross-screen advertising and measurement.
Additional Terms to Know
VOD
Video-on-demand is an umbrella term that encompasses video content viewers can select and watch whenever they choose, rather than following a fixed broadcast schedule. You may see subsets such as:
- SVOD (Subscription Video-on-Demand): A subscription-based model offering access to a content library for a recurring fee (e.g., ad-free subscription tiers from Netflix or Disney+).
- AVOD (Advertising-Based Video-on-Demand): An ad-supported model that provides access to on-demand content, either for free or through a lower-cost subscription tier (e.g., Tubi or ad-supported Netflix plans).
- BVOD (Broadcaster Video-on-Demand): On-demand content offered by traditional television broadcasters through their digital platforms (e.g., ABC’s digital viewing options or ITVX in the UK).
- TVOD (Transactional Video-on-Demand): A model where viewers purchase or rent individual titles (e.g., movie rentals through Apple TV or Prime Video).
- PVOD (Premium Video-on-Demand): A transactional model offering early or premium access to select content, often at a higher rental or purchase price (e.g., newly released films available for premium home viewing).
FEPs
Full-Episode Players provide access to professionally produced, full-length television episodes through streaming apps, websites, and other supported digital environments. For advertisers, FEP inventory typically offers opportunities to place ads within premium, professionally produced programming, including commercial breaks.
MVPDs
Multichannel Video Programming Distributors provide consumers with packages of television channels, traditionally through cable or satellite services. Examples include providers such as Comcast Xfinity and DIRECTV’s satellite television service.
vMVPDs
Virtual Multichannel Video Programming Distributors provide bundles of live television channels over the internet, without requiring a traditional cable or satellite subscription. Examples include YouTube TV, Hulu + Live TV, Sling TV, and Philo.
TVE
TV Everywhere refers to services that allow subscribers to access television programming across connected devices, typically by authenticating through a participating pay-TV provider. For example, an eligible cable subscriber may be able to sign into a network’s app or website using their TV provider credentials to watch programming outside of their traditional set-top box.
Reach TV Audiences with Digilant
Ready to harness the full potential of advanced TV advertising for your brand? We’ve got the expertise to help you make the most of it. Let’s chat about how Digilant can help you connect with the right audiences and drive better results across your TV campaigns!
Linear TV – The traditional way of watching television, where programs are broadcast on a fixed schedule by networks and viewers watch at specific times.
Advanced TV – An umbrella term for television advertising approaches that use technology and data to enable more sophisticated targeting, buying, and measurement. This includes connected TV, addressable TV, and other advanced television solutions.