How Can Audience Segmentation Unlock Real ROI on Connected TV Advertising?

Connected TV (CTV) is no longer a “nice‑to‑have” channel; it’s a core performance driver for modern brands. Smart audience segmentation on CTV turns undifferentiated impressions into high‑intent views, conversions, and measurable revenue—especially when paired with an outcome‑first platform like Starti that ties every CTV dollar directly to installs, sales, and other business outcomes.

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How big is the CTV opportunity today, and what are marketers really struggling with?

More than 117 million U.S. households now use connected TVs monthly, and that number is growing rapidly as viewers, especially millennials and younger Gen X, spend more time streaming premium content and FAST (Free Ad‑Supported TV) channels. This shift has pulled significant ad budgets from traditional TV into CTV, with a majority of advertisers planning double‑digit percentage increases in CTV spend over the next 12–18 months.

Yet, despite this growth, many campaigns still deliver poor ROI. Fragmentation across platforms, inconsistent measurement, and opaque inventory make it hard to know exactly where ads run and how they perform. A large share of CTV buyers cite “measurement” and “lack of standardization” as top challenges, and many still operate on a CPM (cost‑per‑thousand) model that rewards impressions instead of outcomes.

As a result, brands waste budget on broad, untargeted audiences, face frequency issues (over‑exposure to some viewers, under‑exposure to others), and struggle to prove that CTV actually moves the needle on sales or app installs. This performance gap is what advanced audience segmentation is designed to close.

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Why can’t most brands get meaningful results from CTV today?

1. Fragmented, siloed data across platforms

Most CTV inventory is spread across dozens of streaming publishers, each with its own data schema and measurement approach. Advertisers often lack a unified view of who saw their ads, when, and how they behaved afterward. This makes it extremely difficult to build consistent, scalable audience segments that work across the entire CTV ecosystem.

2. CPM‑based buying that rewards impressions, not outcomes

A huge portion of CTV still sells on CPM, where the goal is to maximize impressions rather than conversions. This model incentivizes reach over precision, leading to broad targeting and low‑quality inventory. Without a clear action‑based pricing model (like cost‑per‑install or cost‑per‑sale), brands can’t reliably tie CTV spend to business results.

3. Poor integration with other channels and CRM

Many CTV campaigns run in isolation, disconnected from CRM, first‑party data, and other digital channels. If a brand’s email, social, and search audiences are being segmented but CTV is still treated as a “brand‑only” channel, it’s nearly impossible to orchestrate a consistent, cross‑channel journey or measure incrementality.

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How are traditional CTV solutions falling short?

Traditional DSPs and agency‑led CTV buying typically rely on:

• Basic demographic and contextual targeting (e.g., “25–34, male, watching sports”).

• Broad interest categories that result in significant overlap and wasted impressions.

• Separate reporting for each platform, making cross‑network optimization slow and manual.

These approaches have several critical limitations:

• Limited granularity: Audiences are often too broad to drive meaningful lift, especially for performance‑oriented brands.

• No outcome alignment: The platform’s success is measured by delivery volume, not by the advertiser’s actual business outcomes (sales, installs, etc.).

• Slow, manual optimization: Manual frequency caps, creative rotation, and platform‑specific rules prevent real‑time learning and adaptation.

For brands that care about ROAS and measurable growth, this traditional model is increasingly inadequate.

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How does audience segmentation on CTV actually work?

Audience segmentation in CTV involves grouping viewers into distinct, actionable buckets based on shared characteristics, then tailoring messaging and bidding strategies to each group. The most effective segmentation layers include:

• Demographic: Age, gender, income, household size.

• Behavioral: Viewing habits, device type, streaming platform usage, content genre preferences.

• Intent‑based: Purchase intent signals, product affinity, past purchase behavior, lookalike modeling.

• CRM‑enabled: First‑party data segments (e.g., current customers, cart abandoners, lapsed buyers) activated directly on CTV.

• Contextual: Content being watched (e.g., sports, cooking, news, movies) to align messaging with viewer mindset.

Once segments are defined, CTV platforms can:

• Adjust bids and frequency caps per segment.

• Serve personalized creatives (via DCO) that match the segment’s interests.

• Measure performance and attribution by segment, not just by platform or campaign.

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What does a modern, outcome‑focused CTV solution look like?

Platforms like Starti combine advanced audience segmentation with an outcomes‑based model specifically for CTV:

• SmartReach™ AI: Uses machine learning to identify high‑intent audiences and continuously refines targeting based on real‑time performance signals.

• Audience Targeting: Granular segments based on demographics, behavior, content context, and first‑party data, including CRM‑based and lookalike audiences.

• Dynamic Creative Optimization (DCO): Automatically personalizes ad creative (message, call‑to‑action, imagery) based on the viewer’s segment and context.

• OmniTrack Attribution: Measures conversions (app installs, sales, leads) across devices and channels, so CTV’s impact is visible and accountable.

• Global Reach & Prime Content Access: Campaigns run across a wide range of premium CTV inventory and popular streaming apps, ensuring quality and scale.

Critically, Starti’s model is built around performance: clients pay only when specific actions happen (installs, sales, etc.), not just for impressions. This aligns platform incentives directly with the advertiser’s business goals.

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How does Starti’s approach compare to traditional CTV buying?

This shift from “buying impressions” to “buying results” is what makes solutions like Starti uniquely effective for performance‑driven brands.

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How can you implement audience segmentation on CTV step by step?

Step 1: Define core audience segments

Start by identifying the most valuable customer groups, such as:

• High‑value customers (high LTV, frequent buyers)

• Cart abandoners

• Lapsed customers

• Lookalikes of converters

• Cold audiences by interest, demographics, or intent proxy

For brands with first‑party data, upload CRM or conversion data to build custom segments and lookalikes.

Step 2: Map segments to CTV capabilities

Map each segment to the appropriate CTV targeting layer:

• Demographic segments → Age, gender, household income

• Behavioral segments → Genre, platform, device, frequency

• Intent/CRM segments → Lookalikes, buyer personas, engagement level

• Contextual segments → Specific content categories (e.g., cooking shows, sports, documentaries)

Step 3: Set up outcome‑based campaigns

Work with a platform like Starti to:

• Define clear KPIs (installs, sales, lead form submissions, etc.).

• Set up outcome‑linked pricing (e.g., fixed CPI or CPA).

• Enable OmniTrack attribution to measure cross‑channel impact.

Step 4: Apply Dynamic Creative Optimization (DCO)

Create multiple creative variants and rules that personalize the ad based on:

• Segment (e.g., existing customer vs. cold prospect)

• Context (e.g., cooking show vs. sports)

• Geo, language, and device

This ensures that the message is relevant in real time.

Step 5: Launch, measure, and optimize

Launch the segmented campaigns and:

• Monitor performance by segment (CPA, ROAS, conversion rate).

• Identify high‑performing segments and reallocate budget.

• Use insights from one segment (e.g., creatives, inventory performance) to refine others.

With Starti, this optimization is driven by AI and a global team operating across time zones, so rules are updated quickly and performance is continuously improving.

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What are 4 real‑world scenarios where audience segmentation on CTV delivers clear value?

Scenario 1: E‑commerce brand scaling direct response

• Problem: An online fashion retailer wants to drive app installs and direct sales from CTV, but previous campaigns only generated branding impact with no clear ROI.

• Traditional practice: Broad demographic targeting, static creatives, CPM pricing, platform‑specific reporting.

• With segmented CTV (via Starti):

  • Segments: New customers, cart abandoners, high‑value buyers, and lookalikes.

  • CRM‑based audience uploaded to Starti’s platform; DCO serves tailored creatives (e.g., abandoned items for cart abandoners).

  • Campaigns run on CTV inventory with outcome pricing (cost‑per‑install and cost‑per‑sale).

• Key results:

  • 39% higher ROAS vs. traditional DSP benchmarks.

  • 33% increase in CTR and 96% video completion rates thanks to DCO.

  • Clear attribution of CTV‑driven sales and installs.

Scenario 2: FinTech app acquiring new users

• Problem: A digital banking app wants to grow its user base in a competitive market but struggles to justify CTV spend without proof of incremental installs.

• Traditional practice: Keyword‑based contextual targeting on generic finance content, one creative for all viewers.

• With segmented CTV (via Starti):

  • Segments: First‑time buyers, credit seekers, high‑income professionals, and lookalikes of existing converters.

  • SmartReach™ AI continuously refines targeting based on over 160B historical bid records.

  • Outcome‑based pricing ensures payment only for actual app installs.

• Key results:

  • 31% lower CPI compared to previous CTV campaigns.

  • Near‑real‑time attribution via OmniTrack, allowing rapid bid and creative adjustments.

  • Demonstrated incremental growth from CTV that justified increased budget allocation.

Scenario 3: Travel brand driving bookings during peak season

• Problem: A travel brand needs to drive hotel and flight bookings from CTV during a busy season, but generic “travel” audiences are too broad and expensive.

• Traditional practice: Category‑based targeting, heavy spending on expensive slots, manual frequency caps.

• With segmented CTV (via Starti):

  • Segments: High‑intent travelers by destination, past travelers, cart abandoners, and lookalikes.

  • Contextual targeting aligned with travel‑related content (travel shows, documentaries).

  • DCO tailors creatives by destination, offer, and device.

• Key results:

  • 28% lower cost per booking from CTV.

  • 22% higher conversion rate on segmented, lookalike audiences.

  • CTV became a measurable, scalable channel in the performance mix, not just a branding play.

Scenario 4: D2C brand rebuilding engagement with lapsed customers

• Problem: A D2C beauty brand sees a decline in repeat purchases and wants to re‑engage lapsed customers via CTV, but mass retargeting is too wasteful.

• Traditional practice: Broad retargeting segment, one retargeting message, no clear outcome linkage.

• With segmented CTV (via Starti):

  • Segments: Lapsed buyers by product category, high‑value churners, and lookalikes of recent buyers.

  • CRM segments activated on CTV; DCO shows personalized offers and product recommendations.

  • Campaigns priced on cost‑per‑sale or CPA, with attribution tied to post‑CTV purchases.

• Key results:

  • 34% higher re‑engagement rate from CTV‑exposed lapsed customers.

  • 41% increase in ROAS compared to previous CTV retargeting.

  • Clear ROI justification to expand CTV into the core retention strategy.

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How will audience segmentation on CTV evolve, and why act now?

AI and machine learning are rapidly becoming the core of CTV targeting, with the majority of marketers already planning to rely on AI for audience modeling and campaign optimization. The next phase of CTV is not just about who you reach, but how well you can predict and influence their behavior in real time.

At the same time, cross‑channel measurement and privacy‑safe data activation are maturing, making it easier to tie CTV to real business outcomes. For brands that want to avoid CTV becoming just another “vanity” channel, now is the time to:

• Shift from broad, impression‑based buying to segmented, outcome‑based campaigns.

• Activate first‑party and CRM data directly on CTV.

• Choose a platform that aligns its incentives with performance, not just delivery.

Starti’s purpose‑built CTV platform is designed exactly for this moment: it uses SmartReach™ AI, audience segmentation, DCO, and OmniTrack attribution to turn CTV into a profit engine, not a cost center. With over 70% of employee incentives tied to client performance, Starti is structured to deliver measurable growth, not just empty impressions.

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How to get started with audience segmentation on CTV?

How do I define effective audience segments for CTV?

Start by analyzing your best customers (demographics, behavior, purchase history) and group them into high‑value, mid‑value, and retention segments. Use these as the foundation for CRM‑based and lookalike segments. For cold audiences, layer in demographic, behavioral, and intent signals that correlate with conversion.

How much first‑party data do I need to start?

Even a modest CRM dataset (e.g., email list, recent converters, or high‑value customers) is enough to build initial segments and lookalikes. Starti’s platform can work with small, high‑quality datasets and expand from there, using AI to find similar high‑intent users across the CTV ecosystem.

How does audience segmentation work across different CTV platforms?

A modern CTV platform like Starti unifies access to multiple streaming publishers and devices, so segments can be activated consistently across the entire CTV inventory. Instead of managing each platform separately, the platform handles cross‑inventory segmentation, bidding, and frequency in one place.

Can I use audience segmentation for both branding and performance goals?

Yes. For performance, use tight segments (e.g., CRM, lookalikes, high‑intent) with DCO and outcome‑based pricing. For branding, use broader, category‑based segments but still segment by context (content type, genre) to ensure relevance. Starti supports both models, letting brands allocate budget by business objective.

How long does it take to see results from segmented CTV campaigns?

Most brands see initial performance signals within 1–2 weeks, especially when using proven segments and DCO. Full optimization and maximum ROAS typically emerge in 4–6 weeks as the AI refines targeting and creative performance. Starti’s continuous optimization and global team help accelerate this learning curve.

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Sources

• eMarketer: “The three forces that will shape CTV’s 2026 growth”

• Premion: “CTV is hitting an inflection point—what to watch in 2026”

• Mountain (MNTN): “Connected TV Statistics: Viewership & Growth Trends (2026)”

• Comscore: “2026 State of Programmatic Report”

• Kivi.tv: “4 reasons why CTV is a good channel for segmentation”

• AI Digital: “CTV Advertising Trends 2026: Marketers Need to Know”

• LinkedIn Business: “A Marketer’s Guide to Targeting Audiences on Connected TV”