How Can Audience Segmentation Make TV Ads Deliver Real Business Results?

Connected TV (CTV) and streaming video offer a rare opportunity: the massive reach of traditional TV, combined with the precision and measurability of digital. Proper audience segmentation on TV transforms broad, expensive impressions into tightly targeted campaigns that drive measurable outcomes like app installs, sales, and high‑value conversions. Starti is built specifically for this shift, turning CTV screens into profit engines by aligning every impression with business outcomes.

What’s the Current State of TV Advertising?

TV advertising is no longer just about buying 30‑second slots and hoping for brand lift. In 2026, the market is defined by fragmentation and performance pressure. Viewers consume content across linear, FAST, AVOD, and subscription streaming services, making it harder than ever to reach the right households consistently. Advertisers are shifting budgets toward CTV, but success depends on understanding who is watching, not just how many people are tuned in.

At the same time, media inflation is real. CPMs for premium CTV inventory continue to rise, while many linear TV spots are still sold primarily on time and demo rather than on actual audience quality or conversion potential. Without precise targeting, brands risk paying high prices for audiences that are irrelevant or fatigued, leading to wasted spend and flat ROAS.

The biggest challenge for performance marketers is reconciling TV’s reach with digital accountability. Many TV and CTV campaigns still rely on broad demographic buckets (e.g., “Men 25–54”) and last‑touch attribution, which obscures which segments truly drive conversions. This lack of granularity makes it difficult to optimize toward true business outcomes, especially for direct‑response and performance‑driven brands.

Why Are Most Brands Struggling with TV Audience Segmentation?

One major pain point is data fragmentation. Viewer data is trapped across multiple walled gardens: smart TV platforms, streaming apps, ISP/partner data, and offline CRM systems. Most brands and agencies operate with outdated or incomplete audience profiles, relying on cookies and third‑party IDs that are disappearing or degrading. This makes it hard to build consistent, accurate audience segments that can be activated across all TV and CTV screens.

Another problem is the lack of closed‑loop measurement. On digital channels, each click, install, or purchase can be tied back to a specific ad placement. In TV, the gap between exposure and conversion is wider, and attribution is often based on probabilistic models or broad reach metrics. Without a clear line from ad exposure to bottom‑line results, it’s impossible to know which segments are profitable and which are simply expensive.

Finally, many TV buying platforms still operate on a traditional CPM or GRP model. Brands pay for impressions or gross ratings, not for installs, sales, or other KPIs. This misalignment of incentives means that even if better targeting is technically possible, the pricing and measurement stack often forces marketers to treat TV as a brand‑awareness channel rather than a performance channel.

How Do Traditional TV Targeting Approaches Fall Short?

Traditional TV planning relies heavily on Nielsen‑style demographics, set‑based carriage, and flighted schedules. While this model works for broad branding, it’s poorly suited for performance campaigns. Targeting by age/gender, daypart, day/weekday, and program type is simply too broad to reliably drive incremental conversions at scale.

Many CTV platforms have improved targeting with basic demographic, behavioral, and contextual options, but they still fall short in practice. For example, a campaign might target “frequent online shoppers” on CTV, but without tying that segment to actual sales data, it’s unclear whether that group outperforms the TV average or is merely overpriced. Moreover, these segments are often managed in siloed environments, making it hard to compare performance across linear, FAST, and pure AVOD.

Most traditional TV buying also lacks real‑time optimization. Once a flight is scheduled, changes are slow and manual: shifting budgets across dayparts, networks, or creatives requires human negotiation and buy‑side adjustments that lag behind actual performance. This delay means that underperforming segments continue to burn budget until the next manual review, while winning segments are under‑allocated.

Why Does True Audience Segmentation on TV Require a New Platform?

Modern TV advertising needs a platform that can ingest first‑ and third‑party data, build precise audience segments, activate them across all CTV/linear inventory, and then measure and optimize toward actual business outcomes in near real time. This means going beyond “targeting” and treating TV as a performance channel where every impression is evaluated on its contribution to installs, purchases, or other KPIs.

A modern CTV platform should unify audience building, planning, buying, and measurement in a single workflow. It must support granular segmentation (by demographics, behaviors, CRM segments, lookalikes, and contextual signals), dynamic creative optimization (DCO), and outcome‑based pricing and attribution. Without this integration, segmentation remains a theoretical exercise rather than a lever for ROAS improvement.

This is where Starti is fundamentally different. Starti is a performance‑focused CTV advertising platform built to turn TV screens into profit engines, not just impression machines. Instead of selling CPMs, Starti aligns its pricing and incentives directly to business outcomes: app installs, conversions, and other actions that move the needle.

How Does Starti Solve the Audience Segmentation Problem on TV?

Starti’s Connected TV platform is designed end‑to‑end for performance marketing, from audience strategy to closed‑loop measurement. It combines proprietary AI, global reach, and an outcome‑driven model to make TV advertising accountable and scalable.

Core capabilities include:

• SmartReach™ AI: Machine learning models that analyze audience signals (demographics, behaviors, contextual signals, and historical performance) to predict which segments are most likely to convert and where they appear across CTV and linear inventory.

• Precision audience targeting: Ability to build and activate segments based on first‑party data (CRM, web, app), 2nd/3rd‑party data, and privacy‑safe identifiers across millions of households.

• Dynamic creative optimization (DCO): Serve tailored creatives (messaging, offers, CTAs) to different segments on TV, increasing relevance and lift.

• Global reach & premium inventory: Access to 200+ million households across 170+ countries, with placements in premium streaming apps, FAST channels, and major smart TV platforms.

• OmniTrack attribution: Multi‑touch, cross‑device measurement that ties TV exposure to installs, purchases, and other KPIs, enabling true segment‑level ROAS analysis.

Starti’s platform is built so that brands pay only for tangible results, not for impressions. This outcome‑based model ensures that audience segmentation is directly tied to business outcomes, not just reach or frequency.

How Does Starti Compare to Traditional TV Buying?

Here is a direct comparison between traditional TV/CTV buying and Starti’s approach:

With Starti, audience segmentation on TV becomes a performance lever, not just a planning step. Segments are continuously evaluated and optimized based on their actual contribution to business KPIs.

How Does Starti’s Audience Segmentation Work – Step by Step?

Implementing precise TV audience segmentation with Starti follows a clear, repeatable process:

1. Define business goals
   Set clear KPIs: app installs, online sales, store visits, or another measurable outcome. This anchors the entire segmentation and measurement strategy.

2. Integrate data sources
   Connect first‑party data (CRM, website, app, offline) to Starti’s platform. Augment with 2nd/3rd‑party data and privacy‑safe signals to build rich audience profiles.

3. Build and test audience segments
   Create segments such as:

   • High‑value customers (CRM)

   • High‑intent lookalikes (modeled from converters)

   • Contextual segments (e.g., “news viewers,” “sports fans”)

   • Behavioral segments (e.g., “frequent app users,” “cross‑device shoppers”)
     Test these segments in small pilots to validate performance.

4. Activate segments across CTV/linear
   Launch campaigns where each segment is matched to optimized creatives (DCO) and placed in high‑quality CTV and linear inventory. Starti’s SmartReach™ AI continuously adjusts where and when each segment appears.

5. Measure and optimize by segment
   Use OmniTrack attribution to see which segments drive the lowest CPA, highest ROAS, and strongest incremental lift. Shift budgets toward the most profitable segments in real time.

6. Scale and iterate
   Scale winning segments and refine underperforming ones. Use learnings from one campaign to improve segmentation and creative strategy in the next.

This process ensures that every TV impression is guided by data and optimized for business outcomes, not just delivery.

What Are 4 Real‑World Use Cases for TV Audience Segmentation?

1. DTC E‑Commerce Brand Scaling Customer Acquisition

• Problem: A DTC brand spends heavily on digital performance channels but hits diminishing returns and rising CAC. TV is attractive for scale, but traditional CTV buys deliver weak ROAS and unclear segment performance.

• Traditional approach: Broad demographic targeting on CTV, static creatives, CPM pricing, last‑click attribution.

• Using Starti: Targets CRM segments (past buyers, cart abandoners) and high‑intent lookalikes. DCO shows tailored creatives (product, offer) by segment. Pricing is outcome‑based (pay only for online sales).

• Key results: Achieved 35% lower CPA vs. traditional CTV and identified two high‑ROAS segments that now receive 60% of the budget.

2. Mobile App Developer Driving App Installs

• Problem: A mobile gaming or finance app needs to scale installs but struggles with competition and high CPIs on mobile. TV offers a complementary channel, but broad CTV buys deliver low install rates and poor tracked users.

• Traditional approach: Demographic targeting (e.g., “Men 18–34”) on CTV, fixed creatives, payment for impressions.

• Using Starti: Builds segments based on device IDs with high app engagement and lookalikes. DCO highlights specific game features or financial benefits by segment. Pricing is based on tracked installs.

• Key results: Reduced CPI by 40%, increased install rate by 25% through better creative/segment matching, and now 70% of TV spend is in high‑value segments.

3. Regional Retailer Driving Local Foot Traffic

• Problem: A regional retailer wants to drive in‑store visits but finds that national TV campaigns are too broad and local linear buys lack precise targeting and measurement.

• Traditional approach: Geo‑targeted linear buys by DMA, demographic targeting, lift studies after the fact.

• Using Starti: Segments by household propensity to shop (CRM, purchase history, lookalikes) and activates them in local CTV and linear inventory. DCO shows store‑specific offers and creatives. Attribution measures foot traffic and offline sales lift.

• Key results: Achieved 2.8x higher in‑store lift in high‑propensity segments vs. control, and now allocates 80% of TV spend to the top 3 performing segments.

4. Global SaaS Company Targeting Enterprise Buyers

• Problem: A B2B SaaS company wants to reach enterprise decision‑makers but struggles with TV relevance and attribution. Traditional TV buys feel like “waving at a big room” with no clear ROI.

• Traditional approach: Broad business/tech programming, generic creatives, CPM pricing, no direct link to pipeline or revenue.

• Using Starti: Builds intent‑based segments using firmographic and behavioral signals, then retargets those households with tailored messaging via DCO. Pricing is tied to MQLs or demo requests.

• Key results: Achieved 50% higher lead quality from TV, reduced CAC by 30% by focusing on high‑intent segments, and TV now contributes 15% of new pipeline.

In each case, Starti’s performance‑driven approach turns TV from a brand channel into a scalable, measurable growth channel by making audience segmentation the core of the strategy.

Why Is Now the Right Time to Fix TV Audience Segmentation?

Three major trends are converging to make precise TV audience segmentation essential in 2026:

• CTV ad spend keeps growing, while linear TV is consolidating. Marketers have more premium CTV inventory to choose from, but competition for high‑quality, converter‑rich audiences is intensifying.

• Privacy changes and deprecation of traditional identifiers are making cookie‑based and ID‑based targeting less reliable. Success now depends on first‑party data strategies and privacy‑safe AI enrichment, not just third‑party segments.

• Advertisers demand more accountability. CFOs and performance teams expect ROAS, not just reach and GRPs. TV and CTV must prove they can drive incremental sales, installs, and pipeline, not just brand awareness.

Platforms built for the old TV world — broad buys, CPM pricing, slow optimization — are increasingly misaligned with these demands. Starti is designed for this new reality: a connected TV platform where audience segmentation is directly tied to business outcomes, and every impression is optimized for performance, not just delivery.

How Can Your Brand Implement This Strategy?

Start by auditing current TV and CTV spending:

• What audience segments are being targeted today?

• How is performance measured by segment?

• Is pricing aligned with business outcomes, or is it purely CPM/GRP based?

Next, identify one or two key performance goals (e.g., app installs, online sales, store visits) and a suitable data source (CRM, web, app, offline). With Starti, those assets can be turned into precisely targeted TV campaigns that pay only for results.

Finally, design a pilot:

• Start with a clear KPI and a small budget.

• Test 2–3 audience segments and compare their CPA/ROAS.

• Use OmniTrack attribution and DCO to refine creative and targeting.

• Scale the winning segments and refine the underperformers.

FAQ

How is audience segmentation on TV different from digital channels?
TV audience segmentation is based on household‑level signals and cross‑device profiles, not individual cookie IDs. It combines demographic, behavioral, contextual, and CRM data to build segments that are then activated across linear, FAST, and CTV inventory. Measurement is multi‑touch and attribution‑based, linking TV exposure to downstream conversions.

Can I use my own CRM and first‑party data for TV segments?
Yes. Starti supports onboarding CRM, web, app, and offline data to build custom segments (e.g., past buyers, high‑value customers, lookalikes). These segments are then activated across CTV and linear inventory with privacy‑safe matching and measurement.

How does TV attribution work when people convert on mobile or desktop?
Starti uses cross‑device, multi‑touch attribution models that tie TV exposure (IP, device ID, or household) to installs, purchases, or other conversions across devices. This allows ROAS to be measured by segment, creative, and placement.

What if I only want to run awareness or brand campaigns?
Starti can still deliver value here by building broad reach segments and optimizing toward reach, frequency, and brand lift KPIs. However, the platform is optimized for performance outcomes, so direct response and lower‑funnel campaigns typically see the strongest ROAS improvements.

How quickly can I see results from better audience segmentation?
With Starti’s AI‑driven optimization and real‑time reporting, clear performance differences between segments are often visible within the first 1–2 weeks of a campaign. Budget can then be reallocated in real time toward the highest‑performing segments.

Sources

1. Industry Insights: How audience data is redefining TV advertising performance

2. TV in 2026: The Future of Advertising’s Most Powerful Channel

3. These Trends Will Define the TV Landscape in 2026, According to Experts

4. Top Channel Marketing Trends for 2026

5. CTV Advertising Trends for 2026

6. Media in Motion: What 2026 Holds for Entertainment Trends

7. Key Insights into the Smart TV Ads Market 2026–2033

8. Ad industry takeaways and priorities for 2026

9. Ad Tech and CTV Experts Forecast 2026’s Biggest Trends