Connected TV advertising business models explained for UK buyers

What to take away

Connected TV (CTV) advertising business models are commercial arrangements deciding who sells the ad slot, who sets the price and who carries the risk. Four dominate the UK market: broadcaster video on demand, ad-funded streaming, curated marketplaces and managed service deals.

Each changes your access, your data and your minimum spend.

How the main models are structured

Broadcaster video on demand

Broadcaster video on demand (BVOD) sells advertising around scheduled programming on ITVX, Channel 4, My5 and STV Player. It follows spot advertising practice, as Introduction to spot advertising sets out.

Buying usually runs through the broadcaster's sales house or a certified platform, with pricing tied to forecast audiences. Inventory is finite, so peak slots sell out early.

Ad-funded streaming

Ad-funded streaming (AVOD) gives viewers free or cheaper access in exchange for watching ads. Platforms such as Netflix's ad tier, Prime Video with ads and Disney+ with ads own the subscriber relationship and the ad server, so they control frequency caps and targeting. Inventory scales with viewing, which means pricing can move quickly.

The appeal is incremental reach beyond broadcast. The trade-off is lighter editorial context and less control over placement. Creative must work without sound and in short formats, so read the IAB UK principles for digital video creative best practice before you build assets.

Our guide to Connected TV advertising demand signals in England tracks the formats buyers are prioritising as budgets shift.

Access, minimums and data by model

Access, pricing and minimums

Broadcaster deals often carry quarterly commitments and agency trading agreements, with indicative minimum spends of £10,000 to £25,000 per campaign. Streaming platforms increasingly offer self-serve buying with low entry points, though premium placements still need a direct conversation. Marketplace models aggregate several publishers behind one contract, which cuts admin but adds a margin.

UK curated marketplaces include Sky Media's AdSmart and The Ozone Project; managed service providers include Finecast, MiQ and Xaxis.

A managed service deal hands planning and optimisation to a specialist, usually for a fee on media spend. For example, a brand paying £8,000 a month for managed service might see £6,400 reach publishers after fees, though rates vary.

That 20% fee is at the top of the typical UK managed service range of 10% to 20%. Indicative managed service minimums are £5,000 to £15,000 per month.

Data, reporting and compliance

Every route reports differently: broadcaster platforms use panel-based audience data, streaming platforms use logged-in user data, and marketplace reporting depends on what each publisher passes back.

All UK CTV advertising falls under the CAP and BCAP advertising codes, enforced by the Advertising Standards Authority. These cover misleading claims, harm and scheduling. That applies to direct or intermediary buys, so ask who is accountable for compliance.

How to choose between them

Match the model to the objective

For broad reach against known UK content, buy broadcaster VOD first. For incremental younger audiences, ad-funded streaming usually delivers. Ask each supplier which objective they are strongest against before splitting budget.

Plan for 2027 pricing

Pricing across all four models depends on supply, audience, targeting and seasonality. Typical 2027 planning ranges: £15 to £30 CPM for broadcaster VOD, £10 to £25 for ad-funded streaming, £12 to £28 for curated marketplaces, £20 to £40 for managed service. Premium live sport sits above these ranges. Set a blended cost per thousand target, not a single model.

Review contracts quarterly: minimum spend clauses are the main barrier to switching. Our Connected TV advertising England market guide for 2027 sets out definitions for briefing a sales house or platform.

Common questions

Which CTV business model is cheapest?

Self-serve ad-funded streaming usually has the lowest entry point, often with no minimum. Broadcaster VOD typically needs £10,000 to £25,000 per campaign, and managed service deals often start at £5,000 to £15,000 per month.

Can I buy across several models at once?

Yes. Many run broadcaster VOD for reach and streaming for incremental audiences. Curated marketplaces consolidate several publishers under one contract.

Who is responsible for ad compliance?

The advertiser remains responsible for the claims made. The CAP and BCAP codes apply across all UK CTV routes, so confirm which party checks creative and scheduling.

Do these models differ across the UK?

Broadcast advertising rules apply UK-wide, but audience data and inventory differ by nation. Buyers targeting Scotland, Wales or Northern Ireland should ask for nation-level reporting.