For years, CTV advertising meant one thing: a 15- or 30-second pre-roll video before your show starts. That's still the dominant format — but late 2025 changed the landscape permanently.
In October 2025, the IAB Tech Lab released the CTV Ad Portfolio, the first industry-wide standardization of six new CTV ad formats: Pause Ads, Menu Ads, Screensaver Ads, In-Scene Ads, Squeezebacks, and Overlays. Standardization means programmatic buying is now possible for the first time — these formats can be transacted through DSPs rather than requiring expensive direct deals with individual platforms.
For small businesses, this opens up formats that were previously reserved for national brands with six-figure budgets.
91%↑
Pause ad brand recall
24-second average dwell time
43%↑
Peacock pause ad site visit lift
vs standard video format
1.94%↑
YouTube shoppable CTV engagement rate (Q2 2025)
up from 1% in Q2 2024
0.004%↓
CTV QR code scan rate (Q4 2025)
down from 0.010% in Q1 2025 — realistic benchmark
When a viewer intentionally pauses their stream, a branded image appears on-screen after a 5-second delay. The viewer stays engaged with the content — they haven't navigated away — so the ad gets their full, unhurried attention.
Performance data (2026):
- 91% brand recall — among the highest of any digital ad format
- 24-second average dwell time — viewers stare at the paused screen while the ad is visible
- 100% viewability — by definition, the viewer chose to pause and is still in front of the screen
- 43% increase in site visits (Peacock data vs. standard video)
- CPM premium: 20–40% above standard pre-roll
Where it's available:
Hulu (launched the format in 2019), Peacock, Amazon Prime Video, Sling TV. Now programmatically transactable via IAB-standardized deals through major DSPs — previously required direct buys with each platform individually.
What the ad looks like:
A full-width static or subtly animated image (not video) with your branding, logo, offer, and a clear call to action. The format requires different creative than pre-roll — think of it as a premium digital billboard that appears at the most attentive moment in the viewing session.
Best use for local businesses:
Time-sensitive offers ("Book this week — 20% off your first visit"), seasonal promotions, and brand reminders work especially well. The 24-second dwell time is long enough for a viewer to read a URL or remember a phone number.
Design pause ads at a 16:9 aspect ratio with your key message and offer in the center-left of the frame — the content thumbnail typically appears center-right, so the left side gets the cleanest visibility.
QR code overlays appear during or at the end of a CTV ad — viewers scan with their phone to visit a landing page, product page, app download, or booking form.
The honest performance data:
This is where you need realistic expectations. CTV QR code scan rates averaged 0.010% in Q1–Q2 2025 and fell to 0.004% in Q4 2025 (eMarketer KPI benchmarks). That's 4 scans per 100,000 impressions — driven by viewer fatigue and the friction of picking up a second device mid-show.
What this means in practice:
At Tubi's CPMs ($20 CPM) with $500/month (25,000 impressions), expect approximately 1–2 QR code scans. QR codes on CTV are not a direct-response volume play — they're a supplemental layer for viewers who are already highly motivated.
Where QR codes work well:
- Amazon "Send to Phone" — Amazon's native interactive format sends a link to the viewer's phone rather than requiring them to frame and scan a code; this frictionless version outperforms standard QR overlays significantly
- YouTube Shopping CTV ads — Pull product images from your Google Merchant Center feed and display as a scannable QR carousel; YouTube reports 100%+ conversion rate improvement vs. standard video
- Promotional offers with a clear, time-limited value — "Scan for 30% off your first order this week" converts better than generic "learn more"
Platforms supporting QR codes:
Amazon, YouTube, Tubi, Roku, Peacock, Hulu — increasingly standard across all major platforms.
Don't build your CTV campaign around QR code conversions as a primary KPI. Use QR codes as an additional layer on top of a campaign that's already working for brand awareness and foot traffic attribution. Measure success by household attribution and visit lift, not scan volume.
Interactive overlays let viewers take action directly within the TV experience — without requiring a second device.
How it works on major platforms:
Amazon interactive ads: The "Send to Phone" button pushes a product directly to the viewer's Amazon app. Location-based interactive video ads (launched at Amazon UnBoxed 2024) let local businesses serve localized content within a single campaign buy. Viewers can add items to their cart or request information via remote control navigation.
Fubo transactional ads: Viewers complete purchases directly within the TV experience using their remote. One of the most advanced commerce-enabled CTV implementations currently live.
YouTube shoppable CTV: Pulls real-time product data from your Google Merchant Center feed and displays as a interactive carousel with QR code. Engagement rate reached 1.94% per impression in Q2 2025 — nearly double the 1% from Q2 2024. The format is growing fast.
Roku native shoppable: Roku Ads Manager offers shoppable formats with direct Shopify integration. Viewers use their Roku remote to interact; purchases or leads captured without leaving the TV interface.
Overall interactive CTV performance:
Interactive formats achieve 5–15% engagement rates versus 0.5–2% for standard CTV video — a 3–10x improvement in direct engagement per impression.
Cost note: Interactive/shoppable formats typically command a 25–50% CPM premium over standard pre-roll. They're worth the premium for e-commerce brands and service businesses with clear, high-value conversion actions (booking a table, requesting a quote, signing up for a trial).
Peacock launched Arrival Ads in 2025 — a full-screen ad takeover that appears when the app opens, before any content loads.
This is the highest-visibility placement in the Peacock ad stack:
- Full screen on TV
- No competing content — the viewer is waiting to start their session
- Typically 6–15 seconds
- Available as part of premium Peacock direct buys (not currently accessible via self-serve)
CPM: Not publicly disclosed; positioned above standard inventory pricing.
Solo Ad: Your brand owns the entire ad break within an episode. No competitors appear before, during, or after your spot. Peacock is the primary platform offering this.
Prime Pod: Your ad runs first in the first ad break of a show — the highest-attention position, before viewer fatigue sets in.
Both formats command significant CPM premiums (2–4x standard rates) and are typically available only via direct NBCU buys. Not accessible for budgets under $25,000.
Format 6: Sequential Storytelling / CTV Retargeting
This is arguably the most powerful CTV strategy for small businesses — and it doesn't require a new format, just smart campaign architecture.
How sequential CTV works:
Chapter 1 — Brand awareness ad served to all targeted households in your zip codes. 15-second spot introducing your business. Focus: reach and frequency.
Chapter 2 — Served only to households that completed Chapter 1. Product/service detail ad. 30-second deeper explanation. Focus: consideration.
Chapter 3 — Served only to households that completed both Chapter 1 and 2. Promotional offer with clear call to action. Focus: conversion.
Cross-device retargeting layer: CTV platforms (The Trade Desk, MNTN, StackAdapt) can extend the retargeting beyond the TV screen — reach the same household on their phone or laptop after they've seen your CTV ad. A viewer watches your 15-second TV ad on Tuesday evening; they see your retargeted display ad on their phone Wednesday morning.
Platforms supporting sequential CTV:
The Trade Desk, MNTN, StackAdapt, Roku Ads Manager. StackAdapt has no stated minimum; MNTN requires $10,000 (retargeting) / $25,000 (prospecting).
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For local businesses with a $1,500–$3,000/month CTV budget, a simple two-step sequence (awareness → offer) consistently outperforms a single always-on campaign. Use Roku Ads Manager at $500 for the awareness layer; add StackAdapt retargeting to mobile for the conversion layer.
The IAB CTV Ad Portfolio: What Standardization Means
In October 2025, IAB Tech Lab published the CTV Ad Portfolio — the first industry-wide standard covering six non-pre-roll CTV ad formats:
| Format | Description | Key Metric |
|---|
| Pause Ad | Appears on voluntary viewer pause, 5-second delay | 91% recall, 24s dwell time |
| Menu Ad | Appears in platform navigation menus | Lower attention but zero ad-load friction |
| Screensaver Ad | Activates during idle/screensaver state | High dwell, low intent signal |
| In-Scene Ad | Brand integration within content (virtual product placement) | Recall lift without interruptive ad break |
| Squeezeback | Content compresses to partial screen; ad fills remaining space | Both content and ad visible simultaneously |
| Overlay Ad | Semi-transparent banner over playing content | Direct response layer on top of video |
Why standardization matters: Before IAB standardization, each platform (Hulu, Peacock, Amazon) had proprietary specs, buying requirements, and measurement for pause ads and overlays. You had to negotiate separate direct deals for each platform. Now these formats can be transacted programmatically through DSPs using standardized creative specs and unified measurement — the same way pre-roll has been bought for the last decade.
For small businesses: pause ads and overlays are now accessible without a $25,000 direct deal. Run them via Adwave or StackAdapt against IAB-standard inventory across multiple platforms in a single programmatic buy.
| Business Type | Best Format | Why |
|---|
| Coffee shop / restaurant | Pause ads + QR (booking link) | High recall, time-sensitive offer, drive foot traffic |
| Hair salon / beauty | Shoppable overlay + sequential | Before/after creative in overlay; retarget website visitors |
| Fitness studio | Sequential storytelling | Longer consideration cycle benefits from awareness → trial offer structure |
| Pet groomer | Pause ads + audio CTA | Strong visual recognition; CTA on pause drives repeat bookings |
| E-commerce (any) | YouTube shoppable CTV + QR | GMC feed integration; 1.94% engagement rate justifies the investment |
Frequently Asked Questions
Q: How much does CTV advertising actually cost for a small business?
You need at least $500/month minimum to get meaningful data. CPMs for pause ads run $18–$30. At $500, you'll get about 20,000 impressions — enough to test. I've seen clients start at $300/month on Roku and get decent local results, but you won't have enough data to optimize.
Q: Can I run CTV ads without a website?
Yes, but you need a landing page. You can use Square Online, Mailchimp's landing page builder, or even a Google Form. Or just use a phone number and a tracking code. A hair salon in Portland used Booksy's booking page — free and took 15 minutes to set up.
Q: How do I know if people are actually seeing my ad?
Platforms report impressions, but those are "served" not "viewed." Pause ads have a 5-second delay before showing — that's built-in viewability. Look at dwell time (average 24 seconds). Also use promo codes and phone tracking. I trust promo codes over platform data every time.
Q: What's the difference between pause ads and screensaver ads?
Pause ads appear when the viewer intentionally pauses. Screensaver ads appear after a period of inactivity (like when someone walks away). Pause ads get 24-second average dwell time and 91% brand recall. Screensaver ads get longer exposure (often over a minute) but lower recall — people might not be looking at the screen. Both are worth testing.
Q: Do I need a TV commercial production?
No. Pause ads are static images. You can design one in Canva in 20 minutes. Screensaver ads can be a simple photo with text. Save your video budget for something else.
Q: How long until I see results?
Usually within 2 weeks if you set up tracking. But I recommend committing to at least one month of consistent spend. The first week is data gathering. Weeks two through four you optimize. A client in Austin saw their first QR scan on day 4, but the real revenue didn't show until day 17.
I've set up CTV campaigns for coffee shops, dog groomers, and bakeries. The difference between a waste of money and a 4x return is almost always the same three things: a clear offer, proper tracking, and a frequency cap. If you skip any of those, you might as well flush the budget down the sink.
I wrote this article because I keep seeing the same mistakes — and they're easy to fix. If you want to walk through your specific business (location, budget, goals) and get a straight answer on whether CTV makes sense for you, I'll tell you honestly. Sometimes the answer is "not yet." Sometimes it's "yes, and here's the exact playbook."
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