The connected TV (CTV) space has long been dominated by YouTube, with its stronghold on living room screens and commanding share of advertising budgets. But a new challenger is emerging: TikTok. With confirmed plans to launch a Smart TV app on platforms like Samsung, Roku, and Fire TV, TikTok is making a bold play for CTV dominance. As the platform evolves from a mobile-first social network into a full-fledged video ecosystem, its expansion into the home entertainment landscape signals a potential industry shake-up.
This shift isn’t just technological—it’s strategic. At the recent Cannes Lions Festival, TikTok’s global product lead David Kaufman declared the living room as “the next battleground for ad spend.” As brands increasingly shift budgets from mobile and linear TV to CTV, TikTok aims to capture this growing demand. But how will it compete against an entrenched leader like YouTube?
Below are four strategic predictions for how TikTok might approach its CTV expansion—ranging from pricing and pre-installation deals to content strategy and measurement credibility.
Prediction 1: A Price-Driven Market Entry
TikTok is likely to enter the CTV market with aggressive pricing, using low CPMs (cost per thousand impressions) to attract advertisers and gain market share quickly.
This approach makes sense given two key market conditions. First, the CTV advertising pie is still expanding. According to eMarketer, U.S. CTV ad spending will grow 16.8% in 2025, reaching $334.8 billion, with over half of brands planning to increase their investment. This growth creates room for new entrants to scale rapidly—even at lower margins.
Second, the competitive landscape remains fragmented. Unlike mobile ecosystems dominated by Google and Apple, CTV platforms like Roku, Samsung Tizen, and Amazon Fire TV offer multiple entry points. This openness allows TikTok to avoid gatekeeper control and leverage volume-based pricing.
Currently, YouTube’s CTV CPM ranges from $20–$40 depending on targeting and format, while traditional streamers like Netflix and Max often charge over $30. In contrast, TikTok has seen declining CPMs since early 2024, suggesting it can offer advertisers more impressions for the same budget.
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By positioning itself as a high-reach, cost-efficient alternative, TikTok can appeal to performance marketers looking for measurable ROI. A sub-$20 CPM strategy would make it an attractive option for brands testing CTV campaigns—especially those already familiar with TikTok’s mobile ad tools.
Over time, as performance data accumulates and trust builds, TikTok can gradually raise prices—transitioning from a volume-driven model to one based on premium audience engagement.
Prediction 2: Pre-Installation Through Revenue Sharing
Winning pre-installed placement on smart TVs is critical for visibility—and TikTok lacks the content library of Netflix or the ecosystem power of Google. So instead of paying for placement or relying on bundling agreements, TikTok may adopt a revenue-sharing model with OEMs (original equipment manufacturers).
Netflix secured prime real estate through early deals that included dedicated remote buttons and homepage slots—essentially buying placement. Google, meanwhile, enforces pre-installation via licensing agreements tied to access to the Play Store.
TikTok doesn’t have either leverage. But it does have a scalable ad business. By offering TV makers a cut of ad revenue generated from impressions within the app—especially if placed on the home screen or via a dedicated button—TikTok can align incentives with manufacturers.
This model isn’t unprecedented. NBCUniversal’s Peacock reached a deal with Roku where a portion of ad inventory (reportedly around 15%) was made available through Roku’s OneView DSP in exchange for prominent placement. The rest remained under NBCU’s control, preserving data ownership and monetization rights.
TikTok could replicate this: share a modest percentage of ad revenue in return for front-row access on devices. This lowers the barrier for OEMs to adopt the app while ensuring TikTok retains control over user experience and data.
With increasing regulatory scrutiny on Google’s bundling practices—such as India’s antitrust ruling allowing OEMs to license Play Store independently—the door is opening for alternative distribution models. If TikTok moves fast, it could secure partnerships with mid-tier manufacturers eager for differentiation.
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Prediction 3: Light-Touch Content Strategy Over Heavy IP Bidding
Unlike YouTube, which has invested heavily in sports, movies, and original programming to boost ARPU (average revenue per user), TikTok is unlikely to jump into expensive content rights battles anytime soon.
Instead, expect a “light copyright” strategy: securing limited rights to repurpose highlights, clips, and behind-the-scenes content rather than full live broadcasts.
Evidence already exists. TikTok holds rights for the 2025 FIFA Club World Cup as the official short-form video hub, focusing on viral moments and fan reactions. It has also extended its content partnership with Major League Soccer (MLS) through 2028, serving as the league’s primary short-form platform.
These deals allow TikTok to leverage premium content without bearing the full cost of live streaming rights. They also feed its core strength: algorithmic curation of snackable videos that drive engagement.
For film and TV content, TikTok may follow YouTube Movies’ early playbook—enabling studios to upload full-length titles while empowering creators to clip and remix scenes. This builds a rich library of user-generated content (UGC) derived from licensed IP, all while minimizing upfront costs.
Such an approach lets TikTok test audience appetite before committing to larger investments. If certain genres or franchises perform well on TV screens, it could pave the way for future mid-tier acquisitions—like regional sports leagues or classic movie collections.
But the overall path will remain lean: short-form first, long-form later.
Prediction 4: Building Trust Through Third-Party Measurement
To win sustained ad spend, TikTok must prove its value—not just claim it. And that means solving one of CTV’s biggest challenges: attribution and measurement transparency.
Brands want to know: Did my ad reach new audiences? How does it compare to YouTube or linear TV? Can I tie exposure to sales?
TikTok is addressing this through partnerships with established measurement firms. Its integration with NielsenONE enables cross-platform reporting that combines TikTok, CTV, and linear TV data in a single dashboard—offering true unduplicated reach metrics.
Additionally, iSpot.tv now supports campaign tracking for TikTok ads, revealing early insights such as 58% of TikTok viewers being unreachable via traditional TV—a compelling argument for incremental reach.
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By aligning with trusted third parties, TikTok can transition from being seen as a “mobile novelty” to a credible CTV player. Verified performance data not only justifies current spend but opens the door for future premium pricing.
Frequently Asked Questions (FAQ)
Q: Is TikTok really building a Smart TV app?
A: Yes. Reports from The Information confirm TikTok is developing a dedicated TV app for major platforms including Samsung, Roku, and Amazon Fire TV.
Q: How does TikTok plan to compete with YouTube on CTV?
A: Through a three-phase strategy: enter with lower ad prices, secure pre-installation via revenue sharing, and build advertiser trust with third-party measurement tools.
Q: Will TikTok start buying live sports rights?
A: Not in the short term. It’s more likely to focus on highlight reels and short-form content partnerships rather than full broadcast rights.
Q: Can short-form videos work on big screens?
A: While unproven at scale, TikTok’s algorithmic feed and immersive viewing experience suggest strong potential—especially when combined with social sharing features.
Q: What role does ad pricing play in TikTok’s CTV strategy?
A: Low initial CPMs will help attract advertisers and generate volume. Once performance is proven, TikTok can gradually increase prices based on verified results.
Q: How important are pre-installed apps for CTV success?
A: Extremely. Over 80% of users engage primarily with pre-loaded apps. Securing home screen placement or remote control buttons significantly boosts discoverability and usage.
In summary, TikTok’s CTV strategy appears to follow a clear trajectory: enter cheaply, prove value through data, then scale profitably. While challenges remain—from viewer habits to measurement credibility—the platform is positioning itself as YouTube’s most disruptive competitor yet in the living room arena.