CTV vs. OTT: What you need to know

The rise of streaming has transformed how we consume media, with Connected TV (CTV) and Over-The-Top (OTT) leading the way. While these terms are often used interchangeably, they represent distinct concepts. Here’s a breakdown to help you understand the differences and their significance, especially for advertisers.

What is CTV?

Connected TV (CTV) refers to any television connected to the internet, allowing access to streaming content through apps. Examples of CTV devices include smart TVs, Roku, and Apple TV.

What Is OTT?

Over-the-Top (OTT) describes how content is delivered over the internet, bypassing traditional cable or satellite. Popular OTT platforms include Netflix, Hulu, and Disney+. OTT content can be viewed on various devices like smartphones, tablets, or CTVs.

Key differences between CTV and OTT

• CTV is the device (TV connected to the internet).
• OTT is the content delivery method (streaming over the internet to any device).

You can watch OTT content on CTV devices, but you can also stream it on mobile phones, tablets, or laptops.

CTV and OTT in Advertising

Both CTV and OTT have opened new avenues for advertisers, but they serve different purposes:

• CTV advertising appears on internet-connected TVs and typically can’t be skipped. Ads are shown in full-screen mode, offering high engagement and visibility.
• OTT advertising can be shown on various devices, including phones, tablets, and computers. These ads can be interactive, allowing users to click on them or engage in other ways.

Benefits of CTV and OTT Advertising

1. Precise Targeting: Ads can be targeted based on user demographics and viewing habits, making them more effective than traditional TV ads.
2. High Viewability: CTV ads are often unskippable and shown in full-screen mode, making them highly visible.
3. Cost-Effective: Both offer more budget-friendly options than traditional TV ads, with better ROI tracking.
4. Engagement: OTT ads can be interactive, while CTV ads hold attention on larger screens.

CTV and OTT Examples

• CTV devices: Smart TVs, Amazon Fire TV, Xbox.
• OTT platforms: Netflix, Hulu, YouTube.

For example, watching Netflix on your smart TV is both a CTV and OTT experience. Watching it on your phone is just OTT.

Final thoughts

While CTV is the device and OTT is the delivery method, both are key players in the streaming and advertising world. As more viewers cut the cord, CTV and OTT advertising have become essential tools for marketers looking to reach engaged audiences across multiple devices.

Are you ready to take your CTV strategy to the next level? Our team is ready to help you achieve extraordinary results in CTV campaigns!