What‘s the Difference Between OTT and CTV?

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According to a survey by TvScientific, marketers agree that CTV advertising is the most effective digital channel in their media mix, with 23.6% planning to increase spending on connected TV advertising. 

The study, which gathered feedback from more than 600 marketing professionals in the fourth quarter of 2023, found that 35% of respondents plan to increase their overall ad spending in 2024, and 65% said that sales will increase when Performance TV is integrated with other paid channels such as search and social. Global CTV advertising is expected to grow 22.4% to $25.9 billion in 2024, according to GroupM's forecast.

So what is OTT, and what is CTV?


Definition

OTT (Over-the-Top):

OTT refers to the method of streaming content “over the top” of the internet across any device, a media service offered to viewers via the Internet.

Access: OTT streaming requires a strong internet connection and a device that supports apps or browsers.

Examples: When you watch a show on Netflix, Disney+, or HBO Max via your smartphone, tablet, computer, or smart TV, you’re engaging in OTT streaming.

Content: OTT covers all types of internet-delivered content, regardless of the device.

CTV (Connected TV):

CTV refers specifically to streaming content from the internet on a television screen.

Access: A traditional television connected to devices like Roku, Amazon Fire TV stick, gaming consoles (PlayStation or Xbox), or built-in internet connectivity (smart TV).

Examples: When you stream content directly on your TV screen using platforms like Hulu, YouTube, or Prime Video, you’re utilizing CTV.

Focus: CTV is centered around the TV device itself.

The difference between the two is how you access the content, not what the content is.  


OTT Advertising vs CTV Advertising

  1. Advantages of OTT Advertising:

    • Precise Audience Targeting: OTT allows advertisers to segment audiences based on interests, demographics, and viewing habits. This precision enhances ad relevance and engagement.
    • Real-Time Analytics: Advertisers can monitor trends in real time, enabling better decision-making and campaign optimization.
    • Interactive Ads: Some OTT platforms allow viewers to click through ads for more information or make purchases, making them more effective in the sales funnel.
    • Broad Reach: OTT extends beyond CTV devices, reaching viewers on any internet-connected device (mobile phones, tablets, computers), broadening campaign reach.

  2. Advantages of CTV Advertising:

    • Targeted and Measurable: CTV ads are easier to target and measure compared to linear TV. Advertisers can precisely segment audiences and track performance.
    • Rising Popularity: CTV is the fastest-growing major ad channel. It offers a valuable platform for marketers.
    • High completion rates: Most CTV ads are unskippable and the segments are usually shorter than those on linear TV.

Both CTV ads and OTT ads have clear advantages. The best approach now is a multi-channel strategy that provides viewers with a comprehensive streaming experience. 

OTT Maker is a complete OTT Platform offering many monetization models. Visit our website and get a free trial.

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