CTV vs OTT
As you’ve been learning more about the advantages and worth of connected TV advertising, terms like CTV and OTT may come up in your Google search that you may or may not be familiar with.
According to a recent poll, more than three-quarters of US households own at least one Connected TV device and 59% of advertisers air Connected TV advertising. To put it briefly, more people are becoming aware of the possibility of using TV as a performance marketing platform.
In addition to providing definitions for the most often used terminology in the business, we have also produced a helpful reference on connected TV. However, we are frequently asked about the distinctions between CTV and OTT, so we thought writing a blog article to settle any arguments would be helpful, as you will see below.
What is Connected TV Advertising (CTV)?
Targeting consumers viewing TV shows on an internet-connected device, like a smart TV, game console, or streaming device, is known as CTV advertising. Instead of thinking about connected TV as the content delivery system, consider it as the tool.
In an increasingly fragmented media landscape, linked TV advertising has grown in importance as a route for marketers seeking to reach consumers due to the rise in cord-cutting and the popularity of streaming services.
What Is Over-the-top (OTT) Advertising?
Over-the-top, or OTT, advertising is a technique used to provide video content to internet users. Put another way, it’s talking more about the way the content is delivered than the actual gadget.
In other words, over-the-top (OTT) content is defined as anything that uses an internet connection to offer you with TV programming rather than a cable cord or satellite provided by traditional broadcast providers (thus the name “cord cutters,” which we discuss extensively in our material).
How Do OTT and CTV Differ From One Another?
Although OTT and CTV are frequently used synonymously, there are a few key distinctions between the two, which are listed below:
- The delivery mechanism known as over-the-top (OTT) feeds content to desktop and mobile devices alike.
- The gadget used to watch OTT material is called a connected TV, and it’s typically a smart TV.
There are two methods available for watching material on a connected TV:
- Standard TVs that are linked to streaming media players such as Roku, Apple TV, Amazon Fire Stick, and Chromecast, enable you to watch over-the-top (OTT) and cable television (CTV) programming online.
- Smart TVs are regular TVs with built-in internet access.
Any device with an internet connection, including laptops, desktop computers, tablets, and mobile phones, can view over-the-top (OTT) material on TV. Because TV offers a better viewing (and advertising) experience, we choose to watch this information there.
In case the OTT/CTV definition doesn’t quite make sense to you, consider services like Hulu, Netflix, Amazon Prime Video, and Roku, where all you need is WiFi to stream your preferred TV series.
What Is Over-the-top (OTT) Advertising?
Over-the-top, or OTT, advertising is a technique used to provide video content to internet users. Put another way, it’s talking more about the way the content is delivered than the actual gadget.
In other words, over-the-top (OTT) content is defined as anything that uses an internet connection to offer you with TV programming rather than a cable cord or satellite provided by traditional broadcast providers (thus the name “cord cutters,” which we discuss extensively in our material).
How Do OTT and CTV Differ From One Another?
Although OTT and CTV are frequently used synonymously, there are a few key distinctions between the two, which are listed below:
- The delivery mechanism known as over-the-top (OTT) feeds content to desktop and mobile devices alike.
- The gadget used to watch OTT material is called a connected TV, and it’s typically a smart TV.
There are two methods available for watching material on a connected TV:
- Standard TVs that are linked to streaming media players such as Roku, Apple TV, Amazon Fire Stick, and Chromecast, enable you to watch over-the-top (OTT) and cable television (CTV) programming online.
- Smart TVs are regular TVs with built-in internet access.
Any device with an internet connection, including laptops, desktop computers, tablets, and mobile phones, can view over-the-top (OTT) material on TV. Because TV offers a better viewing (and advertising) experience, we choose to watch this information there.
In case the OTT/CTV definition doesn’t quite make sense to you, consider services like Hulu, Netflix, Amazon Prime Video, and Roku, where all you need is WiFi to stream your preferred TV series.
CTV and OTT Advertising Benefits
Here’s where the real fun begins! CTV and OTT represent a revolution in marketing, not just a fad. A few of the main advantages of this kind of advertising are as follows:
i. Targeted Advertising
Through targeted advertising, businesses can show adverts to particular households according to their viewing preferences, interests, and demographics. Compared to traditional TV advertising, which has less accurate targeting, this makes it more effective.
ii. High Viewability
Compared to other digital advertising formats, ads have a greater viewability rate since they are full-screen and cannot be skipped.
iii. Brand Safety
There is little chance of ad fraud or problems with brand safety in the safe advertising environment provided by OTT and CTV platforms.
iv. Cost-Effectiveness
Because CTV and OTT advertising may reach the exact audience for less money, they are frequently more economical than traditional TV advertising. Advertisers can also choose not to pay for advertisements not seen by the target audience.
V. Increased Engagement
Since viewers are more inclined to watch a whole advertisement when presented on OTT devices, this kind of advertising increases engagement. Beyond that, OTT advertisements can be more engaging for users than TV commercials and interactive.
Vi. Measurable Outcomes
OTT and CTV advertising offers quantifiable outcomes, enabling marketers to monitor the effectiveness of their campaigns and make informed choices. As a result, campaign optimization and ROI (return on investment) are made easy.
Analysis of OTT and CTV Campaigns
The measurement of CTV and OTT advertising has raised specific questions on the viability of viewing performance across the platform and on other devices. Advertisers can reach viewers on OTT platforms with MNTN Performance TV, as we previously said, and then retarget them with advertisements on their secondary devices.
With our patented Verified VisitsTM technology, which integrates with your brand’s sales cycle to identify when someone sees your advertisement and what device they use to convert within their household, MNTN can solve a significant portion of the CTV attribution issue.
In addition, our platform works well with Google Analytics, which is the second best friend of performance marketers after ourselves. With Google Analytics, you can evaluate the performance of your OTT ads alongside all of your other digital marketing channels, such as social media, video, etc.
Challenges with OTT and CTV Advertising
Both CTV and OTT are relative newbies in the realm of digital advertising. Even though these advertising strategies seem promising, you should weigh the drawbacks before investing all your money in them.
The following three difficulties could arise when managing an OTT or CTV campaign:
i. Ad Avoidance
Even while OTT and CTV advertisements may not be able to be skipped, viewers may yet engage in ad avoidance techniques like multitasking or ad-blocking software. For advertisements to attract viewers’ attention, marketers must create engaging and pertinent content.
ii. Fragmented Landscape
Several platforms and streaming services are inside the CTV and OTT ecosystem, each with its methods for delivering content and advertisements. Managing campaigns across several platforms can be difficult without coordinating and integrating with various partners.
iii. Ad Blockers & Fatigue
Some viewers may complain about numerous or repetitive advertisements or employ ad-blocking software. Advertisers must deliver advertising that is pertinent, discrete, and considerate of the viewing experience while also being cautious of the frequency of their messages.
Suitable To Advertise On CTV And OTT?
Marketers are aware of the continued power of TV in spreading brand messages. But as CTVs get more popular, companies are being forced to change and go digital in order to reach their target markets. With aspects of both digital and television, OTT & CTV may be the ideal combination.
It might be challenging to navigate the CTV market because it is still in its infancy. In any case, companies are utilizing all of the advantages and prospects it presents:
- Chief marketing officers and brand ambassadors
- Franchise and business owners
- Selling agency media purchasers
- Owners of marketing agencies searching for a white-label option
The top 12 companies in the CTV and OTT Markets
1. Exclusive streaming content is offered by broadcasters or over-the-top (OTT) platforms (Netflix, Hulu, Disney+, Discovery+).
2. Physical devices that allow streaming through your screens are connected or over-the-top (OTT) devices (Chromecast, Roku, Amazon Fire TV Stick).
3. Smart TVs (Samsung TV, LG TV, TCL TV) come with built-in streaming capabilities.
4. Third-party partners known as Mobile Measurement Partners (MMPs) assist advertisers in precisely tracking campaign results and thwarting fraud.
5. Supply-side platforms (SSPs) are software programs that oversee the publisher’s portion of the advertising exchange, handling tasks including ad space sales, deal optimization, and campaign effectiveness evaluation.
6. Programmatic technologies known as demand-side platforms (DSPs) allow inventory to be provided through a single interface and streamline ad purchasing.
7, Advertisers pay to promote their goods and services.
8. Networks and publishers offer advertising inventory for sale. Broadcasters, OTT services, and CTV equipment are all included in this.
9. On behalf of advertisers, agencies operate as a middleman, managing, optimizing, purchasing, negotiating, consulting, and selling ads.
10. Ad servers make it possible to manage and serve adverts. Sizmek, DoubleClick, and INNOVID are a few examples.
11. The people who watch the videos with the advertisement are known as viewers.
12. Aggregators are businesses that store substantial amounts of inventory on various platforms in order to offer advertising inventory in bulk.
Final Thoughts - CTV vs OTT
Within the dynamic and ever-evolving realm of digital advertising, CTV and OTT play significant roles. Reaching your target audience and identifying your next best consumer base will be easier if you comprehend how the two differ and how they match your marketing objectives.
There are differences between OTT and Connected TV advertising, if there is one thing to learn from this. OTT can be accessed on PC and mobile devices, whereas Connected TV is only available on TV displays. This is the primary distinction.
FAQs: CTV vs OTT
Numerous elements, such as the target market and advertising objectives, affect cost-effectiveness. Advertisers should evaluate each platform’s advantages to make a wise choice.
Traditional broadcasters may adapt by adopting on-demand material, incorporating digital methods, and looking into joint ventures with digital platforms.
Indeed, both platforms have privacy concerns, and there are continuous talks about legal frameworks to secure user data and address these concerns.
On both platforms, data is essential to targeted advertising. To create campaigns that are successful, advertisers use data analytics to comprehend user behaviour and preferences.
By frequently reading trade journals, going to conferences, and actively engaging in conversations within the advertising community, advertisers may stay informed.
Indeed, several gadgets like game consoles and Smart TVs support CTV and OTT apps.
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