Connected TV and Over-The-Top advertising: What's the difference?
In digital advertising precision is paramount. One area where being precise truly pays off is understanding the distinctions between connected TV (CTV) and over-the-top (OTT) advertising. Though intertwined in terminology, their diverse delineations demand understanding. Taking into account their individual elements ensures optimal impact. This will avoid the awkward scenario where an ad meant for a TV device ends up displayed on someone's smartphone instead.
Now let's look at OTT versus CTV and see how they differ.
Defining Connected TV
To comprehend the disparities and similarities between OTT and CTV, we must first establish the meaning of each term individually. Let's start with CTV.
A CTV refers to any television set connected to the internet. This includes smart TVs as well as TV sets that can access the internet through an OTT device, a set-top box, or even a gaming console that doubles as an OTT device.
The term CTV primarily describes the device on which viewers consume video content. Consequently, it is not possible to watch CTV on a phone, laptop, desktop, tablet, or any other digital device, as none of these qualify as televisions.
Understanding Over-The-Top
Now that we have a firm grasp on what connected TV entails (and what it doesn't), let's turn our attention to OTT.
While CTV pertains to a specific device, OTT refers to the method of delivering video content to users. Specifically, OTT involves transmitting video content over the internet rather than through traditional means such as cable, broadcast, or satellite.
OTT vs. CTV: Key Distinctions
OTT advertising can manifest across various digital devices, encompassing mobile phones, tablets, desktops, laptops, and CTVs. The same flexibility cannot be attributed to CTV since, let's face it, how many people do you know that lug around their TV sets?
While CTV and OTT do overlap in certain aspects, it's essential to acknowledge their key discrepancies:
OTT content and ads can be placed on any digital device, including mobile phones, tablets, desktops, laptops, and CTVs.
CTV content and ads can only be viewed on television sets connected to the internet.
Though these terms are occasionally used interchangeably, they possess distinct definitions. It's akin to the relationship between squares and rectangles—every square is a rectangle, but not every rectangle is a square.
The Advantages of CTV and OTT
“Alright, we understand the differences,” you might say as an advertiser, “but why should we utilize CTV and OTT? What advantages do they offer?”
Well, the number of people using CTV devices to consume video content is increasing, as many individuals are transitioning from traditional cable and broadcast providers to OTT alternatives. In essence, both CTV and OTT provide advertisers with the opportunity to connect with audiences precisely when and where they engage with video content.
Both CTV and OTT have access to a variety of inventory sources. These include live TV streaming services like YouTube TV, DirectTV Stream, SlingTV, FuboTV, and FAST TV providers like Pluto TV, Roku, Peacock, and others. It also includes content from Hulu, Disney+, Netflix, etc. Additionally, we have access to app inventory from A&E, CNN, ESPN, HGTV, Lifetime, History, Discovery, and so on.
Need more convincing? Let's look at the numbers:
In 2022, the United States had 225.7 million monthly CTV users, and this number is projected to reach 245.8 million by 2027.
It is estimated that by 2023, 85.3% of US households will own a connected TV device.
In 2022, there were 241.6 million OTT video service users in the US, and this number is forecast to reach 257.4 million by 2027.
Advertisers who grasp the distinctions between CTV and OTT can leverage the remarkable expansion of these platforms, seizing the opportunities they offer. By combining the power of connected TV and over-the-top advertising, you will be able to maximize the visibility of your campaign.