What Is CTV Advertising? Difference Between CTV And OTT

Whether or not you believe that Connected TV advertising is the future, it is the present, and it is happening now. Traditional ad-supported broadcasts and cable continue to decline while streaming services rise. 

Despite the fact that CTV advertising is undoubtedly growing, there is still a great deal of misunderstanding among brand marketers and media buyers about what CTV actually entails and what its distinguishing characteristics are.

What is TV advertising? will be explained today. What are its benefits? And the distinction between CTV and OTT. Let’s start!

Definition Of Connected TV (CTV) 

In order to support streaming video content, a connected TV (CTV) is a device that connects to or is integrated into a television. Xbox, PlayStation, Roku, Amazon Fire TV, Apple TV, and other devices fall under the category of CTVs.

The development of CTV and OTT has sparked the “cord-cutting” phenomenon, which refers to the rising trend of consumers canceling their traditional cable and satellite subscriptions in favor of only using these streaming or VOD formats.

Read More: What is OOH Advertising?

Definition Of Over-the-top (OTT) 

Over-the-top (OTT) is the delivery of TV/video content straight from the internet. Users can watch this content on a variety of devices, including a tablet, phone, laptop or desktop, television, etc., without having to sign up for a traditional cable or satellite provider. Streaming or video-on-demand (VOD) delivery methods are used to deliver the video. OTT services of various kinds include Netflix, Hulu, and Amazon Prime. Additionally, media companies and networks are introducing their own OTT services, such as Disney+ and NBC’s Peacock. Read More:

What is OTT Advertising?

What Should CTV Do To Truly Be Interactive?

For CTV to be really interactive, or bidirectional, an SDK (software development kit or a collection of software development tools in one installable package) needs to be embedded on hardware solutions (e.g. Roku devices) as well as in dozens of publishers, “Stephanie Geno, Chief Marketing Officer, at Innovid tells Portada.
Geno adds that “a really interactive industry first execution piloted on the Apple TV App of the above cited Pringles 2019 Super Bowl ad featured an interactive overlay that allowed viewers to swipe through an engagement carousel featuring various flavor stacking combinations. Only advertisements were played on the carousel.” 


Together, DSP The Trade Desk and SSP Magnite looked at every place where interactive SDKs are available in the US in order to make CTV 100% interactive. The three companies joined forces to develop a single market that will drive sophisticated creative buying programmatically throughout the connected TV ecosystem.
Through direct integrations with more than 50 publisher apps, Innovid’s proprietary software development kit (SDK) powers personalized and interactive experiences in CTV. With the help of the SDK, brands can benefit from a 360-degree approach to connecting with customers across channels, which is at the heart of Innovid’s offering.

What Is CTV In Marketing & Its Advantages?

CTV advertising is skippable online advertising that is directed at relevant content channels and/or audience segments. Instead of the banner display ads that occasionally appear on CTV devices, CTV inventory is high-quality, professionally produced television content. Reaching TV viewers that advertisers can’t reach without traditional TV commercials is one of the main advantages of connected TV advertising. Some others include:

better targeting abilities By using Connected TV audience targeting, you can be certain that your marketing budget is going to your most valuable and targeted customers.

Measurable Results: Our programmatic platform enables you to track video completion rates and other traditional and digital metrics to evaluate the success of your connected TV campaigns. You can also view the full customer journey from watching a TV ad to making a purchase using this tool.

Growing Audience: targets millennials and the growing percentage of people who do not have cable TV and are actively considering “cutting the chord.”

What Is OTT In Marketing & Its Advantages?

OTT TV was initially focused on delivering content over the internet through Netflix, Hulu, and Amazon, but today there are countless streaming services that target specific niches, such as episode content, short-form content like local news or how-to tutorials, live streaming, video on demand, and linear television. As viewers of all ages use OTT services, marketers are finding new ways to target and align with important audiences. Using clever brand messages, advertisers can now target particular demographics. Benefits include:

Brand Safety  ads delivered during live Top-tier networks and popular content are reached via TV or on demand.

100% view-ability – All advertisements run in full-screen mode, which eliminates below-the-fold advertisements from other media vehicles and ensures that 100% of the screen’s pixels are visible.

Near Perfect Ad Completion – A 98% completion rate indicates that viewers are watching the advertisements all the way through.

Retargeting OTT & CTV Viewers – All of your OTT and CTV viewers’ devices, such as laptops, tablets, and mobile phones, can be retargeted. Throughout the selection process, keep your message top of mind.

What Distinguishes CTV, OTT, And Linear TV?

Although connected TV (CTV) and over-the-top (OTT) devices are two very popular ways to access TV/video content, they can be easily confused with one another. And adding linear TV (traditional TV) further muddies the situation. Here are some hints to assist you in comprehending the distinctions between connected TV (CTV), over-the-top (OTT), and linear TV so that you can build your advertising strategy while speaking everyone else’s language.

  • The term “OTT” refers to the process of streaming or downloading TV and video content online in addition to, or “over the top of,” the traditional network providers.
  • A customer watches TV and video content online using a CTV, which is a device with an internet connection. It might be an internet-connected smart TV, gaming console, or another gadget. OTT content can be streamed using the device, but the terms are not equivalent.
  • When a viewer watches a scheduled TV program as it airs on its original channel, they are using a traditional system known as linear TV. The viewer has the option of using an antenna or paying for a cable or satellite subscription to view content.

How To Buy CTV?

How does the purchasing process work at CTV Advertising? Historically, The upfront process has been used to purchase the majority of CTV. And then activated programmatically.  But programmatic real-time bidding (RTB) has helped CTV advertising grow over the past six months. CPMs (Cost per thousand) for CTV advertising will tend to be between 2 and 3 times higher than traditional linear TV ads, but overall budgets will be significantly lower as CTV allows advertisers to move away from a blanket approach to much more customized media buy and, thereby, eliminate waste.

Author: Ada Parker

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