When it comes to spending marketing dollars, you may have some questions about what next-generation video content you should focus on. Both over-the-top (OTT) and connected television (CTV) ads can be effective and powerful–but they are quite different.
Not sure what the difference is? You’re in the right place. In this article, we’ll take a look at each type of advertising and video content in-depth, and give some examples of each one. Let’s begin.
Over-The-Top TV (OTT)
OTT stands for “over-the-top,” and it’s used to refer to video content that is not served to customers through a traditional television system–such as cable or satellite.
In other words, OTT TV is any content that is separated from a traditional TV subscriber, and delivered directly over the internet. OTT services can typically be used on almost any device with an internet connection, such as a laptop, tablet, connected smart TV, set-top box, or a device like the Apple TV, Amazon Fire TV, or Roku.
Each OTT service has a different type of subscription. Netflix, for example, does not run any ads, but charges a subscription fee. However, other services like Hulu often include ads with their content, as do some free OTT services like Crunchyroll, an anime-focused OTT service.
Video advertisements shown during OTT content are the most popular method of advertising on OTT services–and allow companies to get in front of thousands of subscribers at a relatively low cost, compared to traditional cable or satellite TV. In addition, some OTT apps also include pop-up ads and sponsored content.
Connected TV (CTV)
CTV stands for “Connected TV,” and it refers to the method by which most OTT content is delivered to users. It’s a term for any TV-connected device which can connect to the internet, and allow users to access their on-demand content.
CTV is the way that most viewers watch OTT services like Hulu and Netflix, and they have their own unique benefits when it comes to advertising.
Roku, for example, is a leading provider of CTV TVs and devices, and it integrates a native advertising platform into its entire user interface – allowing ads to be placed alongside apps and channels that display user’s favorite content. This same method of advertising is being used by companies like Samsung when building smart TVs.
OTT And CTV Are Related–But Far From Identical!
While OTT advertising typically consists of pre-roll ads and other video advertising that is shown to users while watching content, CTV advertising is placed alongside apps and shows on their connected device.
So, while CTV and OTT are related, they are distinct from one another. However, using both as part of your marketing strategy is a fantastic way to target users who are avoiding traditional cable!