Streaming services have been on the rise in recent years and are becoming increasingly popular around the world. These are digital platforms that allow users to access video, audio, and other forms of media content over the internet. Well, some of the most popular streaming services include Netflix, Amazon Prime Video, Hulu, Disney+, HBO Max, Apple TV+, to name a few. The growth of these streaming services has also led to the growth of Connected TV (CTV) and Over-The-Top (OTT) advertising.
Are these terms new to you? Then, you are in the right place!
In this blog, you’ll learn the fundamental things you need to know about the two acronyms and how advert experts can make the most of them as they are becoming increasingly popular in the world of digital ads.
CTV and OTT Explained
Perhaps the best place to start would be to look at the definitions of OTT and CTV. So, let’s first look at what is CTV and what is OTT.
What is CTV?
CTV essentially stands for Connected TV. It refers to a television set that is connected to the internet, either directly or through a device such as a streaming media player, game console, or smart TV.
- CTV allows users to access streaming content over the internet, as well as traditional broadcast and cable programming.
- CTV advertising is a form of digital advertising that delivers targeted video ads to viewers on their CTV devices.
- It is becoming an increasingly popular way for advertisers to reach audiences who are consuming media through digital channels.
What is OTT?
OTT stands for Over-The-Top. It refers to the delivery of video, audio, and other media content on the internet, bypassing traditional distribution channels such as cable or broadcast television networks.
- OTT content can be accessed through various devices, including smartphones, tablets, smart TVs, and streaming media players.
The difference between CTV and OTT
While you may have noticed that CTV and OTT are often used interchangeably, there are some considerable differences between the two terms:
Connected TV actually refers specifically to the hardware device (television set) that is connected to the internet and allows for streaming content to be accessed on the device.
On the flip side, Over-The-Top (OTT) refers to the content delivery method that allows media content to be delivered directly to users over the internet, bypassing traditional distribution channels such as cable or broadcast television networks.
In other words, CTV is the device and OTT is the content delivery method. So, CTV can be used to access OTT content, along with other types of content, like traditional broadcast and cable programming.
The terms CTV advertising and OTT advertising are often used interchangeably. They are the same type of advertising-targeted video ads that are delivered to viewers on their CTV/OTT devices.
Benefits of CTV and OTT
There are several benefits of using CTV and OTT for both consumers and advertisers:
Benefits for Consumers:
- Access to a wide range of on-demand content: CTV and OTT platforms provide users with access to a vast library of on-demand video and audio content, allowing them to watch or listen to their favorite shows or movies at any time.
- Flexibility: Consumers can access CTV and OTT content on multiple devices, including smart TVs, smartphones, tablets, and streaming media players, providing them with the flexibility to watch content wherever and whenever they want.
- Personalization: CTV and OTT platforms use data and algorithms to personalize the content recommendations for individual users, making it more likely that they will discover new content that they are interested in.
Benefits for Advertisers:
- Targeted advertising: CTV and OTT advertising allows for precise targeting of audiences based on demographic, geographic, and behavioral data. This helps advertisers to deliver their ads to the most relevant audience, making their advertising more effective. For example, a business can use CTV advertising for brand awareness, and to generate better Return on Investments (ROI) for campaigns.
- Measurable results: CTV and OTT advertising platforms provide advertisers with real-time data and analytics, allowing them to measure the impact of their advertising campaigns and optimize them for better performance.
- Brand safety: CTV and OTT advertising platforms offer enhanced brand safety measures that help to prevent ads from being displayed in inappropriate content, ensuring that the brand's reputation is not compromised.
CTV and OTT platforms present a good avenue for consumers looking for more flexibility and control over their media consumption. The technology also offers advertisers a more effective and measurable way to reach their target audiences.
The future of OTT and CTV is bright, as these platforms continue to grow and evolve. As more consumers shift to streaming services, the adoption of OTT and CTV will certainly increase in the coming years. In fact, the rise of new technologies such as artificial intelligence and machine learning is also expected to drive innovation in content creation and delivery, making CTV and OTT even more attractive for both consumers and advertisers.
As a brand, now is the best time to recognize and leverage the potential of targeting audiences through CTV and OTT advertising!