OTT and CTV – What’s the difference?
Understanding OTT and CTV: The Importance of Differentiation
While the purpose of an acronym is usually to make things easier, easier to read and easier to remember, too many abbreviations can cause the opposite. Words and their meanings can merge, becoming known as ‘interchangeable’ when, in fact, they are strikingly different. When a person searches about Connected TV and Over-the-top, the questions that arise include, ‘Is OTT and CTV the same?’ or ‘OTT vs CTV: What’s The Difference, And Why Does It Matter?’
Knowing there is a difference and what that difference is, helps a publisher understand whether to leverage it and how to implement it effectively.
OTT – Over-the-top
A blog by Tinuiti explains,“OTT (over-the-top) advertising is advertising delivered directly to viewers over the internet through streaming video services or devices, such as smart or connected TVs (CTV)” (1) and it carries on to say that “the term “over-the-top” comes from the ability to bypass traditional TV providers that control media distribution, giving advertisers the ability to reach their audiences directly” (Tinuiti 2022). Therefore, over-the-top can be taken as the literal sense of the word as it truly means to go over-the-top and bypass set-top boxes. It is instead a delivery mechanism for TV/video content online, and this is usually through streaming or video-on-demand.
CTV – Connected TV
Oracle defines CTV as “a device that connects to—or is embedded in—a television to support video content streaming. Different types of CTVs include Xbox, PlayStation, Roku, Amazon Fire TV, Apple TV, and more” (2). Therefore, CTV advertising refers to the practice of delivering targeted advertisements to viewers who are streaming content on Connected TV platforms.
Benefits of OTT
1. OTT platforms have global reach and accessibility, transcending geographical limitations. Viewers from different parts of the world can access and enjoy content from various regions, opening up opportunities for international content distribution. This global accessibility enables content providers to reach broader audiences and expand their viewer base.
2. OTT platforms are known for their original and exclusive content offerings. They produce high-quality original series, movies, and documentaries, which often attract top talent and critical acclaim. The availability of exclusive content creates a unique selling point for OTT platforms, enticing viewers with fresh and compelling content that cannot be found elsewhere.
3. Subscriber to premium OTT services often enjoy uninterrupted viewing without commercial interruptions. For ad-supported OTT platforms, ads are typically shorter and less frequent compared to traditional linear TV, providing less intrusive ad experience.
Benefits of CTV
1. CTV provides viewers with flexibility and convenience in terms of content consumption. Users can access a wide variety of on-demand content, including movies, TV shows, documentaries, and user-generated videos. They can choose what to watch, when to watch it, and on which device, allowing for personalised and convenient viewing experiences.
2. CTV advertising provides advertisers with detailed metrics and analytics to measure the performance of their ad campaigns. Advertisers can access data on impressions, completion rates, click-through rates, conversions, and more. These insights enable advertisers to make data-driven decisions, optimize their campaigns, and understand the impact of their advertising investments.
3. CTV platforms offer the flexibility to view content across multiple devices, including smart TVs, streaming devices, smartphones, tablets, and computers. This cross-device viewing experience allows viewers to seamlessly transition between screens, ensuring they can enjoy their favourite content regardless of the device they are using.
(1) https://tinuiti.com/blog/ott-over-the-top-ads/ott-advertising-guide/
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