difference between CTV and OTT advertising

What is the difference between CTV and OTT advertising?

OTT advertising is advertising through video ads on any device you stream video content. These ads, if bought strategically, should only run in long-form video programs, which we call Full Episodic Programming or FEP. FEP is a fancy way of saying that your ads stream in full-length TV shows or movies, not in a short cat video. OTT ads are not YouTube ads or Programmatic Video ads. OTT is its own advertising category, and OTT stands for Over the Top, meaning that the video content is streamed “over the top” of a typical TV content delivery system like satellite or cable. 

OTT ads can be very beneficial for advertisers with a niche audience because you buy OTT advertising like digital advertising, with the ability to target a demographic and geographic area narrowly. It’s easier to track than traditional TV, sold by CPM (cost per thousand impressions) versus rating points like conventional TV advertising. 

OTT works well for advertisers with a visual need to show their product or service and for those who want to use the sight, sound, and emotion that comes from running video ads. Knowing where to buy your OTT ads is the most important aspect of executing a successful streaming TV campaign. There are many OTT sellers, and knowing which company to trust is our job. We have tried several OTT providers and vetted dozens of the top players in the industry. If you’re interested in exploring streaming video advertising as a paid media tactic, feel free to call us to schedule a meeting to learn how we can help you generate more significant ROI on your ad spend without any costs beyond your existing marketing budget. 

What’s the difference between OTT and CTV in advertising?

CTV and OTT advertising both refer to the delivery of video content over the Internet without the need for a traditional cable or satellite subscription. However, there are some critical things to know if you are considering buying OTT advertising!

CTV, or Connected TV, refers specifically to the delivery of video content to a television that is connected to the internet. This can include Smart TVs, streaming devices like Roku or Apple TV, or video game consoles like a PlayStation or Xbox. CTV allows advertisers to reach audiences who are watching TV content on a TV (not on a device like an iPad or Computer) and deliver ads in the same way that traditional television ads are delivered; on the biggest screen in the house, the television!

OTT advertising more broadly refers to advertisers reaching audiences who are watching video content on any internet-connected device, including smartphones, tablets, televisions, and laptops without necessarily having a traditional cable or satellite subscription.

OTT content can include streaming services like Peacock, Paramount, Pluto, and cable networks that stream their content and have users logged into their subscriptions.

It’s pivotal to note that OTT advertising will not be seen in paid subscription content like Netflix, Amazon Prime Video, HBO Max, etc. since these are content providers that viewers pay not to be served ads. 

Hulu Advertising

We can advertise on Hulu, but that is a separate media buy and should be treated as an independent advertising purchase from your OTT advertising purchase. Hulu is a walled garden.

In summary:

CTV advertising is a specific type of OTT advertising. Both CTV and OTT offer opportunities for advertisers to reach specific audiences and deliver personalized and relevant ads, but the scope and reach of OTT are generally broader than CTV.

CTV ads should cost more than OTT ads. If you have realized after reading this blog that you didn’t know there were differences between CTV and OTT, then you really should have a Media Buyer on your team advocating for you and your advertising budget.

Professional management of your advertising budget is what we do at Thrive Advertising. We professionally buy advertising. Our job is to know the ins and outs of all advertising channels and how to purchase advertising most effectively and efficiently for your business.

Our access to 1st party data sets us apart from the rest because our data access to viewership behaviors allows us to reach the right audience whenever and wherever they are! Our team knows how to serve your ad with the right content at the right time. We work with you to determine your best audience targeting based on your business objectives and match that audience against 1st party data to determine the highly indexed networks and content platforms the audience is most likely to watch as they consume streaming TV content.

Most of our OTT campaigns are executed through a single publisher-side ad server, which is a point of differentiation from many other digital media platforms.

Our go-to platform has long-term relationships with TV programmers, guaranteeing access to premium inventory for our clients. We have access to exclusive VOD inventory that only our media source can provide access to at scale locally.

Finally, we ensure we buy brand-safe video inventory with guardrails to ensure the quality of your OTT streaming content.

If you want to know what we do, check out this blog that explains what we do as your new media buyer!