What is Connected TV (CTV)?

Connected TV (CTV) is a device that connects or is built right into your TV to enable video content streaming. Think of devices like Xbox, PlayStation, Roku, Amazon Fire TV, Apple TV, and more – they’re all part of the CTV family.

As we talk about CTV and its close friend, Over-the-Top (OTT), we’re witnessing a change in how people watch TV. More and more people are cancelling their old-school cable and satellite subscriptions and opting for these streaming or Video on Demand (VOD) formats.

What is Over-the-Top (OTT)?

OTT is all about getting your TV or video content directly from the internet. You don’t need to be tied to a traditional cable or satellite provider; you can watch your favorite shows on various devices – your tablet, phone, laptop, desktop, or even your TV. It’s all delivered in a streaming or VOD format. A few examples include Netflix, Hulu, Amazon Prime. Even the big networks are joining the party with their own OTT services, like Disney+ and NBC’s Peacock.

What is Linear TV?

Lastly, there’s Linear TV. It’s the classic system where you tune in to watch a scheduled TV program as it airs on its original channel. You can record it with your DVR and watch later. Linear TV still has the largest market, but the TV landscape is getting quite competitive.

What’s the difference between all three methods?

To sum it up, CTV and OTT are all about bringing the TV experience online, but they’re not the same thing. Linear TV is the traditional TV we’ve known and loved for years.

Why is all of this important?

Well, CTV and OTT have opened up new opportunities for advertising. With CTV and OTT advertising, you can reach viewers who might not be watching traditional Linear TV.  So, it’s a chance to connect with the right audience at the right time, blending the precision of digital advertising with the impact of TV viewership. 

Which is better for advertisers? CTV, OTT or Linear TV?

When it comes to advertising, we’re faced with an important question: which is the better choice – Connected TV (CTV), Over-the-Top (OTT), or good old Linear TV? 

CTV and OTT Benefits

Connected TV and Over-the-Top (OTT) advertising bring some great advantages. With user-controlled viewing experiences, advertisers can connect with the right audience at the right time. User registration data opens the door to cross-screen targeting and IP-based delivery allows the application of 1st and 3rd party audience data to reach households enjoying ad-supported content.

CTV and OTT Challenges

But, as with everything, there are some disadvantages. The number of homes with a CTV hasn’t quite caught up with those still using traditional broadcast and cable. Matching cookies or mobile ad IDs (MAIDs) to IP can be a bit tricky, limiting the scale of available inventory for audience targeting. Fragmentation creeps in due to account sharing and the competition among content distributors and CTV device makers is strong.

Linear TV Benefits

Linear TV boasts the largest market and now welcomes new platforms that bring automation and data-driven decisions to TV media buying. First and third-party data go beyond Nielsen’s buying demos, helping advertisers make smarter decisions about which linear TV inventory suits their campaigns. There’s also a chance to purchase airtime on niche TV networks, which can lead to cost efficiencies and broader reach.

Linear TV Challenges

However, Linear TV faces its own set of challenges. Reach is getting fragmented, thanks to the increasingly competitive advanced TV landscape. Outdated policies and currencies can slow down audience targeting, and even with data, it’s often broader and less granular than what CTV and OTT offer.

In the end, the best choice depends on your advertising goals and the audience you’re trying to reach. Each option has its strengths and weaknesses, but what truly matters is understanding your audience and crafting your strategy accordingly. So, whether it’s CTV, OTT, or Linear TV, the key is to make informed choices that align with your objectives.