What is OTT (Over-the-top) vs. CTV (Connected TV)?

Technology has changed how everything works, including how television operates. When watching the television through the internet was once thought of as impossible. It’s now something that most people can’t live without.

Most people have now ditched the TV shows and are now watching internet bound TV. 

What is OTT (Over-the-top)?

Over-the-top (OTT), is the video content that is served over all kinds of devices including the traditional closed TVs. When using OTT, users don’t need to pay a TV cable company to watch contents, as most of it is accessible through the internet.

Besides watching the content through a TV, mobile, or laptop that’s connected to the Internet, users can also use OTT boxes or streaming devices (e.g. Chromecast, Amazon Fire sticks, Roku box, smart TVs, Apple TVs). These boxes or sticks act as a hub, where people can connect to OTT services and function as a mini-computer with all the required specifications, applications, and connections to watch video contents.

OTT boxes are available in many retail shops, and established corporations like Amazon even have theirs over the top boxes. Then there is also the use of game consoles e.g. Xbox, Sony Playstation where they can be connected to the TVs to stream contents too. Essentially, the former and latter are collectively known as “OTT devices“.

As technologies improve or new ones emerge, the term “OTT” has since evolved to refer to streaming media services that offer videos and other digital contents to any devices including TVs that are or capable of being connecting to the Internet, thus bypassing the traditional cable, broadcast, and satellite television platforms.

The Benefits of OTT

• You reach many people. Viewers watch most ads almost to completion
• 100% viewability. All advertisements run full screen meaning 100% of pixels are in view. This eliminates below the fold ads of other media channels.
• Brands safety with ads delivered on-demand, or during live TV, viewers are reached across reliable networks and popular content.

 

What is CTV (Connected TV)?

CTV/OTT are two terms typically mentioned together and often confused.

Connected TV (CTV), as an encompassing term refers to TVs that are capable of connecting to the Internet to access contents beyond what a cable or broadband provider offers. For that reason, besides smart TVs or IPTVs which are inherently capable of connecting to the Internet, CTVs therefore include OTT devices which are connected to traditional TVs, enabling the TV now being able to connect to the Internet.

OTT contents therefore can now be delivered through CTVs and other popular devices such as mobile phones, ipad/tablets, computers.

 

The Benefits of CTV

• CTV helps you in reaching customers you can’t reach without using traditional TV commercials. 
• Great targeting capabilities. When using connected TV audience targeting, you can be certain that a huge part of your investment is being used to reach your valuable and potential customers.
• It’s quantifiable. It’s possible to measure the results you’re getting from your campaigns with both traditional and digital metrics. This includes video completion rates. And the buyer’s journey, from when they see your ad to when they make a purchase.
• Expanding your audience. By using CTV, you get a chance to advertise your products to millennials, who are no longer watching traditional TV.

Let us take a closer look at the statistics.

Previously the video content was delivered only through the medium of Television. Later video content started to be delivered through a cable provider through set-top boxes.

With the revolution in internet technology, we no longer need to rely on cable providers or Television to watch the video. Through high speed internet and mobile connectivity, it is possible to watch live videos through any portable device that has internet connection.

In the last few years, several content providers such as Netflix, Amazon Prime, Hotstar have reached the limelight due to the unique flexibility they offer to the user.

Here the video content can be viewed through any device of the users choice from anywhere anytime.

Studies have shown that every year the OTT revenue is increasing. The graph below shows the worldwide income of the OTT platform from 2010 to 2024.

As per a recent study done by the popular internet marketing agency eMarketer, in 2020, the average time spent on OTT platforms surpassed 62 minutes. This is an increase of 15% from the last year.

Are CTV and OTT the Future of Advertising?

OTT platforms such as Amazon Prime and Netflix score high for providing high-quality video content.

OTT  marketers try to retrieve the cost of free subscriptions through advertising.

Hulu and Hotstar are two OTT companies for providing free subscriptions. More than 50% of Hulu’s subscribers watch videos with ads.

Roku is another famous company which provides all the OTT experience through TV Seto top box. Their hardware is designed to connect with multiple OTT platforms such as Amazon, Hulu, Netflix, Youtube and Amazon Prime in one go.

The company provides OTT TV at a very affordable cost and shows advertisements to compensate for the discount they offer.

OTT is delivered through CTV. In fact, OTT and traditional TV have a very close relationship. The only difference is that OTT uses the internet, and is a bit cheaper. 

Like other advertisement channels, OTT displays ads at the beginning, middle, or end of an advert. Most users prefer having an advertisement in the middle of a program.

Some marketers believe that CTV is the future of advertisement. This is because you can notice the Connected TV and OTT gadgets everywhere. And many countries continue to adopt Netflix, Amazon, Hulu, and other streaming services.

Take Away

The OTT and CTV ads are significantly growing and becoming popular among advertisers. It helps in reaching a vast and targeted audience, which increases your chance of getting more sales.

Who knows? The traditional TV may even become distinct in the coming years. 

 

Interested to tap into OTT and CTV as a new source of inventories for your next campaign? Get in touch with us to ask for a demo today!