OTT Vs. CTV Advertising – Are You Comparing Apples To Oranges?
In the swirling three-letter alphabetic soup of marketing terms, OTT and CTV are usually mistaken with each other. Though the primary purpose of serving video content to the viewers for both advertising technologies remains the same, there are a few differences that define the uniqueness of both. To understand that difference, we first need to have a firm grip on the basic definition of both advertising techniques.
What is OTT Advertising?
It refers to the advertising carried through the “over the top technology.” OTT serves advertising video content over the traditional closed television system. The OTT users don’t need to pay for subscriptions or TV cable companies to view their video content because of the readily available content on the internet.
Studies have shown the ads in video format result in the highest ROI. As with most video ads, OTT ads can be seen during, before, or after watching the video content. Studies also indicated that users willingly watch a video ad to continue viewing content. Mid-roll advertising seems the most effected, accessible, and acceptable among users.
More than half of the viewers of the advertising centered platform like Hulu, as compared to the subscription centered, Netflix was willing to accept an advertisement.
The consumers can watch the OTT through OTT TV boxes, like the android OTT TV, Amazon Fire TV, Apple TV, and Roku as well as any television, laptop, or mobile phone that is connected to the internet. The OTT TV boxes serve as a hub for connection to the OTT services. It also functions as a mini-computer complete with its applications, links, and needed specifications to watch OTT TV.
What is CTV Advertising?
It refers to the advertising displayed on the” Connected TV.” Primary it’s just another term for a television that has a wireless internet connection or an Ethernet connection. OTT content is typically delivered through CTV, and if you look around, you’ll find OTT and CTV services everywhere. CTV is a personal favorite of the Millennials. Many of them have already switched their traditional TVs with CTV. Having access to all the readily available and sometimes free internet content on CTV has been a catalyst in the growing popularity of its services. By 2020, 75% of families are estimated to have internet-connected TVs in the US.
Companies with specific advertising content that targets Millennials get the highest ROI on their market campaigns. CTV advertising agency realizes that OTT CTV advertising services are much cheaper than a traditional TV advertising campaign. That is why from the contrast of the past, Users nowadays understand and accept watching ads through CTV, as they know that it’s part of the business model. It is a cost-effective, precise way to reach your target consumers with strong reasoning behind showing ads. It automatically results in more profitable ads via CTV advertising.
The evolution and growth of both OTT and CTV industry are continuous. Just like the wireless is predicted to eradicate wires and cables, CTV and OTT have the potential to make the traditional TV service extinct. Either way, the boom in the popularity of CTV and OTT advertising gives the advertisers an excellent opportunity to create engaging video content, utilize the low prices of these services and make the most of ROIs.