What is Streaming TV/CTV/OTT?

Let’s start with the basics: A connected TV (CTV) is any television that is connected to the internet.

CTV advertising refers to placing ads for audiences to view specifically on this type of device.

OTT (Over-The-Top) advertising refers to content provided via high-speed internet rather than through traditional cable or broadcast providers. This includes streaming TV shows, movies, live sports, and news directly to viewers via devices like connected TVs, Roku, Amazon Fire TV, Apple TV, gaming consoles, and mobile devices. Advertisements are delivered during content breaks, mirroring the traditional TV experience with 15 or 30-second non-skippable ads, enhancing brand visibility.

OTT bypasses traditional media distribution channels, offering direct audience access, while CTV (Connected TV) denotes the actual devices where streaming content is viewed, primarily on household televisions. Approximately 85% of streaming TV viewing occurs on CTVs.

Different Types of CTV Devices:

  1. Smart TV

  2. TV + over-the-top streaming device (ex. Amazon Fire TV, Roku, Apple TV, Google Chromecast)

  3. TV + gaming console that serves as an over-the-top streaming device (ex. PlayStation, Xbox)

  4. TV + set-top box (ex. Blu-ray)

Benefits of Streaming TV Advertisements

Like traditional/linear TV, CTV advertisements offer the opportunity to reach audiences on a big(ger) screen in the same format as the content they’re watching.

Often, audiences expect to see commercials while they’re watching an episode—or, if it’s particularly bingeable, six or seven episodes—of their favorite new series. As people spend more and more time watching content on CTVs, the advertising opportunity will only continue to expand. And with streaming giants like Disney+ and Netflix rolling out plans for ad-supported tiers, expect access to even more premium CTV ad inventory to follow.

OTT/CTV advertising merges the impact and reach of traditional TV with the precision and analytical depth of digital advertising. Key benefits include:

  • Powerful Brand Impact: Full-screen ads on premium content offer compelling brand storytelling opportunities.

  • Precision Targeting & Analytics: Utilize extensive data to reach specific audiences, enhancing relevance and reducing wastage.

  • Extensive Reach: Essential for connecting with the 27% of households in 2021 that are cord-cutters or cord-nevers, a number projected to increase to 35% by 2024.

  • Cost-Effective: Lower entry cost compared to traditional TV, making it accessible to a broader range of advertisers.

Why CTV Should Be a Part of Your Strategy

CTV’s reach is significant, and advertising on these devices is a great opportunity to build and expand awareness of your brand. The platform allows marketers to deliver high-quality, non-skippable, 100% viewable premium inventory in a brandsafe environment. And when it comes to video completion rate (VCR)? CTV absolutely dominates over other channels, with rates of up to 95% ! With people spending upwards of 80 minutes per day with subscription OTT video , running CTV ads means reaching viewers where and when they are spending lots of time. Beyond this, CTV advertising is among the fastest growing sectors of the US digital ad market. Year-over-year US CTV ad spend grew by an estimated 60% in 2021, reaching more than $14 billion. And from there, it will only continue to rise, with CTV spend projected to hit $28.5 billion by 2024—a whopping 9% of total digital media ad spend.

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