CTV versus OTT: They are Not the Same

CTV, short for Connected TV, is simply a TV device that is connected to the internet. Internet access allows the viewer to stream professional, long format content over the internet directly on their TV. Viewers can download streaming apps, like Netflix and Hulu, on their CTV devices to instantly access and view this content.

Types of CTV devices:

TV Device:

Smart TVs: These are modern TVs that feature built-in streaming capabilities, eliminating the need for an external device by hosting a direct connection to the internet, and therefore to streaming content.

Third-Party Plug-ins:

Roku: A streaming device that connects to your TV through HDMI, providing access to an extensive range of streaming apps.
Amazon Fire TV Stick: A compact gadget designed to plug into the HDMI port of your television, granting viewers entry to a wide array of streaming apps such as Amazon Prime Video, Netflix, Hulu, and more.
Apple TV: Another plug-in streaming device enabling viewers to stream content from apps like iTunes, Netflix, and Hulu, in addition to offering access to live TV and sports programming.
Google Chromecast: A compact device enabling viewers to effortlessly stream or cast content from their phone or computer directly onto their TV screen.

OTT, or “Over-The-Top,” isn’t something you can touch like a device or a plug-in; instead, it’s a way of delivering content. It’s how Full Episode Player (FEP) content, which includes professional, longer videos, gets delivered to the internet. Once it’s there, you can watch it on any device that’s connected to the internet, like your smart TV, phone, or tablet. OTT works by sending this content “over the top” of a cable box, using the internet to reach your devices.

In short, OTT delivers the content to the internet, and a CTV device accesses and plays this content for the viewer.

Just like OTT and CTV have different meanings, so do CTV advertising and OTT advertising.

CTV advertising  exclusively delivers video advertisements to Connected TV devices. The video advertisements are delivered during streaming content viewed on Connected TV devices alone.

OTT advertising is similar, the difference being that this method delivers ads to any internet-connected device except for CTV. In OTT advertising, a video ad is delivered during streaming content, viewable on any internet connected device: mobile, tablet, desktop. The exception here is CTV devices; OTT advertising does not include CTV devices because CTV devices fall under its own domain of CTV advertising.

Notice the difference between CTV and OTT. OTT connects the FEP content to the internet, which can be accessed by any internet-connected device. CTV is one of the internet-connected device options that can stream the FEP content. Because OTT delivers the video to the internet, the CTV device is then able to access the video and play it.

Written description of the pathway visual:

1. Video content is simply the piece of video content, no matter the quality, creator, or length.

There are two types of video content:

1. User Generated Content (UGC) is original video content that is created by an individual user, not a brand or professional. Examples include videos created by users on TikTok, Instagram, and other user content platforms.
2. Full Episode Player content (FEP) is professionally produced video content that usually follows television formatting and has an extended duration. Examples include TV shows and movies.

FEPs can be delivered in two ways:

1. Via Traditional TV: scheduled and broadcasted FEP content to traditional TV devices via satellite and cable (also called “linear TV”).
2. Via OTT (Over-The-Top): delivers FEP content to the internet.

• • FEP content on the internet can be accessed by multiple types of devices, including CTV, mobile, tablet, or desktop devices.

Essentially, video content is either bucketed as user generated content (short, user created) or a full episode player (professionally generated, longer duration). If it is a FEP, it can be shown via Traditional TV (via satellite or cable) or delivered via OTT to the internet. If delivered via OTT, it can be accessed by multiple internet-connected devices (CTV, mobile, tablet, or desktop).

EMG only serves video ads to CTV devices. The video creatives are exclusively delivered to inventory on Connected TVs, not delivered on streaming apps or websites through mobile, tablet, or desktop devices. But aren’t we missing important streaming mediums? Surprisingly, no. The reason for this exclusivity is quite simple: performance.

Through years of attribution analysis and optimization, EMG has concluded that CTV advertisements have the highest performance out of all internet-connected devices. We suspect this is because CTV has a unique “living room experience” where the user is immersed in the content on the big screen, facing less distractions with less ability to walk away from the ad. This immersive TV experience boosts the engagement of the user, and therefore their engagement with the ad. Contrarily, it is easy for mobile or tablet streamers to walk away from the device at any point or carry it around with them, risking distractions and disengagement. CTV’s immobility and reputation for demanding better attention creates a more focused “living room” atmosphere where the audiences will be the most attentive, and therefore be the most influenceable to the advertisements.

EMG believes in only spending media dollars on the device that repeatedly proves its superior audience engagement. Focusing the budget exclusively on CTV will most productively spend the media dollars, obtaining inventory in front of the most engaged audiences with the most meaningful impressions. Wasting ad dollars on streaming via all devices would lose a level of the audience engagement quality that is found in CTV viewers alone.

The big takeaway is that CTV and OTT are different terms with different meanings. The primary difference between the two is that OTT is the method of delivery that streams content across all devices such as mobile and desktop, while CTV is the device used (usually a smart TV) to access and view the OTT content. Similarly, OTT advertising is delivered on mobile and desktop platforms, whereas CTV advertising is delivered on Connected TV screens.

CTV stands out as the most performative advertising medium due to its ability to foster an immersive, leaned-back viewing atmosphere. This setting ensures that viewers are highly engaged with both the content and the advertisements presented.

To advertise on the highest performing streaming medium with custom curated audiences and premium streaming inventory, start here.