What is the difference between CTV and OTT?
In today's world, streaming video services have become an essential part of entertainment and information for millions of people. These services have revolutionized the way we consume content by offering us a more personalized and flexible way to watch our favorite shows, movies, and other video content. Two acronyms that you often hear in this context are CTV and OTT. They are often used interchangeably, but there is a significant difference between the two. In this article, we will explore the differences between CTV and OTT, and how they are changing the way we consume video content.
What is CTV?
CTV stands for Connected TV, which is a TV that is connected to the internet and has access to online content. A CTV can be a Smart TV, a gaming console, or a streaming device like a Roku, Apple TV, or Amazon Fire TV. These devices enable users to stream video content from various services, including Netflix, Hulu, Amazon Prime Video, and many others. CTVs are becoming increasingly popular, and according to eMarketer, there will be over 204 million CTV users in the US by the end of 2022.
What is OTT?
OTT stands for Over-The-Top, which refers to video content that is delivered over the internet, bypassing traditional distribution channels like cable or satellite TV. In other words, OTT is a way of delivering video content directly to consumers without the need for a middleman. Examples of OTT services include Netflix, Hulu, Amazon Prime Video, and many others. These services offer a wide variety of content, including TV shows, movies, documentaries, and more.
Difference between CTV and OTT:
The primary difference between CTV and OTT is the device used to consume the content. CTV refers to the TV screen itself, which is connected to the internet and can access various streaming services. On the other hand, OTT refers to the content delivery method, which is delivered over the internet and can be consumed on various devices, including CTVs.
Another difference between CTV and OTT is the content delivery model. CTVs are often used to consume live TV channels, which are delivered through cable or satellite TV providers. However, with the rise of streaming services, many CTVs now offer access to on-demand content as well. OTT, on the other hand, is exclusively an on-demand content delivery model.
Another significant difference between CTV and OTT is the advertising model. CTVs are often used to consume live TV channels, which are ad-supported. However, with the rise of streaming services, many CTVs now offer ad-supported on-demand content as well. On the other hand, most OTT services offer ad-free content, although some services do have ads in their content.
CTV and OTT are changing the way we consume video content:
CTV and OTT are changing the way we consume video content in several ways. First, they offer more personalized and flexible viewing options. Users can choose from a wide variety of content and watch it on their own schedule. This flexibility has made CTV and OTT services popular with cord-cutters who prefer not to pay for traditional cable or satellite TV packages.
Second, CTV and OTT services have opened up new revenue streams for content creators and distributors. With the rise of on-demand streaming services, content creators can now reach a broader audience and monetize their content through subscription or ad-supported models. This has led to an explosion of original content, including TV shows, movies, and documentaries, that are produced exclusively for streaming services.
Third, CTV and OTT services are changing the way advertisers reach their audiences. Advertisers can now target their ads to specific demographics and track the effectiveness of their campaigns more accurately. With the rise of data-driven advertising, advertisers can use sophisticated targeting methods to reach the right audience with the right message at the right time.
Fourth, CTV and OTT services are changing the way traditional TV advertising is bought and sold. Traditional TV advertising is typically sold through upfront deals, where advertisers commit to buying ad slots on specific TV shows in advance. However, with the rise of CTV and OTT services, advertisers can now buy ads programmatically, using real-time bidding and targeting to reach their desired audience. This has led to a shift away from traditional upfront deals towards more flexible, data-driven ad buying.
Fifth, CTV and OTT services are changing the way we measure the success of video campaigns. In the past, TV advertising was often measured by ratings, which provided a rough estimate of the number of people watching a particular show at a particular time. However, with the rise of digital advertising, we can now track metrics like impressions, clicks, and conversions, which provide a much more accurate picture of the effectiveness of our campaigns.
In conclusion, while CTV and OTT are often used interchangeably, they are not the same thing. CTV refers to the device used to consume content, while OTT refers to the content delivery method. However, both CTV and OTT are changing the way we consume and monetize video content, and they offer new opportunities for content creators, distributors, and advertisers. As more and more people cut the cord and switch to streaming services, CTV and OTT will continue to shape the future of video content consumption. Understanding the differences between CTV and OTT is essential for anyone looking to navigate this rapidly evolving landscape.