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What is Connected TV & OTT? Everything You Need to Know


Nowadays, the television industry presents marketers with an exciting opportunity to strengthen their digital campaigns. So, if you want to integrate streaming TV into your digital strategy, you must first understand how this type of content fits into the overall digital media landscape. And for that, understanding the differences between Connected TV and OTT solutions (CTV vs. OTT) is an excellent starting point.

These two terms are sometimes used interchangeably or are confused with one another. It’s most likely because they refer to relevant areas of digital television advertising. Both channels operate together to send advertisements to a connected TV device. If it’s a little confusing, you’re not alone here. Here, we will discuss everything you will need about Ott vs connected tv.

Let’s Get Started!

Here are some statistics that show the growth of OTT and CTV:

  • According to Statista, the average revenue per user (ARPU) for OTT/CTV advertising will reach $52.25 by 2025.
  • According to a recent survey, more than 65% of respondents use more than one OTT platform.
  • Leichtman Research Group found that over 80% of TV households had at least one connected TV device, with an average of 4.1 devices per connected TV household.

What is OTT?

Over-the-top (OTT) is the distribution of TV/video content directly from the internet. Users of OTT Platform do not need to subscribe to a traditional cable or satellite provider to access the content; they can watch it on a wide range of devices, including tablets, phones, laptops/desktops, television, etc.

Here are a few benefits of OTT Advertising:

  • Viewers of OTT advertising can click on links, answer surveys, and even open a new tab to search for a specific product or service.
  • OTT advertisements can reach a large number of people with suitable interests.
  • With advanced data feedback and analytics available through many web-based platforms that host OTT advertisements, OTT advertisers can target niche audiences and demographics.

What is Connected TV?

A connected TV is any television that can stream digital video. It includes smart TVs and TVs that use a device to facilitate the delivery of streaming video.

Internet-connected devices such as Roku or Chromecast and the game consoles such as Xbox and Nintendo Switch – all allow a TV to stream digital media, converting it to a connected TV.

The following are some of the benefits of Connected TV Advertising:

  • Compared to linear TV, CTV advertisements have a much lower entry cost.
  • CTV advertising is an effective way to increase brand awareness.
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  • CTV Advertising is hosted via a digital platform. Therefore, you can view results virtually anytime and make changes as needed.

The Difference Between CTV and OTT

OTT vs. Connected TV: Which Is Better? It’s a common question, and many marketers may first believe that CTV advertising and OTT advertising are competitive, but this is not the case.

OTT is a delivery mechanism: the strategy for putting content in front of users, regardless of the device they use to watch it. A connected TV, however, is an excellent device for streaming that content. OTT and video streaming can both be accomplished with Connected TV.

OTT and Connected TV devices are becoming increasingly popular in so many households. In the United States alone, there are more than 182 million users of OTT services. More than 820 million connected devices exist across the country, allowing for a broad reach and connectivity among users.

OTT advertising is often put in front of specific pieces of content. You can customize them to a specific demographic depending on the type of content you’re advertising alongside, but you may not be able to track users’ other behavior or get a better sense of their plans. Whereas, CTV advertising allows you to engage with users more directly. 

Why Switch From Traditional TV to OTT and CTV? – Know the Reasons!

OTT and CTV are novel experiences for everyone. For consumers, it’s a new method to watch TV across multiple screens, with no cable or satellite connection needed. For advertisers, it’s an efficient way to reach a new and unique audience. 

Today’s audiences are increasingly turning to diverse viewing options that don’t necessarily need a traditional television. They’re watching online content on Smart TVs, computers, tablets, smartphones, gaming consoles, and other connected devices like Amazon Fire, Roku, and Apple TV.

As viewers continue to switch to OTT CTV Media, smart advertisers allocate more of their budgets and resources toward OTT platform providers.

How to Get Started With an OTT Platform?

To be frank, creating your own OTT platform can be either a breeze or a nightmare. It entirely depends on the method you choose to develop your OTT video streaming platform.

Many CTV software providers and OTT software providers are ad-based and they set advertisements as their main priority. Users can choose between basic streaming plans that include advertisements and premium plans that do not include ads. Before running digital marketing campaigns on digital portals, one should be familiar with the Best Connected TV Platform Providers and Connected TV companies. Compared to traditional TV services, Connected TV Providers/Connected TV Solution Providers offer lower-cost streaming options. Users are compelled to cut the cord and choose OTT and CTV options, resulting in high ad viewing.

Once you scan the market, you can find several leading OTT TV platform providers/OTT video solution providers that meet the video or audio needs of content creators, broadcasters, media channels, and anybody else who wants to manage and monetize their valuable online assets. 

Summing Up

CTV and OTT have grown in popularity in recent years. Today’s users can choose from a wide range of streaming services, and many households have different devices for streaming content. It’s no doubt that video consumption will continue to move away from traditional television to the internet-based arena of OTT/CTV. Advertisers would be wise to capitalize on this transition and ripe the benefits of OTT and CTV.


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