OTT vs. CTV: What sets them apart?

9 min read·Nov 13, 2024

Are you trying to decide between OTT and CTV for your next campaign? You're not alone—advertisers everywhere are weighing these options.

You’ve probably heard these terms in meetings or read them in marketing articles. But what exactly makes OTT (Over-the-top) and CTV (Connected TV) different from each other? More importantly, which one should you focus on for your next ad campaign?

In this blog, we'll break down the following:

  • Why knowing the difference between OTT and CTV is crucial for modern advertisers like you?
  • Which platform gives you better targeting and stronger results?
  • And if CTV might be the best fit for your next campaign.

If you're looking to understand the differences between OTT and CTV and want to make sure you’re investing your advertising budget in the right place, keep reading!

What is OTT (Over The Top)?

OTT ( Over the top)

Let’s start with the basics. 

OTT refers to video content delivered online, bypassing traditional cable or satellite services.

You’ve definitely interacted with these OTT platforms before:

  • YouTube: The go-to for everything from how-to videos to music clips.
  • Netflix: The platform everyone turns to for binge-worthy shows and movies.
  • Hulu: Known for offering both live TV and on-demand shows.
  • Facebook and Instagram: Social media giants that deliver video ads and live streams right to your feed.

So, why does OTT matter?

OTT platforms are crucial because they meet your audience exactly where they spend their time—online. These platforms allow advertisers like us to reach people exactly where they spend most of their time—online. 

Whether it’s a cooking tutorial on YouTube or a new Netflix series, OTT delivers ads seamlessly between the content. 

Here’s why OTT advertising matters:

  • Wider audience: You’re reaching people who might not even own a traditional TV, but are always glued to their phones or tablets.
  • Interactive features: Some OTT platforms let users interact with ads, making them more engaging and memorable.
  • Flexibility: OTT platforms make it easy to pivot your strategy, whether you want to tweak your ad content, test different formats, or target a specific demographic.

It’s simple—OTT gives you more control over who sees your ads and when. 

And because you’re advertising on platforms, people are already glued to, like Facebook and TikTok, the chances of your message getting through are much higher.

Why do advertisers love OTT?

OTT isn’t just about reaching a huge audience. It’s about making an impact

Here’s why advertisers love OTT:

  • Wider reach: You can connect with people who may not watch traditional TV but are always on their phones or tablets.
  • Interactive: On some OTT platforms, people can engage directly with ads, making them more memorable.
  • Flexibility: Want to tweak your campaign on the go? With OTT, you can easily change your ads and target specific audiences.

OTT is clearly changing up the way ads are delivered and seen.

It gives you flexibility, control, and access to a massive audience all at once.

Now that you understand OTT, let’s move to CTV (Connected TV).

What is CTV (Connected TV)?

CTV (Connected TV)

Have you ever watched a show on a smart TV or used a device like Roku, Amazon Fire Stick, or even a PlayStation? That’s CTV in action. 

In simple terms, CTV is all about video content streamed directly to televisions connected to the internet. 

Unlike OTT, which works on multiple devices like phones and tablets, CTV is focused on the big-screen experience.

Where Can You Find CTV?

You’ve probably used these platforms for CTV:

  • Hulu: Offering live TV and on-demand content, with ad-supported plans.
  • Netflix (Ad-Supported Plan): Yes, Netflix now has an ad-supported tier, allowing advertisers to reach its massive audience.
  • Amazon Prime Video: Another popular service offering ad-supported options alongside its premium content.

These platforms attract viewers who sit down for longer periods of content, making it a great time to show ads that get noticed.

Why is CTV Growing So Fast?

People are cutting the cord on traditional cable TV. They’re switching to streaming services, which means more connected TVs in households. 

According to eMarketer, 60% of U.S. households now use CTV, and this number is expected to grow rapidly. 

Graph on Why is CTV growing so fast?

For advertisers like us, this is huge. You can reach millions who prefer streaming their favorite shows or movies over regular TV.

Here’s why CTV is quickly becoming a favorite among advertisers: 

  • Massive reach: As more households switch to streaming, CTV offers access to millions of engaged viewers.
  • Better engagement: When someone watches a show on a big screen, they’re more focused and less likely to skip or ignore ads.
  • Personalized ads: Platforms like Hulu and Amazon Prime offer ads tailored to each viewer. This means your ad is more likely to be relevant and memorable.

Why Advertisers Love CTV?

It’s clear why advertisers are choosing CTV. 

Let’s break down the key reasons:

  • Professional feel: Ads look and feel more premium on a big screen.
  • Precise targeting: Like OTT, you can target specific groups based on interests, location, or device type.
  • High ad completion rates: According to a report from Innovid, CTV ads have a 95% completion rate, meaning viewers are far more likely to watch your entire ad without skipping.

Now that you understand CTV let’s see how it compares to OTT. Which is better for your advertising strategy? Let’s find out!

OTT vs. CTV: Key Differences 

While OTT and CTV might seem similar, but they have key differences that can impact your ad strategy. Let’s compare them.

OTT vs CTV

Here are the five key differences that will help you find out the better one: 

Key DifferencesOTT (Over-the-Top)CTV (Connected TV)
Ad DeliveryThrough apps and browsers (e.g., YouTube, Facebook).Delivered on smart TVs and streaming devices (e.g., Roku, Firestick).
Audience TargetingTargets users on multiple devices (phones, tablets, desktops).Targets households based on viewing habits on smart TVs.
Engagement & ImpactLower engagement due to smaller screens and multitasking.Higher engagement on big screens, 95% ad completion rate (Innovid).
Cost EffectivenessGenerally lower cost, suitable for smaller budgets.Higher cost upfront, but often better ROI due to more engaged viewers.
Viewing ExperienceViewed on phones, tablets, and desktops, often during casual browsing.Watched on large screens in a more focused, relaxed setting.

Now that you know the main differences, it’s no wonder why CTV is preferred by advertisers. 

Still wondering why CTV is winning over so many advertisers? Let’s explore what makes it the top pick and why it could be the game-changer your campaigns need!

Why CTV is a Better Option for Modern Advertisers

Here’s why CTV is a better option for modern advertisers:

People remember ads on CTV better.
1. TV-Like Experience with Digital Perks
  • Longer ad views: CTV ads run on big screens, making people more likely to sit and watch.
  • Non-skippable ads: Unlike some OTT platforms, your ads can’t be skipped—meaning they’ll always be seen.
  • Less ad fatigue: Fewer ads mean viewers stay more engaged and less annoyed.

With CTV, you get the best of both worlds—ads that grab attention and keep people watching.

2. A Highly Engaged Audience
  • Focused viewers: People watching on their smart TVs aren’t distracted by their phones.
  • Premium content: Your ads appear during high-quality shows or movies—think Netflix, Hulu, or live sports.
500+ channel selection
  • 95% ad completion rate: Yes, most people watch CTV ads all the way through.

When people are more engaged, your ads make a bigger impact.

3. Personalized and Targeted Ads
  • Precise targeting: Reach viewers based on location, interests, or viewing habits.
Creating Targeted Campaign in Vibe
  • Relevant ads: Your ads fit right into what they’re already watching, making it more likely they’ll pay attention.

With CTV, you’re not just reaching a big audience—you’re reaching the right audience.

4. Cost-Effective with Better ROI
  • Higher upfront cost: Sure, CTV might cost a bit more at first.
  • Better ROI: But those non-skippable ads and engaged viewers mean your return is worth it.

The numbers don’t lie—CTV gives you more bang for your buck.

Now that you know why CTV is such a great option, let’s talk about how to use it to get the best results.

VIBE: Your Perfect CTV Advertising Solution

Getting your ads seen by fully engaged viewers is every advertiser’s dream, right? That’s exactly what VIBE does best. 

If you want your ads to pop up right when viewers are completely locked in on their screens, VIBE is the solution you’ve been looking for.

Vibe homepage

How Does VIBE Help You?

Curious about how VIBE works? Here’s why it’s great for you:

  • Pick where your ads show up: Want your ad to air during a web series or a big sports moment? VIBE lets you choose the best spot for your ad.
Pick where your ads show up.
  • Reach a premium audience: Your ads appear with high-quality content that people care about—think of it as the best possible ad space.
  • Smart targeting: With VIBE, you can focus on viewers who are most likely to be interested in your brand. There are no wasted ads—just the right people seeing your message.
Why is VIBE Perfect for CTV Ads?
  • Engaged viewers: People are already focused on their favorite shows. VIBE places your ads where they’re least likely to be skipped and most likely to be watched.
  • Better targeting: Want to reach families watching a movie or sports fans glued to a game? VIBE helps you connect with exactly who you need.
Vibe pricing
  • Cost-effective: You’re not wasting money on ads no one sees. VIBE makes sure every ad dollar is well spent by placing your ads in front of an engaged audience.

It’s like having the best seats in the house to show off your brand.

Your audience is tuned in, and your message lands right when they pay attention.

Conclusion

Whether you’re just getting into OTT or ready to step up with CTV, the future of advertising is clear—it’s all about engaging, TV-like experiences.

Final Thoughts on OTT vs. CTV
  • OTT: Affordable, great for mobile devices, but ads can be skipped.
  • CTV: Ads on big screens with non-skippable content, leading to higher engagement.
Why CTV and VIBE Are the Future of Advertising
  • CTV grabs attention: Ads appear while people are fully engaged, watching their favorite shows.
  • VIBE makes it easier: You control where and when your ads appear during premium content.

Whether you’re sticking with OTT or upgrading to CTV, one thing’s for sure—VIBE is your key to making a bigger impact.

Ready to take your ads to the next level? It’s time to give VIBE a try!

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