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Tubi Advertising Ultimate Guide: How it Works & Ad Costs
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OTT vs CTV Advertising: Which one is best?
If you’re running ads on streaming platforms, you’ve probably wondered:
OTT (Over-the-Top) ads work across multiple devices (TVs, phones, laptops), while CTV (Connected TV) ads are full-screen, unskippable, and only on Smart TVs.
But which one actually delivers better results?
In this blog, I’ll break down:
✅ How OTT & CTV ads work (so you don’t waste your ad budget).
✅ 5 key differences that affect cost, targeting, and engagement.
✅ How to choose the best option for your business.
What is OTT Advertising?
OTT (Over-the-Top) advertising means showing ads on streaming platforms that people watch using the internet, instead of through cable or satellite TV.
These ads appear on platforms like Netflix (with ads), Hulu, Amazon Prime Video, and YouTube TV.
Unlike CTV (Connected TV) ads, which only show on Smart TVs, OTT ads can be watched on multiple devices, including smartphones, tablets, laptops, and Smart TVs.
This makes OTT more flexible and allows advertisers to reach people wherever they watch content.
How Does OTT Advertising Work?
OTT ads are delivered through internet-based streaming services and are inserted into content that people watch on-demand. They can appear:
- Before the video starts (pre-roll ads)
- In the middle of the content (mid-roll ads)
- After the video ends (post-roll ads)
Unlike traditional TV ads, OTT ads can be targeted based on user data.
Advertisers can choose to show their ads to specific age groups, locations, or interest groups.
Here are a few types of OTT platforms:
| Model | Description | Examples |
|---|---|---|
| SVOD (Subscription-Based Video on Demand) | Viewers pay a monthly fee to access content, sometimes with ads. | Netflix, Disney+, HBO Max |
| AVOD (Ad-Supported Video on Demand) | Content is free, but viewers must watch ads. | Hulu, YouTube |
| Hybrid Models | A mix of both paid subscriptions and ads. | Peacock, Amazon Prime Video |
Pros and Cons of OTT Advertising:
| OTT Advertising Pros and Cons | What It Means for You |
|---|---|
| ✅ Highly targeted ads using audience data. | You can retarget users based on their behavior across multiple devices. |
| ✅ Cross-device reach (TVs, phones, desktops, tablets). | Your ads can follow users across platforms, improving brand recall. |
| ✅ Lower entry cost than traditional TV advertising. | Great for small businesses looking for affordable video ads. |
| ❌ Ad fraud risks (bot traffic, invalid impressions). | You need to use fraud detection tools to prevent wasted ad spend. |
| ❌ Ad fatigue due to repetitive placements. | Be sure to rotate ad creatives frequently to keep engagement high. |
Pros:
- Precise Targeting & Segmentation: Marketers appreciate the ability to target specific demographics or interests on streaming platforms, which is harder with broad TV broadcasts.
- Detailed Analytics & Targeting Data:
- OTT campaigns come with digital metrics (views, completions, etc.) that can help advertisers gauge performance and audience response in closer to real-time.
- Advertisers can also tap into first-party or third-party data to improve efficiency and attribution in OTT campaigns.
One Reddit user said-
- Higher Viewer Attention:
- Viewers tend to stay engaged during OTT ad breaks, and advertisers can manage frequency to reduce over-exposure.
- This can make OTT buys more efficient at reaching audiences compared to traditional TV.
Cons:
- No Click-Through or Immediate Engagement:
- Because OTT ads run on TV screens, users typically can’t click them.
- This means OTT campaigns often lack direct interaction (no click-throughs), making success harder to gauge in the short term compared to online banners or social ads.
A programmatic ad buyer highlighted-
- Measurement & Attribution Challenges: Several advertisers mention that tracking OTT performance is tricky.Alt text: Cons of OTT advertising
OTT advertising is a powerful way to reach audiences beyond traditional TV, offering precise targeting, lower costs, and cross-device visibility.
However, advertisers need to be mindful of ad fatigue and fraud risks.
In the next section, we’ll explore CTV advertising and see how it compares to OTT.
What is CTV Advertising?
CTV (Connected TV) advertising means running ads on Smart TVs and streaming devices like Roku, Fire TV, Apple TV, and gaming consoles (Xbox, PlayStation, etc.).
- OTT ads can be watched on phones, tablets, laptops, and TVs, but CTV ads only play on Smart TVs and streaming devices.
- CTV ads feel more like traditional TV ads because they are full-screen and usually unskippable.
- Ads appear on streaming platforms like Hulu, Peacock, Tubi, Pluto TV, and ESPN+ while people are watching shows or movies.
How Does CTV Advertising Work?
CTV advertising involves delivering video ads through internet-connected televisions. Here's how it functions:
- Ad Delivery: Ads are integrated into streaming content on platforms accessed via CTV devices. These ads can appear before (pre-roll), during (mid-roll), or after (post-roll) the main content.
- Targeting: Leveraging data-driven insights, advertisers can target specific demographics, interests, or behaviors, ensuring ads reach relevant audiences.
- Interactivity: Some CTV platforms support interactive ad formats, allowing viewers to engage directly with the advertisement, enhancing user engagement.
Pros of CTV Advertising:
- High Reach & Completion Rates: A digital marketer emphasizes that CTV ads can reach a broad audience and that viewers often watch the ads to completion, increasing brand exposure.
- Advanced Targeting:
- One experienced CTV marketer notes that compared to linear television, CTV offers more precise targeting and better reporting/analytics.
- (They do caution, however, that this comes with higher costs, as discussed later.)
- Inherent Viewability:
- In CTV, video completion rates (VCR) and viewability are naturally high because ads play on screen in full.
- This Reddit user suggests focusing on metrics like unique reach, ad frequency, and brand lift, since virtually all CTV ads are seen by viewers (making viewability less of a concern than in web/mobile ads).
Cons of CTV Advertising:
- Not a Direct-Response Channel:
- A programmatic buyer with years of CTV experience stresses that CTV works better for upper-funnel goals (like awareness or consideration) rather than immediate sales or lead generation.
- Direct conversions from a CTV ad are rare, given the inability to click the ad and the complex path to purchase.
- Higher Costs (CPM) Than TV:
- Many practitioners note that CTV impressions cost more on a per-thousand basis.
- Advertisers should be prepared to pay a premium for CTV’s targeting and on-demand environment.
- Platform Fragmentation:
- An ad operations expert explains that the CTV landscape is fragmented across devices and apps (Roku, Amazon Fire TV, smart TVs, etc.)
- The fragmentation introduces complexity in tracking and may require using multiple tools or demand-side platforms to manage a campaign comprehensively.
Knowing the pros and cons makes it easier for advertisers to decide if CTV fits their marketing strategy.
OTT vs. CTV Advertising: 5 Key Differences Explained
OTT and CTV both run on streaming platforms—but they serve different purposes.
OTT ads can appear on multiple devices, while CTV ads only show on Smart TVs.
OTT gives advertisers flexibility and lower costs, while CTV offers a premium, full-screen experience with higher engagement.
To make the decision easier, let’s break down the five biggest differences between OTT and CTV in terms of reach, targeting, ad formats, costs, and best use cases.
OTT vs. CTV: 5 Key Differences
| Factor | OTT Advertising | CTV Advertising |
|---|---|---|
| Where Ads Appear | Available on Smart TVs, mobile phones, tablets, and computers. | Limited to Smart TVs & streaming devices (Roku, Fire TV, Apple TV). |
| Audience Targeting | More precise—advertisers can target based on age, behavior, interests, and retargeting data. | Limited targeting—often based on household-level data instead of individual users. |
| Ad Formats & Engagement | Offers skippable, non-skippable, interactive, and clickable ads. Works well for performance-driven campaigns. | Full-screen, non-skippable ads that mimic traditional TV commercials, but not clickable. |
| Ad Costs (CPM) & ROI | Lower CPMs, making it budget-friendly for brands that need wide reach. Great for small businesses. | Higher CPMs because ads appear in premium streaming content. Best for brands with larger budgets. |
| Best Use Cases | ✔️ Direct-response campaigns (retargeting, lead generation). ✔️ Wider audience reach across multiple devices. ✔️ More affordable advertising costs. | ✔️ Brand awareness & high engagement on TV screens. ✔️ Premium ad placements on top-tier streaming services. ✔️ TV-like ad experience for big brands. |
Choosing between OTT and CTV isn’t about picking one over the other—it’s about knowing which one fits your goals best.
Some brands prioritize targeted, cost-effective campaigns, while others need premium, high-impact placements on Smart TVs.
To make the right choice, you need to consider your budget, audience, and campaign objectives.
In the next section, we’ll break it down further—when should you choose OTT, when is CTV the better option, and which one delivers the best ROI?
Is OTT Better Than CTV?
Now: Which one delivers better results?
The answer depends on what you need from your ad campaign.
- If you're focused on cost-effective reach and performance tracking, OTT is a great choice.
- If you're looking for high-quality, immersive ads on TV screens, CTV is the way to go.
Here’s a clear comparison to help you decide:
When to Choose OTT vs. CTV Advertising
| Best For | OTT Advertising | CTV Advertising |
|---|---|---|
| Ad Budget | ✔️ More affordable, lower CPMs. | ❌ More expensive, higher CPMs due to premium placements. |
| Where Ads Appear | ✔️ Works on TVs, mobile phones, tablets, and desktops. | ❌ Only works on Smart TVs & streaming devices. |
| Audience Targeting | ✔️ Precise targeting (age, behavior, interests, retargeting). | ❌ Limited targeting, mostly based on household-level data. |
| Ad Experience | ❌ Can be skippable, sometimes displayed in smaller formats. | ✔️ Full-screen, non-skippable ads that look like TV commercials. |
| Best For | ✔️ Performance marketing (lead generation, retargeting, direct-response). | ✔️ Brand awareness & high engagement campaigns. |
| ROI Comparison | ✔️ Better for performance-driven campaigns—allows tracking and retargeting. | ✔️ Better for high-impact branding—premium ad placements, high retention. |
Most advertisers don’t limit themselves to just one.
Many combine OTT and CTV to maximize reach and impact—using OTT to target the right audience and CTV to deliver an immersive, high-quality ad experience.
If you’re planning a well-rounded streaming ad strategy, blending both can give you the best results.
Let’s see how.
How to Advertise on Streaming Platforms
Running ads on OTT and CTV platforms is easier than it seems.
Whether you want cost-effective targeting (OTT) or high-impact TV ads (CTV), follow these simple steps to launch your campaign.
Steps to Launch an OTT or CTV Ad Campaign
| Step | What to Do |
|---|---|
| Step 1 | Decide if your campaign is for brand awareness, lead generation, or retargeting. This determines whether OTT or CTV is the better choice. |
| Step 2 | Use a self-serve ad platform like Vibe.co for quick setup or a programmatic DSP like The Trade Desk for more control over bidding and targeting. |
| Step 3 | Choose your audience: OTT targets individuals based on behavior, interests, and location, while CTV targets households watching on Smart TVs. |
| Step 4 | Create 15-30 second, high-quality videos with a clear call-to-action (CTA) like “Visit our website” or “Shop now” to drive engagement. |
| Step 5 | Start with a test budget, then scale up based on performance. OTT is usually cheaper, while CTV costs more per impression but offers premium ad placements. |
| Step 6 | Track impressions, video completion rates, and conversions. If performance is low, adjust targeting or test different ad creatives. |
By following these steps, you can run a campaign that reaches the right audience and delivers real results.
Final Verdict: OTT vs. CTV – Which One Is Best for You?
Choosing between OTT vs. CTV comes down to what you need from your ads.
| If You Want... | Go With OTT | Go With CTV |
|---|---|---|
| Lower costs & flexible targeting | ✅ | ❌ |
| Premium TV ad placements | ❌ | ✅ |
| Cross-device reach (mobile, desktop, TV) | ✅ | ❌ |
| Non-skippable full-screen ads | ❌ | ✅ |
| Better tracking & retargeting | ✅ | ❌ |
Some advertisers use both—OTT for targeting the right people and CTV for creating a strong visual impact.
If you're ready to start advertising on streaming platforms, Vibe.co makes it easy.
Whether you’re launching your first OTT campaign or running high-impact CTV ads, you can set up and manage everything in one place with Vibe.co.
FAQs About OTT vs. CTV Advertising
1. Is OTT cheaper than CTV?
Yes, OTT ads are usually more affordable since they run across multiple devices, while CTV ads have higher CPMs due to premium placements on Smart TVs.
2. Can I run the same ad on both OTT and CTV?
Yes, but ad formats may differ. OTT supports skippable, interactive, and clickable ads, while CTV ads are full-screen and non-skippable.
3. Which one is better for retargeting, OTT or CTV?
OTT is better for retargeting because it allows advertisers to target users based on their behavior across multiple devices, while CTV mainly targets households.
4. How do I measure the success of OTT and CTV ads?
You can track impressions, video completion rates, and conversions. OTT provides better tracking and retargeting data, while CTV is great for brand awareness and engagement.
5. Can small businesses afford CTV advertising?
CTV ads cost more per impression, so small businesses often start with OTT for lower costs and broader reach before scaling up to CTV.
