What’s the Difference Between Connected TV and OTT Advertising?

Connected TV vs. OTT

If your business is exploring ways to reach larger audiences in the digital age, then you’ve likely heard of Connected TV and Over The Top advertising, or CTV and OTT as they’re more commonly known. 

So, pop quiz: Are CTV and OTT interchangeable terms for the same thing? Don’t break into a cold sweat. We’ll give you the answer. They aren’t, and here’s the difference. 

Connected TV (CTV) Advertising refers to ads delivered to viewers through an internet-enabled television, such as a smart TV or a TV connected to a streaming device like Roku, Amazon Fire Stick, or Playstation/Xbox. 

Over The Top (OTT) Advertising refers to advertising content that is delivered to viewers via the internet, but unlike CTV advertising, OTT ads are also delivered through non-TV screens like smartphones, computers, and tablets. 

Why is this difference important? 

Frequently, marketing agencies claim to offer CTV advertising when they are actually deploying promotions through OTT ads. However, CTV offers two advantages that OTT does not. 

First, because CTV ads are exclusively delivered through televisions, your ads are non-skippable. Whereas, many OTT ads played on apps or YouTube videos can be skipped before the ad is completely aired. 

Second, CTV ads occur between your audience’s favorite TV shows on channels like Fox, NBC, CBS, HGTV, ESPN, CNN, Univision, and Travel Channel (to name a few). This means you reach an engaged audience who are more receptive to your message. 

You might be thinking, if CTV is superior, why do so many marketing companies leverage OTT instead? Price point. CTV requires a larger marketing spend than OTT advertising. Most small businesses can’t afford to allocate the necessary portion of their marketing budget to CTV. 

How is MOTUS CI changing CTV? 

As a marketing company serving hundreds of clients, MOTUS CI is able to collectively purchase CTV advertising space across its accounts. Further, because we specialize in hyper-targeting only your most high-opportunity prospects, we can more precisely allocate your marketing spend for CTV as opposed to spending large amounts on saturating entire trade areas.

And CTV offers incredible access to a rapidly growing audience segment. As of 2020, it’s estimated 80% of TV households in the US have at least one CTV. That’s an increase from the 74% level in 2018, 57% in 2015, and 24% in 2010, according to the Leichtman Research Group. Through a lowered pricepoint, MOTUS CI brings an enterprise-level marketing service to small businesses.

Learn more about CTV advertising from MOTUS CI here.