OTT Vs CTV (Connected TV): What Definitions You Need to Know in 2025
Published On December 3rd, 2024 How To
Did you know that the average time spent on watching Over The Top (OTT) video content has reached around 62 minutes a day in 2020, a 23% rise from the past year?
Earlier, video content was consumed via traditional TV and cable boxes. In a traditional TV setup, sound & picture was converted into a signal & then transmitted through the air.
With the rise of OTT (Over the Top) services, video content is consumed without traditional cable setup or satellite-TV services.
OTT services upload the content on their respective video on demand platform and users can access it with the aid of the internet.
The global OTT industry values more than $170 billion in 2020 highlighting that many people have ditched traditional TV services worldwide.
Read on to know more about OTT & CTV (connected TV) services that are catering to the growing demand for video content by people.
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Table of Contents
What is OTT?
OTT is a type of media service that delivers video content to viewers directly via the internet. You can avail OTT services on a closed TV too via internet-enabled TVs or smart TVs.
OTT services can also be accessed via smartphones, personal computers, OTT TV boxes, etc. OTT content providers are also preferred by viewers for their rich and dynamic online content.
The main benefits of OTT services are as follows:
The main benefits of OTT services are as follows:
- They offer hassle-free connectivity. You only require a stable internet connection and a streaming device.
- Many millennials are hooked to video streaming websites. Online media have a huge loyal audience and can be used for advertising your brand/business. OTT TV app advertising is cheaper and more effective as compared to traditional TV advertising.
- OTT services provide a wide variety of content and users have the flexibility to watch their preferred video content.
- OTT services provide cheaper plans as compared to traditional TV plans.
The global OTT industry is predicted to grow at a CAGR (Compound Annual Growth Rate) of more than 25% from 2020 to 2027.
It is also predicted to become the future of advertising and promotion, especially for advertisers heavily dependent on using video marketing.
What is CTV?
Thinking of expanding your streaming services but wondering what connected TV is? Connected TV refers to internet-enabled TVs that are used to stream videos over the internet.
OTT devices, gaming consoles, etc. can also be connected to smart TVs to stream videos. CTV broadcasting providers offer streaming services with the help of web applications.
The key benefits of CTV are as follows:
The key benefits of CTV are as follows:
- CTV provides flexibility in watching media content to viewers as they can view their preferred content anytime.
- CTVs have disrupted the traditional TV services hence providing huge viewership. Connected TV is also economical as compared to traditional linear TV.
- The inventory and media content of CTV is generally non-skippable. This results in a high video completion rate.
More than a billion houses already prefer OTT & streaming devices over traditional TV services & referred to as cord-cutters.
The numbers are likely to increase significantly in the coming years thus paving way for more service providers.
CTV advertising has also attracted many businesses with its detailed real-time performance analysis.
Difference Between CTV and OTT?
OTT
- Some of the most popular OTT content players include Netflix and Amazon Prime Video.
- OTT includes digital content that can be delivered via CTV devices but vice-versa is not possible.
- The video content on OTT is skippable.
- OTT content can be viewed on any device like smartphones, laptops, desktops, etc.
CTV
- Some of the most commonly used CTV devices include smart-TVs, gaming consoles, fire sticks, etc.
- CTV is the online content being streamed on any device having an IP.
- The video content on CTV is non-skippable.
- CTV devices are specific like smart TVs, IPTV services, etc. You can stream OTT content with the help of the internet on CTV devices.
Are CTV and OTT the Future of Advertising?
Many OTT TV space providers are ad-based or set advertisements as their main priority.
Users can choose basic streaming plans which contain advertisements and premium plans which do not contain advertisements.
According to OTT statistics, a large number of users are happy to watch advertisements in between their digital content as compared to the ones opting for premium streaming plans.
This helps digital advertisers to tap the audience present on various OTT channels.
One should also be familiar with CTV vs OTT advertising before running digital marketing campaigns on these digital portals.
Connected TV providers offer streaming plans at lower prices as compared to traditional TV services. This compels users to cut the cord and opt for OTT and CTV options resulting in high ad viewership.
OTT & CTV platforms have a huge advertising inventory and also provide analytical details about ad viewership.
The advertisements shown by online app portals are also clickable thus leading to high conversion rates. Partnering with production houses, celebrities, connected TV companies, etc.
Can provide advertisers with more opportunities to tap the audience on CTV & OTT platforms.
OTT and Connected TV advertising help in reviewing the digital campaigns effectively via high-end analytics.
Transition of Viewers from Traditional TV to CTV & OTT Options?
Some of the prominent reasons for viewers opting for OTT and CTV instead of traditional TV are as follows:
- Traditional TV provides fewer choices to customers in terms of video plans. Customers end up paying for the channels included in a payment plan that they don’t even watch. OTT & CTV video plans are more diverse as compared to traditional TV services.
- OTT & CTV options provide digital content to viewers according to their preferred schedule.
- OTT & CTV online streaming provide various viewing options that are less expensive than traditional TV services.
- Digital advertisers have also shifted to OTT & CTV options due to a large target audience available on these engaging spaces.
How can I get started with CTV/OTT?
You will have to consider all the OTT & CTV elements to build a better service. From technical build to security features, you will have to focus on all the aspects.
Business owners should build an OTT platform and CTV streaming engine that lets them do bulk uploads with adaptive streaming so it can be delivered seamlessly to viewers.
Connected TV providers can help you in enhancing your business reach.
VPlayed can help you in building a perfect OTT platform/CTV entertaining hub via its multi-channel delivery and advanced security features.
VPlayed is one of the best-connected TV streaming providers in the market along with quality OTT services. One should also research OTT vs Connected TV setup for building a sustainable product.
Conclusion
You can provide faster playback and webcasting services to customers with the help of VPlayed that is among the top OTT solution providers.
A perfect OTT/CTV business provides effective video distribution and monetization options.
VPlayed has various features like metadata creation, geo-targeting, mobile broadcasting, etc.
That will help you in building a reliable OTT CTV media platform.
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Quite an insightful comparison of connected TV vs. over the top TV. Those who are interested in obtaining more unique opportunities through OTT and TV advertising will definitely benefit from this. I’m Interested to tap into OTT and CTV as a new source of inventories for my next campaign. I want to discuss more. Kindly send me the details via mail.
There is constant growth and evolution in the OTT and CTV industry. It might not be too far away when all traditional television services disappear. In any case, it will provide a tremendous opportunity for both connected TV providers and advertisers.
Well, those who wish to learn about OTT TV vs. connected TV will find this blog to be of great assistance. Thanks to the writer!
With the help of this blog post, we will look at the key differences between OTT and CTV, as well as advertising techniques from connected TV companies. Your key is very informative.
We are one of the leading media entertainment channel in the Europe region. Expertise in creating content across the region with different type of genre. Now planned to build a OTT platform to stream our content for the online users. Can you please tell which one will be the best for us in terms of features and business models, CTV or OTT? Thanks Advance