OTT vs CTV Advertising: What's the Difference & Which is Right for You?
Confused about OTT vs CTV advertising? Learn the key differences, how they work together, and which streaming ad strategy is best for your business goals.
Introduction
If you're exploring streaming TV advertising, you've probably encountered two confusing acronyms: OTT and CTV. Are they the same thing? Different? Does it matter which one you choose?
The short answer: OTT and CTV are closely related but technically different—and understanding the distinction will help you make smarter advertising decisions.
Quick Definitions
CTV (Connected TV) = The Device
Any television that connects to the internet, including smart TVs, streaming devices (Roku, Fire Stick), and gaming consoles.
OTT (Over-The-Top) = The Content Delivery Method
Streaming content delivered directly over the internet, "over the top" of traditional cable or satellite TV infrastructure.
Think of it this way:
- CTV = The TV you watch on
- OTT = The streaming service you watch (Netflix, Hulu, YouTube TV)
What is CTV (Connected TV)?
Connected TV is the hardware—the actual television or device that connects to the internet and allows streaming.
CTV devices include:
Smart TVs
- Samsung Smart TV
- LG Smart TV
- Sony Bravia
- Vizio SmartCast
- TCL Roku TV
Streaming Devices
- Roku (all models)
- Amazon Fire TV Stick
- Apple TV
- Google Chromecast
- Nvidia Shield
Gaming Consoles
- PlayStation 4 & 5
- Xbox One & Series X/S
- Nintendo Switch
87%
of U.S. households own at least one connected TV device, and the average household has 3.5 CTV devices.
What is OTT (Over-The-Top)?
Over-The-Top refers to the method of delivering video content directly over the internet, bypassing traditional cable, broadcast, and satellite television platforms.
OTT platforms include:
Subscription Services (SVOD)
- Netflix
- Disney+
- HBO Max
- Apple TV+
- Amazon Prime Video
Ad-Supported Services (AVOD)
- Hulu (with ads)
- Peacock (free tier)
- Paramount+
- Pluto TV
- Tubi
- The Roku Channel
Live TV Streaming
- YouTube TV
- Sling TV
- FuboTV
- Hulu + Live TV
Why it's called "Over-The-Top": The term comes from the idea that content is delivered "over the top" of traditional cable infrastructure. Instead of needing a cable box and cable subscription, viewers access content directly via the internet.
OTT vs CTV: The Key Differences
| Aspect | CTV (Connected TV) | OTT (Over-The-Top) |
|---|---|---|
| Definition | The device/hardware | The content delivery method |
| Examples | Smart TV, Roku, Fire Stick | Hulu, Netflix, YouTube TV |
| Focus | Where you watch | What you watch |
| Advertising Context | Ads displayed on TV screens | Ads delivered via streaming services |
| Measurement | Device-level tracking | Platform-level tracking |
| User Experience | Big-screen viewing | Streaming content experience |
How OTT and CTV Work Together
Here's where it gets simple:
OTT content is watched on CTV devices.
When you watch Hulu (OTT platform) on your Roku (CTV device), you're experiencing both OTT and CTV simultaneously.
The advertising flow:
- Viewer turns on their CTV device (smart TV or Roku)
- Viewer opens an OTT app (Hulu, Peacock, Pluto TV)
- Viewer starts watching streaming content
- Ad break occurs in the content
- Your commercial plays on their CTV screen via the OTT platform
This is why advertisers often use "CTV advertising" and "OTT advertising" interchangeably—they're two sides of the same coin.
OTT Advertising vs CTV Advertising: What's the Practical Difference?
In the advertising industry, these terms are often used interchangeably, but there are subtle differences in how they're discussed:
When People Say "CTV Advertising," They Usually Mean:
- Ads displayed on television screens (as opposed to mobile or desktop)
- Focus on the big-screen viewing experience
- Emphasis on living room, lean-back viewing
- Premium, TV-quality ad experience
When People Say "OTT Advertising," They Usually Mean:
- Ads delivered through streaming platforms
- Can include mobile and desktop viewing (not just TV screens)
- Focus on the streaming delivery method
- Broader term that includes all streaming ad formats
The Reality:
Most advertising platforms (including Smart TV Ads Co) offer "CTV/OTT advertising" as a combined service because:
- You're buying ads that appear on CTV devices
- Those ads are delivered via OTT platforms
- The targeting, delivery, and measurement work the same way
- The viewer experience is identical
Which Should You Choose: OTT or CTV Advertising?
The answer: You don't have to choose! They work together.
When you work with a CTV/OTT advertising platform like Smart TV Ads Co, you're automatically getting both:
- Your ads appear on CTV devices (the hardware)
- Delivered through OTT platforms (the streaming services)
- Reaching viewers in their living rooms on the big screen
Ready to launch your CTV/OTT campaign?
Get Started TodayFrequently Asked Questions
Is OTT the same as streaming?
Yes, OTT is essentially streaming. Any video content delivered over the internet (bypassing traditional cable/satellite) is considered OTT.
Can I do OTT advertising without CTV?
Yes! OTT advertising can also appear on mobile devices, tablets, and desktop computers when people watch streaming content on those devices. However, CTV (TV screens) typically delivers better results due to larger screen size and focused viewing.
Is YouTube considered OTT or CTV?
YouTube is an OTT platform (streaming service). When someone watches YouTube on their smart TV or Roku, it becomes CTV advertising. When watched on mobile or desktop, it's OTT but not CTV.
Which is more expensive: OTT or CTV advertising?
Since they're typically the same thing in practice, the cost is the same. CTV/OTT advertising typically costs $16-28 CPM, which is 20-40% less than traditional TV advertising.
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