OTT vs CTV: Understanding Key Differences - Simulmedia

OTT (over-the-top) and CTV (Connected TV) have become popular buzzwords in the marketing industry. However, there is a prevalent misconception that these terms can be used interchangeably when, in reality, they are not the same thing.

The Key Difference: OTT vs CTV

OTT is the content delivery method. CTV is the device.

OTT (Over-the-Top) refers to HOW content is delivered—streaming video over the internet, bypassing traditional cable or satellite providers (like Netflix, Hulu, Disney+). CTV (Connected TV) refers to WHERE that content is watched—on internet-enabled television devices (like smart TVs, Roku, Apple TV, or gaming consoles).

Simple Example:

When you watch Netflix:

• On your smart TV → OTT content on a CTV device ✓
• On your phone → OTT content on a mobile device (not CTV)
• On your laptop → OTT content on a computer (not CTV)

All three use OTT delivery, but only the TV viewing is CTV

The History Behind CTV and OTT

Today, OTT and CTV are anything but interchangeable — but that's not how it's always been.

OTT began as a catch-all term for any non-traditional TV. Media buyers considered OTT to be any premium video delivered outside of or "over" a set-top box. That meant any and all devices could be considered OTT. For instance, streaming Netflix through your phone or on your smart TV would both fall under OTT.

This all changed in 2021 when the MRC officially changed the definition of OTT to help separate the term from connected TV, which has exploded in popularity over recent years. eMarketer has found that time spent with connected TV devices will make up one-fifth of viewers' digital time in 2023.

Essentially, the MRC distinguished between "CTV" as the medium (content consumed on a television screen via internet delivery) and "OTT" as a reporting category (encompassing various nontraditional TV video consumption).

The distinction allows for more precise measurement of video consumption on connected devices, such as smart TVs, streaming devices, and gaming consoles. It recognizes the unique viewing experiences and behaviors associated with watching content on these devices.

CTV vs OTT: Key Differences for Advertisers

Viewing Environment

• CTV: Shared/Co-viewing - Multiple people often watch together
• OTT (Mobile/Desktop): Individual viewing - Usually one person per device

Screen Experience

• CTV: Lean-back viewing on large screen
• OTT (Mobile/Desktop): Active viewing on smaller screens

Attribution

• CTV: Cross-device challenges - Viewers see ads on TV but convert on other devices
• OTT (Mobile/Desktop): Direct attribution - Actions often happen on same device

Measurement

• CTV: Pixel-based tracking with limited JavaScript/SDK support
• OTT (Mobile/Desktop): Full JavaScript and SDK capabilities

Targeting

• CTV: Household-level data, contextual targeting
• OTT (Mobile/Desktop): Individual user data, behavioral targeting

Ad Attention

• CTV: Higher completion rates due to TV viewing behavior
• OTT (Mobile/Desktop): More likely to skip or multitask

Creative Format

• CTV: TV-quality video ads optimized for big screen
• OTT (Mobile/Desktop): Various formats including display, video, interactive

Why These Differences Matter

For Campaign Planning:

• CTV requires different creative strategies optimized for shared viewing
• Attribution models must account for cross-device behavior
• Frequency capping works differently due to household vs. individual targeting

For Budget Allocation:

• CTV typically commands premium CPMs due to the TV-like experience
• Better completion rates can offset higher costs
• Mix of CTV and mobile/desktop OTT can maximize reach efficiency

Key Takeaways

You now know the key differences between over-the-top and connected TV. Need a quick reminder? We've compiled our key takeaways below.

• Definition: OTT is the streaming delivery method; CTV is the TV-connected device
• Scope: All CTV uses OTT delivery, but not all OTT happens on CTV
• Measurement: CTV faces unique challenges with co-viewing and cross-device attribution
• Targeting: CTV uses household-level data while other OTT uses individual-level data
• Industry Standard: The 2021 MRC definition formalized these distinctions for consistent measurement

Ready to plan your next CTV campaign?

Knowing the difference between OTT and CTV is critical for any advertiser looking to navigate the streaming landscape with certainty. With this knowledge in your wheelhouse, you're ready to take on your next big CTV campaign with confidence.