With the rise of on-demand entertainment, streaming services have transformed how audiences experience media. Viewers now have the freedom to watch on their own schedule, on any internet-enabled device, and from virtually anywhere. For brands, this shift presents a unique opportunity to reach audiences in innovative ways.
OTT and CTV advertising open doors for brands to engage with their target audiences on streaming platforms that they trust and enjoy. But what is CTV and OTT advertising and how can each boost brand awareness and loyalty?
In this guide, we’ll break down everything you need to know, from the differences between OTT and CTV to optimizing both types of campaigns with MediaMax’s proprietary MaxIQ Intelligent Targeting and custom digital design strategies.
What is CTV?
A connected TV (CTV) refers to any TV set or console that’s connected to the internet and used for streaming video content. CTV allows viewers to access on-demand content via apps, websites, and streaming services. Research shows that 69% of US households access CTV content. Viewers may use many different types of devices to access CTV. Examples include:
- Smart TVs
- Set-top boxes
- TV sticks
- Gaming consoles
What is OTT?
Streaming content can be viewed anywhere on any internet-enabled device. That’s where OTT services come in. OTT stands for Over The Top and refers to any streaming service or platform that supplies content via the internet—in other words, content providers deliver their services directly, bypassing traditional broadcast and cable systems.
So, if your target audience is watching Hulu on a TV, computer, phone, or tablet, they’re using OTT services. MediaMax specializes in helping marketers place adverts on these platforms utilizing a “pay per view” approach, delivering excellent return on ad investment (ROAS).
What is the Difference Between CTV and OTT?
Now that we know what CTV and OTT are, how are they different from each other? The main difference between the two lies in device type. CTV ads appear only on internet-connected TVs, while OTT ads can reach viewers on televisions as well as on phones, tablets, and desktops.
MediaMax creates custom digital marketing strategies tailored to small and emerging luxury brands. We incorporate both OTT and CTV approaches, utilizing each’s unique features. Let’s look at how OTT and CTV strategies can be applied and analyzed to elevate your campaigns.
Device-Specific Targeting Capabilities
CTV ads appear on a single internet-connected television, so everyone in the household sees the same ad. By contrast, OTT ads can reach viewers on individual devices. This approach allows brands to target individuals within the same household separately, based on their viewing preferences. In either case, our expertise in Designated Marketing Areas (DMAs) can prove pivotal in optimizing campaigns based on demographics, location, and viewer preferences.
Measurement and Analytics
Measuring the effectiveness of your campaign is typically achieved via attribution, which tracks user interactions and conversions within CTV vs. OTT services. This helps you understand how viewers are engaging with ad content on various devices. When partnering with MediaMax, you can tap into powerful analytical tools that provide rich, granular data regarding CTV, mobile, and desktop devices for a much more detailed understanding of ad performance.
Choosing the Right Strategy
So, which road should your brand take: CTV or OTT? The most effective plan will likely include a mix of OTT/CTV, meaning you can access viewers across device types and cater to varying preferences.
For example, big-screen CTV content, while highly visually engaging, is not as interactive as OTT content, which provides advertisers with opportunities to drive traffic to their brand’s website or app with one click or swipe.
Budget considerations will also likely play a role. Smaller-screen OTT ads are typically less expensive than broadscale CTV ads.
Both CTV and OTT offer unique benefits, and understanding when to use each format is crucial. Here’s some guidance on how to decide between CTV vs. OTT.
When to Use CTV Advertising
CTV advertising is particularly advantageous in the following scenarios:
- Household-level targeting: Unlike OTT, CTV excels at reaching multiple viewers within a household simultaneously, making it ideal for campaigns that aim to engage families and shared audiences.
- Visual impact for brand presence: The large-screen format of CTV provides an ideal space for visually impactful ads, making it perfect for campaigns aiming to strengthen brand presence and create memorable impressions. High-definition visuals and rich sound can help capture viewer attention and leave a lasting impact.
MediaMax has successfully implemented CTV strategies for clients in various sectors, resulting in increased viewer interaction and brand awareness.
When to Use OTT Advertising
OTT might be a better option in the following situations:
- Targeting on-the-go consumers: For busy professionals and younger individuals who consume content across multiple devices, an OTT approach facilitates real-time connection wherever and however they are watching.
- Broad reach campaigns: For brands looking to maximize visibility, OTT platforms provide unparalleled opportunities to reach diverse audiences and ensure as many people see key messaging as possible.
MediaMax has a proven track record in effectively leveraging OTT platforms to enhance campaign reach. By utilizing advanced targeting strategies, we help brands engage audiences through tailored messaging that resonates across multiple devices.
Why You Should Start Using OTT and CTV Advertising in Your Marketing Strategy
The growing importance of CTV and OTT in modern-day marketing cannot be overlooked. All good advertising campaigns meet your target audience where they are, and most of them are somewhere streaming content at least once a day. Here’s a list of compelling reasons to incorporate CTV and OTT into your advertising strategy.
Enhanced Reach
With more households moving away from traditional cable TV, cord-cutting has become widespread. Additionally, many younger viewers have never paid for cable or satellite TV subscriptions, preferring streaming platforms instead, making OTT/CTV advertising strategies essential for engaging Millennial and Gen Z audiences.
Precise Targeting
Without knowing exactly who is watching, linear TV adverts can be hit-and-miss. In contrast, OTT and CTV allow advertisers to target and reach potential consumers with precision. At MediaMax, we provide access to detailed viewer data, ensuring brands can reach specific audiences using segmentation techniques based on demographics, location, interests, and more.
Cost-Efficiency
OTT and CTV advertising offer cost-effective ways to connect with highly targeted audiences, allowing brands to optimize their ad spend and maximize return on ad spend (ROAS). MediaMax helps brands reach audiences with precision, minimizing wasted impressions and delivering impact.
Higher Engagement
Better engagement leads to greater ad recall and higher conversion rates. By incorporating impactful interactive formats like clickable ads and QR codes, we can drive much higher levels of engagement.
Measurable Results
Robust measurement tools enable continuous campaign optimization in real-time, helping you understand performance metrics and tweak strategies on the fly to maximize impact. MediaMax clients receive detailed reports, helping advertisers make data-driven decisions to fine-tune their approach for maximum impact.
Cross-Device Targeting
Reaching consumers across a range of devices is vital in today’s multi-platform environment – especially because 83% of Americans report second screening during viewing sessions. MediaMax can help advertisers capitalize on this with OTT and CTV ads that drive engagement and conversions across multiple touchpoints.
Flexibility in Ad Formats
OTT ads typically appear before, during, or after shows, while CTV ads are integrated into streaming content on connected TVs. MediaMax excels in helping our clients select and create varied ad formats that drive measurable action, allowing brands to optimize campaign impact.
Audience-Based Buying
Both CTV and OTT approaches facilitate audience-first strategies, enabling brands to connect with ideal customer profiles (ICPs) in new and innovative ways. Our experience running targeted campaigns based on granular data, detailed analytics, and in-depth performance forecasts ensures precision every time.
Brand Safety
Brand safety is an essential consideration, and we work hard to ensure our client’s ads are never associated with inappropriate content. With MaxIQ, our advanced targeting technology, we ensure optimal contextual placement for every ad.
Future-Proofing
OTT and CTV data will likely inform more advertising decisions going forward than ever before. As consumption habits and marketing standards evolve, partnering with an industry leader like MediaMax helps position you for success.
Choose the Right Partner for Your CTV and OTT Campaigns with MediaMax
MediaMax provides big agency expertise at an attainable price point, providing the support and guidance you need to succeed. Our proprietary MaxIQ technology ensures your ads are highly targeted, helping you reach and engage with audiences across streaming TV, digital platforms, and more. Let’s create advertising campaigns that resonate. Contact us today to discover how we’ll elevate your brand.