Connected TV and Over The Top : Everything You Need to Know 

March 30, 2022

Filed in: Marketing

With a growing trend of “Cord-Cutters”, canceling their cable and satellite subscriptions and “Cord-Nevers” who have never subscribed to a traditional TV service, advertisers have had to shift their targets from linear (or traditional) television to Connected television (CTV) and Over The Top (OTT) ads to reach a new generation of consumers.


Connected TV and Over The Top


When to use Connected TV & Over The Top


With 50% of marketers saying programmatic TV, Connected TV and OTT are “top of mind” you may be wondering if CTV & OTT are right for your business. 


You should consider using CTV & OTT if:

  • You’re looking to drive brand awareness or drive traffic to your website.
  • You want big-screen exposure for your brand, in a more targeted way compared to traditional TV ads.
  • You have high quality video content that tells your story. 


Over the Top (OTT)


OTT or “over the top” of traditional network providers, refers to streaming services that deliver video content on demand, via the internet. Popular OTT services include Disney +, Netflix and Hulu, but it also includes hundreds, if not thousands, of channels or apps like Tubi, Roku TV, Pluto and IMDB. 


The primary difference between OTT and CTV is that OTT content can be consumed on multiple screen sizes, not just Smart TVs & Gaming Systems. 


These apps are also available on Smart TVs or through devices like Roku and Amazon Fire Stick – so a potential audience won’t just see your content on small screens.


OTT Advertising Benefits


  • Higher engagement and retention: OTT content ads are not skippable and are typically limited to 90-120 seconds. With a shorter ad experience vs. traditional cable, consumers are more likely to watch and retain brand content vs. linear tv spots. 


  • Ads are served across multiple devices, so you can reach customers on any platform or screen size.


  • Advanced targeting options, like behavior and interest targeting and geo-targeting.


  • OTT reporting data can help you make better marketing decisions by providing data about whether or not an ad was viewed and if that individual visited the brands website after watching the content. 


  • Brands can strategically select the ad platforms and publishers they want consumers to see their ads on so they can reach  consumers across various apps and platforms and don’t waste money on outlets that their customers don’t frequent. 


Connected TV (CTV) 


Simply put, CTV is OTT programming streamed through internet connected TV – whether that’s a Smart TV with built-in internet access or through a streaming device like Amazon Fire TV, Amazon Fire Stick or Roku. Gaming consoles such as XBox, Playstation and Nintendo Switch are also examples of CTV. 


Helping to drive viewers to CTV has been YouTube which, of late, has been prioritizing CTV over other screens. Both Nielsen and Comscore rank YouTube and Netflix as the leaders in time spent viewing streaming content on CTVs. eMarketer says YouTube CTV viewers grew by nearly 63% in 2020 and over 50% of YouTube content is now viewed on CTV.


Content consumed on a CTV device may come from the same apps or services that OTT ads are served. 


In the United States there are expected to be an estimated 105.3M Connected TV households by 2021, representing 81% of U.S. households (eMarketer, 2020).


Connected TV Advertising Benefits 


  • Connected TV offers a cost-effective way to reach a TV audience compared to traditional TV spots and it is more convenient for customers, who still have access to premium programming.


  • Advertisements showcased via Connected TV reach millennials and the growing percent of the population that have canceled their cable or satellite TV subscriptions. 


  • Connected TV also offers the ability to measure results, such as video completion rates and impressions delivered, as opposed to traditional TV. 


  • Connected TV continues to gain popularity – 80% of households have at least one CTV device (more than cable TV), while the average number of connected TV devices per household is 4.1.


Ready to get started?

At Koi-Fly we can help create branded videos that drive awareness and that are strategically designed for streaming audiences.

Whether you’re looking for help in creating a strategy, building campaign creatives or are ready to jump in, Koi-Fly has your back. Contact us to speak to an expert, today.

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