CTV and OTT advertising deliver to smart TVs.

OTT and CTV advertising capitalizes on the growing streaming segment

As more people choose streaming over traditional television, OTT and CTV advertising are giving advertisers a new place to focus advertising. This new wave of advertising is a cheaper and more targeted way to reach consumers than traditional linear TV.

Before diving into what makes streaming advertising different, it can be helpful to understand the acronyms used to describe these placements. There are three primary acronyms used: OTT, CTV, and ZTV. OTT stands for Over the Top, advertising that bypasses cable and satellite broadcasts and delivers ads to viewers through their internet connection. OTT ads are typically seen by viewers using streaming apps on smart TVs or streaming devices. CTV stands for Connected TV. This primarily refers to places like smart TVs but can also be used to describe advertising used on mobile phones, streaming devices, and game consoles. ZTV, or Zip Optimized CTV, refers to the type of targeting used.

The benefits of OTT and CTV advertising

Person browsing a streaming device.OTT and CTV advertising come with several benefits compared to linear television advertising. The first is targeting. Unlike linear, streaming ads target a more specific audience. Advertisers can create segments that include age, gender, location, interests, and more. OTT and CTV ads also allow for better result tracking. This includes online and in-person conversion tracking to more accurate impression reporting. OTT advertising offers high engagement rates, as viewers are often more attentive to content on digital platforms and have more ways to interact with the ad.

In addition to improved targeting, OTT and CTV advertising can be more cost-effective and provide a better return on investment (ROI) than linear advertising. One of the places you’ll see the most savings for OTT and CTV is ad creation. These ads are typically between 15 and 30 seconds, although they can be longer. You can also repurpose versions of the linear ads you are already running. OTT and CTV offer better conversion chances and a better ROI. They directly target those most likely to convert rather than a group who may not see the ad.

Adding OTT and CTV to your marketing strategy can improve your overall results. It gives you an additional group of people to target that you may not be able to reach elsewhere, and having advertising that appears like a linear commercial can increase the perceived legitimacy of a brand.

OTT  and CTV advertising represents a significant shift in how advertisers reach and engage with audiences. Advertisers can create more personalized and effective campaigns by leveraging the targeting capabilities and engagement opportunities. As consumer behavior continues to evolve, OTT and CTV advertising will play an increasingly important role in the future of advertising.

If you need help understanding OTT and CTV advertising, we can help. At ActiveData Digital Marketing, we are experts in helping you find the best advertising solutions for your business. Contact us or call (239) 465-0310 to learn more about incorporating streaming ads into your marketing strategy.

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