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OTT vs. CTV: Understanding the Differences and Maximizing Advertising Impact

  • The PDMI
  • May 20, 2025
  • 4 min read

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As streaming continues to dominate how consumers watch content, understanding the terms OTT (over-the-top) and CTV (connected TV) has become essential for marketers aiming to reach modern audiences effectively. While these terms are often used interchangeably, they refer to distinct concepts in the streaming and advertising ecosystem. In this guide, we'll break down the differences between OTT and CTV, explore advertising strategies for both, and introduce emerging trends and technologies that can help brands stay ahead.


What Is OTT?

OTT stands for "Over-The-Top" and refers to the delivery of video content via the internet without requiring users to subscribe to a traditional cable or satellite service. This includes content consumed through:


  • Streaming services like Netflix, Hulu, and Amazon Prime Video

  • Ad-supported platforms such as Tubi and Pluto TV

  • Devices such as smartphones, tablets, desktop computers, and connected TVs


Essentially, OTT is about how content is delivered and accessed — bypassing traditional distribution channels.


What Is CTV?

CTV, or "Connected TV," refers to any television set connected to the internet. This includes:


  • Smart TVs

  • Streaming devices like Roku, Amazon Fire Stick, Apple TV, or Chromecast

  • Game consoles such as Xbox or PlayStation


CTV is the device through which users can access OTT content. While all CTV content is OTT, not all OTT content is viewed on CTV.


OTT vs. CTV: Key Differences

Feature

OTT

CTV

Definition

Content delivery via internet

Internet-connected TV device

Devices Used

Phones, tablets, laptops

Smart TVs, streaming devices

Audience Experience

Often personal or mobile

Typically shared viewing

Ad Format Types

Pre-roll, mid-roll, banner ads

In-stream video ads

Measurement Challenges

Diverse device tracking

Improved household-level tracking


The main distinction lies in the delivery method (OTT) versus the device type (CTV). Understanding this difference helps advertisers craft better audience strategies and creative formats.


Advertising Strategies for OTT and CTV


OTT Advertising

  • Allows advertisers to reach viewers across mobile, desktop, and tablet devices

  • Ad formats include pre-roll, mid-roll, and interactive video ads

  • Ideal for reaching cord-cutters and mobile-first audiences


CTV Advertising

  • Primarily includes in-stream ads on large screens

  • Often non-skippable and viewed in a lean-back environment

  • Allows precise targeting at the household level using IP address, app usage, and behavioral data


Both OTT and CTV offer highly trackable and measurable options compared to traditional TV, but CTV has the advantage of better viewability and completion rates due to larger screens and more engaged audiences.


Advanced Attribution Models for OTT & CTV

Traditional attribution models often fail to account for multi-device journeys. OTT and CTV advertisers can benefit from:


  • Multi-touch attribution: Gives credit to multiple touchpoints throughout the conversion path

  • Data-driven attribution: Uses machine learning to assign value based on actual conversion data

  • Cross-device tracking: Helps identify users across TV and mobile to avoid duplicate impressions and optimize ad frequency


By using advanced attribution, advertisers gain better visibility into how OTT and CTV impact the broader funnel.


Understanding Co-Viewing Behavior

One unique feature of CTV is the prevalence of co-viewing: multiple individuals watching the same content together. This dynamic affects:


  • Ad creative: Ads should appeal to group settings rather than individual viewers

  • Measurement: Impression data must account for multiple viewers per stream, which can influence reach estimates and frequency capping

  • Targeting: Brands can consider family or household-level preferences when planning CTV campaigns


Accounting for co-viewing ensures advertisers aren’t underestimating campaign impact or misaligning creative with audience context.


How AI and Personalization Are Shaping the Future

Artificial intelligence is becoming integral to OTT and CTV performance marketing:


  • Predictive modeling: Anticipates which households are most likely to convert

  • Creative optimization: Automatically tests variations of headlines, visuals, and offers

  • Audience segmentation: Helps identify high-value viewer segments across platforms


AI enhances the efficiency of ad spend and enables marketers to deliver more relevant and impactful campaigns.


Integrating OTT and CTV into an Omnichannel Strategy

OTT and CTV should not operate in silos. Smart marketers integrate them into broader omnichannel campaigns, ensuring consistent messaging across:


  • Social media

  • Display

  • Search

  • Email marketing


This approach enhances user experience and improves attribution accuracy across platforms. For example, a user might first see a CTV ad and later engage with a retargeting ad on Instagram.


What Most Articles Miss: The Role of Viewer Intent

One topic rarely addressed in OTT vs. CTV comparisons is viewer intent. CTV viewers are usually in a passive, entertainment-seeking mode, while OTT viewers — especially on mobile — are often on-the-go and multitasking. This has major implications:


  • For CTV: Focus on storytelling and immersive brand experiences

  • For OTT: Keep ads concise, benefit-driven, and optimized for short attention spans


Recognizing the different user mindsets across devices allows for more effective creative execution.


Final Thoughts

OTT and CTV are two powerful pillars in the modern media landscape. While they share similarities, their differences — particularly in device use, audience behavior, and advertising tactics — make it crucial for marketers to understand how and when to use each. By combining data, attribution, personalization, and strategic integration, businesses can maximize the value of their streaming campaigns.

Understanding the nuances between OTT and CTV is no longer optional—it's essential for any brand looking to thrive in a digital-first world.

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