OTT and CTV vs. Programmatic Video
Over the past decade, the acronym OTT (Over the Top) has become a significant topic of conversation in the digital advertising world. OTT is TV content distributed through an internet connection to be viewed on a mobile or desktop device. More recently, CTV (Connected TV) has entered the same conversation in the advertising world. CTV is a device connected to a TV or, in some instances, a Smart TV itself, think Apple TV or Roku, that delivers TV content but only viewed on a big screen.
Finally, there is programmatic video, which is part of a whole other marketing conversation. Programmatic video allows advertisers to target relevant users by bidding on video ad space on any device. In a world seemingly ruled by Netflix, Disney +, and Hulu, the average video consumer may see these acronyms interchangeably. However, to an advertiser, it is essential to understand the difference.
Like any advertising medium, there are pros and cons to OTT, CTV, and programmatic video. Programmatic video can be targeted granularly
through geography, demographics, even website browsing activity. There is much more inventory available in the programmatic video landscape, which allows for significant scalability. Plus, this type of video advertising does come with lower CPMs when compared to OTT or CTV.
By nature, video advertisements viewed on a larger screen with TV content are looked at as premium placements, but this is also one factor that drives up the cost of OTT & CTV. One of the drawbacks is also their lack of granular targeting that can be achieved with programmatic video. For the most part, OTT and CTV can only add higher-level targeting layers like age, gender, and household income.
If video advertising is a part of your marketing mix, it is crucial to find a partner who can run OTT, CTV, and programmatic video simultaneously to optimize the allocation of spend and maximize results.
