The world of media is changing rapidly and new trends may occur in a blink of an eye. If you are interested in creative advertising and fresh forms of content delivery, you have definitely met the terms CTV and OTT across the web. Confusion about CTV and OTT is common and people use these words interchangeably, which is a mistake. Indeed, they make a perfect ecosystem for video content distribution and consumption, but each plays its own role. Let us define these concepts and get all this straightened out.
What is CTV?
CTV is an abbreviation that stands for “connected television”. This is an interactive technology combined with different gadgets (smartphones, tablets, consoles, etc.) to access media content. Because of high interactivity and freedom of choice, CTV has changed the way people perceive content consumption and advertising.
This technology works to create a symbiosis between computers and Internet-devices, which provides users with an opportunity to consume personalized content. They reach on-demand video libraries, games, sports, social apps, and other entertainments with the help of smart TVs, and other portable and stationary devices connected to the global network.
CTV is perfect for entertainment as well as business. Precise targeting is something that makes CTV really special and desirable for advertisers. The technology uses third-party data to target the right users, considering their social status, preferences, age, gender, etc. This is why businesses find CTV/OTT advertising appealing: it allows brands to reach their target audience, deliver meaningful content to the right people, and track the efficiency of their efforts easily.
What is OTT?
OTT means over-the-top content. The term characterizes a rapidly developing model of interactive television. OTT services deliver real-time content independently from ISP providers. It allows customers to watch content they want from any spot on the planet. The difference between CTV and OTT lies right here – CTV stands for the resource for content consumption and devices, while OTT is a delivery mechanism. Being autonomous, OTT encourages creators and advertisers to stick to distribution platforms and use their resources smartly. These services are less expensive than cable or satellite TV, which makes them more appealing for both viewers and businesses.
OTT is a pretty wide technology that is not limited to online television. Still, video content stays the most popular type of OTT service. Here is how it works: the signal is received over the world web and watchers get content directly from content owners, so no third-parties (as well as extra fees) are involved. Users access content directly through their applications or OTT TV boxes, connected to computers or smart TVs. The popularity of these services is impressive. According to Advanced Television statistics, the number of OTT services in the USA has doubled since 2014 – now it accounts for 300 unique services.
CTV vs OTT is a hot topic and users should mind the difference between these technologies. So, what is the key nuance here? CTV is a source of media that requires Internet-connected devices to display videos, movies, streams, etc. OTT is rather a delivery technology that works independently and doesn’t rely on providers (that is why it is called over-the-top). OTT can be perceived as a modern, customized, and less expensive analogue to cable TV. Personalized content on-demand can be reached via a CTV system and OTT technology.
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