Breaking Down CTV & OTT

A Must Include in your 2023 Marketing Mix

Connected Television

Connected TV, or “CTV,” refers to the actual hardware used to attain the streaming signal. Whether it is an Amazon Fire Stick, Roku, streaming TV or gaming console, each of these delivers streaming video content over the vast ecosystem of CTV networks.


“OTT” is short for Over The Top and refers to the delivery of the content to the devices.

Services like Netflix (2023), Hulu, Amazon Prime and network delivered services like Disney and Peacock are all considered OTT.

Some may think the actual content is “over the top,” which it very well may be, but it really refers to the layering of the content on top of the connection coming into the household. It can be delivered over the internet or viewed on different devices like the ones mentioned above.

CTV and OTT advertising can reach many viewers beyond the scope of linear TV which refers to standard broadcasting transmissions through cable, satellite or antenna. The increase in OTT and CTV viewership allows the advertiser to target their audience with the utmost precision during a specific time in viewership.

Although the two terms are not interchangeable, when it comes to advertising the terms are relatively the same. Both deliver a user controlled viewing experience and utilize user registration data to target consumers.

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According to Nielsen,* CTV advertising has seen significant growth in recent years, driven by the increased adoption of streaming services and the shift away from traditional TV viewing.

In 2020, CTV accounted for over 50% of all streaming video ad impressions, up from around 30% in 2018.


Nielsen also states that CTV advertising allows for more targeted and personalized advertising, as it can be delivered to specific audiences based on their viewing habits and demographics. Additionally, CTV advertising can be tracked and measured more effectively than traditional TV advertising, providing more accurate data on ad performance and viewer engagement.

Audience Harvesting

A Marketer’s Dream. A Human’s Nightmare.

Nick Simard, founder + CMO, The IMG Portfolio

Understanding the Digital Information Flow…Yikes!

Definition3Media Partners with the top intelligence platforms and data partners to ensure that your advertising hits the correct target.

We accurately track cross-platform engagement and “follow” your custom audience

Some of the Key Performance Indicators tracked include:

  • Website Traffic
  • Online Conversions
  • App Downloads
  • Session Duration
  • Foot Traffic to Specific Locations

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Imagine you are walking down the avenue in Manhattan and you are passed by a cab. Not hard to imagine in NYC, duh!

  1. Accurately track the performance of each of your campaigns via mobile device IDs, allowing advertisers to: 
  2. Estimate campaign reach
  3. Measure the incremental lift 
  4. Website traffic
  5. Online conversionsApp downloads
  6. Website session dwell time Location-specific foot traffic

What Is CTV Advertising?

You can reclaim advertising space and control of your brand messaging with connected TV advertising.

The digital universe is the ideal place for delivering your brand’s messages to consumers in a variety of ways. The Internet is universal in its capability to deliver communications from place to place – and to nearly any device. 

Internet-connected smart TVs are opening up a new, cutting-edge marketing channel – connected TV advertising. Internet-connected TV is any device that can stream content via the internet. 

Consumers can receive your brand’s advertising through internet-capable TVs, video game consoles, Blu-ray disc players, and other streaming devices. The connected TV is the merging of the internet and web 2.0 capabilities into a new generation of smart TVs. CVT is a hybrid of television and computer technology.

These devices feature an interface that resembles a smartphone. Because of this, connected TVs are often called smart televisions. Connected devices can access a range of streaming services, such as: 

  • Hulu
  • Netflix
  • Britbox
  • Pandora
  • Photos
  • Spotify
  • Tidal
  • YouTube

On the other hand, traditional televisions, or linear TV, can only receive media broadcasts. New generation smart TVs, however, enable consumers to engage with interactive media, internet TV and video on demand (VOD)content. 

Consumers now have a wide range of new entertainment options. This latest update of television showcases the progress of the medium. 

You can deliver your brand’s messages through almost all of the applications and devices used by consumers today, and you’ll still have access to traditional TV advertising. 

Linear television doesn’t support internet-connected engagement. You can’t use it to transmit digital ads like you can with a CTV powered device. With CTV you can reach consumers with your advertisements, and with precision  timing.

Who’s Using Smart TV Advertising?

Now, over half of U.S. consumers use their smart TVs with Apple TV, Roku or gaming platforms. That’s the equivalent of 164 million consumers who have access to videos via their smartTVs, gaming systems or streaming sticks.  Experts forecast that this number will expand to over 204 million consumers by 2022. 

North America isn’t the only region that is feeling the impact of connected TV advertising. In the UK, Japan and Germany, CTV penetration will rise past the 50% mark over the next two years. 

Connected TV advertising is becoming a vibrant platform that marketers can use across a variety of applications and services. And it is streamed right into the living rooms and bedrooms of your ideal buyers.

Advertisers are hungry to capture the attention of younger demographics such as Gen Z and millennials. Research shows that 80% of consumers use devices such as their computer, tablet or smartphone to watch digital content. These viewing habits include texting as well as searching for information about actors, movies or shows.

Targeted TV Advertising for Your Business

Viewership across linear television is dropping, while the cost to advertise on television is rising. Connected TV advertising is a new channel that you can use to grow your audience. 

Many consumers don’t watch a second of live television unless it involves sports or news. As consumers gravitate toward smart TVs and other devices, this change in habits creates a unique opportunity to reach your audience with precision accuracy. 

Data-enabled devices allow you to track how consumers behave, what they buy and what they do. This wealth of information is an opportunity to learn about the nuances of your audience. And your brand can get more bang for your buck with CTV. Research shows that families with smart TVs consume entertainment with at least 2 to 3 people in the room. This means that your brand will receive more impressions per advertisement as smart TVs become more popular. Over time, your cost per impression will drop drastically. By 2022, industry watchdogs expect the vertical to generate $80 billion. 

Ad targeting is one of the top benefits of connected TV advertising. When consumers use their smart TVs, they must log in using a password or a social media account. This process uses third-party data that includes geolocation information, ZIP Codes, interests, device information, language preferences, online behavior and other defining characteristics.

On Target, Every Time

Your connected TV advertising is a bit different from internet advertising. The main difference is that your visual media will require a higher resolution. 

Brands often overlook the importance of making memorable content. Your advertisements must deliver a compelling visual hook if you want to convert viewers on their smart TVs. Other than that, CTV advertising is relatively the same as programmatic marketing.

Imagine your ideal customer is women between the ages of 25 to 35 with children and an above-average income. Targeting this group will be as simple as choosing the right options on your CTV advertising dashboard. 

As the campaign runs, it will analyze the data it receives from devices, such as smart televisions, smartphones, laptops and tablets.

For example, this data analysis will return results, such as: 


Smartphone #1
Is used by a man that is a specific age and income level 

Laptop #1
Is used by a woman between the ages of 22 to 36 years old

Laptop #2
Is used by a child between the ages of 1 to 8 years old 

This type of analysis will show that the household is the ideal candidate for your good or service.

Your CTV advertising platform will continue to collect information about the consumers who view your advertising. An algorithm will determine the content that is viewed by the family members. After that, it will deliver advertisements accordingly.

CTV advertising supports many brand messages across nearly all internet-connected devices. It’s a unique solution because it meets both the supply and demand side of advertising needs. Connected TV advertising is flexible. API integrations make it easy for you to receive the maximum benefit out of every campaign.

With CTV advertising, data collection begins with gathering information about the activity of each device. Then, an algorithm will identify the primary content consumer in the household. In our example, that would be the woman in the family. The algorithm would deliver ads that cater to her wants and needs based on her online behavior.

Targeted TV Ads 

Connected TV advertising is the most current and the best use for data science.  Digital advertisers can see with great clarity  the impact and results of their marketing campaigns.

Data science takes the “what ifs” out of marketing. Now, marketers know in real-time how their messaging is performing. 

Advertisers can learn about their consumers with specificity and accuracy. They can collect information about consumers across all digital touchpoints. With this information, they can gather an all encompassing picture of their consumers’ online habits.

Marketers now have an accurate measurement of how their campaigns conform with CTV. Gone are the days where brands had to make guesses about consumer habits based on their last touchpoint. Television can’t even come close to providing this type of information.

With this a new advertising science has emerged. Television attribution identifies the contribution of connected TV advertising and consumer behavior. .It’s just like tracking consumer behavior while using smartphones or computers. Television attribution enables brands to make informed decisions.

Decision-makers  now know exactly what works – and what doesn’t. They can tell when people watch television, what they watch and what they watch it on. Most importantly, television attribution enables your brand to measure return-on-investment accurately.

There are many ways to measure consumer behavior. Whatever the method, internet connectivity makes it possible to collect huge amounts of information about your potential buyers and existing customers.

As a result, smart TVs are revolutionizing the advertising industry. Not only can they enable you to analyze your consumers at an organic level, but they  also allow your business to instantaneously adjust its focus. As consumer tastes change, you can switch up your marketing strategies in real-time, thanks to connected TV advertising.

Television advertising is typically a long-term campaign. Connected TV advertising is changing the game entirely. As a result,businesses may have to rethink their long-term marketing strategy.

Build Your Brand

This kind of information is meant to satisfy your curiosity BUT its main objective is to make more money $$$$$$$. It takes time to learn about, understand and implement new concepts so let us know if you would like to discuss CTV with a member of the OMG Media Team.

If you want to improve the performance of your marketing campaigns, then  it is time to make a move. You can uplift your brand by adding connected TV advertising to your marketing plan. With persistence and a legitimate strategy, connected TV can help you to realize a positive, sustainable return-on-investment.

*Nielsen is a global measurement and data analytics company that provides data and insights on various industries, including television and digital advertising. According to Nielsen, Connected TV (CTV) advertising refers to the delivery of video ads to viewers through internet-connected devices such as smart TVs, streaming devices (e.g. Roku, Fire TV, Apple TV), and gaming consoles.

Learn More from Our Chief Marketing Officer

A Short Call to Discuss
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