March 11, 2020

I worked in Cable Television for 13+ years and my team sold OTT and Traditional TV to 1,000’s of client over the last 5+ years. I know the space can be confusing and it changes quickly.

Let’s start with some definitions.

CTV – connected-TV

  • The Device used to watch the OTT content with internet services
  • Sample Top Devices - Smart TV, Apple TV, Roku, PS4, Xbox, Tivo, Nintendo, Vizio, Philips, Samsung, Sharp, Microsoft, LG, Sanyo, Toshiba, Sony
  • It is estimated that by 2020 more than 75% of families will have Connected TVs in the United States

OTT – Over-the top-streaming

  • Streaming Video Content
  • Example OTT Channels - Netflix, Hulu, Watch ESPN, Amazon Prime, HBO Now, Showtime, MLB.TV, Sling, DIRECTV

The Cord Universe

  • Cord Shaver – a person who cuts back pay tv subscription and channels
  • Cord Cutter – a person who canceled their pay tv subscription
  • Cord Never – a person who never had a pay tv subscription
  • Cord Loyalist – a person with a pay tv subscription
  • Cord Stacker – a person with a pay tv subscription and one or more streaming subscription. Fastest growing bucket!

OTT vs Traditional TV

The biggest difference between OTT and Traditional television is the way content is delivered to the viewer.  For OTT, a telecommunications service provider delivers across an IP network. For television, content is delivered from a cable and broadcast system. Smart TVs are both televisions and Connected TV devices.

Unlike traditional TV, OTT providers stream content directly from the internet. Ad-supported OTT allows networks to run digital campaigns: this means different households can see different ads based on what audiences they belong to (their demographics, buying habits, and other factors).

What are OTT Benefits?

TV is sold on rating points CPP or Cost Per Point. OTT is sold on impressions CPM or Cost Per Impression. OTT tends to be less expensive than television. If you keep the audience target broad, your CPM will be lower. The biggest advantage of OTT is its measurability. By using the targeting capabilities of OTT, you are spending your advertising budget in a more efficient way and seeing a better ROI.

Is OTT Measurable?

With OTT you get measurable results. You can measure the results of your campaigns with both digital and traditional metrics, including the completion rate for videos. OTT provides the same value that TV delivers with TV-like impressions (15 or 30-second spots) but with significantly higher engagement. CTV provides you the best of both worlds: the benefits of traditional television combined with the targeting of digital.

How do I get started on OTT advertising?

Getting started with OTT advertising can be confusing. Today we have every Cable, Broadcast and Radio Rep trying to sell us an OTT solution.  But not all OTT & CTV is the same.

Give us a call and we can review your options! We will SIMPLIFY it for you