Connected TV buyer beware....know what you are buying.
As we talk with more clients about Connected TV, we are realizing that the term has different meanings to different people. And, some use the terms CTV and OTT interchangeably. We understand the confusion. The TV industry is evolving and ever changing. But, before you purchase CTV or OTT, please understand what you are buying. Here are some plain language explanations about the differences.
WHAT IS OTT?
“Over-the-top” content refers to any online content that you can stream via a screen connected to the internet, whether a TV, laptop, mobile phone, etc. The OTT term commonly refers to video-on-demand platforms, but also can apply to audio streaming.
OTT devices are any device that is not desktop, laptop, or mobile, but is used to consume OTT content. Examples include Smart TVs, Apple TVs, Chromecast, PlayStation, Xbox, Amazon Fire sticks, Roku and more.
WHAT IS CTV?
CTV stands for connected TV and is just another term for a television that has an ethernet connection or can connect to the internet wirelessly, via an OTT device (Smart TV, Apple TV, Chromecast, Roku, etc.).
So, in a nutshell...
OTT Content is delivered via an OTT Device through a CTV Screen.
OTT is the supply of content over an IP stream, and CTV is the device with which you can watch the content. CTV is simply a screen for consuming IP delivered content consumed through an App.
Adding more confusion to the conversation, several cable and TV stations are starting to get into the OTT Advertising space. And when they present their OTT capabilities, they focus on only their core streaming apps and channels, versus the remaining vast programmatic inventory that’s available on the market. Cable companies sell ads in this gated content world, and advertisers assume they are buying Connected TV. But they are not.
True Connected TV is delivered to a precise audience. True CTV uses the same first party, third party, and re-targeting tactics as Digital Programmatic Campaigns, reaching ideal customers.
With True CTV you can also set frequency caps at the household or individual level, to manage how often viewers see your ads and minimize wasted impressions.
True CTV reaches viewers of premium Publisher and Network channels, Content Distributors, as well as Live Entertainment and Sporting Events. We’re talking about 1,000’s of channels.
So, before you purchase Connected TV, please ask: Is this True, Programmatic CTV?
Are you able to publish on a Large Premium Network of streaming channels and streaming apps? A good platform with an expansive list should have at least 750 to 1,000 streaming channels, allowing you to reach and follow your core audience across more channels.
Can you target by Device Type, ensuring your ads are playing on the large TV in the house? These ads are generally watched by groups of 2+ and have completion rates above 95%.
Can you set a Frequency Cap at the household level? This is a huge source of efficiency within your buy. Whether buying a content distributor like Hulu, content owner like ESPN, or live event inventory, you should be able to limit your impressions at the household level.
At the end of the day, the single most important factor for evaluating a partner is transparency and control. Providers must ensure that they are able to both control frequency, device type, and what inventory they buy against, as well as verify that information with Reporting.
For more information about True, Programmatic Connected TV please contact us. We can simplify and streamline the process for your agency or marketing team.