A Connected TV (CTV) is a device that connects to—or is embedded in—a television to support video content streaming. Different types of CTVs include Xbox, PlayStation, Roku, Amazon Fire TV, Apple TV, and more.
The rise of CTV and OTT has led to the phenomenon known as “cord-cutting,” which is the growing trend of customers canceling their traditional cable and satellite subscriptions in favor of only using these streaming or VOD formats.
Over-the-top (OTT) is the delivery of TV/video content directly from the internet. Users don’t have to subscribe to a traditional cable or satellite provider to access this content; they can watch this content on various devices—tablet, phone, laptop/desktop, television, etc. The video is delivered in a streaming or video-on-demand (VOD) format. Different types of OTT services include Netflix, Hulu, and Amazon Prime. Mass media and networks are also launching their own OTT services such as Disney+ and NBC’s Peacock.
Linear TV is a traditional system in which a viewer watches a scheduled TV program when it’s broadcasted and on its original channel. The program can be recorded via DVR and watched later. Linear TV still boasts the largest market; however, reach is fragmented due to the increasingly competitive TV landscape.
Over-the-top (OTT) and connected TV (CTV) devices are two very popular methods of accessing TV/video content, but they can be easily confused with one another. And the water gets especially murky when you throw in linear TV (traditional TV). Here are a few tips to help you understand the difference between connected TV (CTV), over-the-top (OTT), and linear TV so that you are speaking the same language as everyone else as you assemble your advertising strategy.
With OTT and CTV advertising, you can reach viewers beyond the reach of traditional Linear TV (i.e. cable, satellite, and antenna). This new audience includes a growing number of cord-cutters or those who don’t pay for standard cable or satellite services. The rise of OTT and CTV viewership provides more meaningful ways for you to engage at the right time with the right target audience at the right moments—bringing together the targeting precision of digital with the high impact of TV viewership.
There’s usually not one stand-alone metric that can determine if an ad or campaign is successful. Several metrics are required for a full view. Here’s a list to investigate:
|Reach||The number of unique users that saw the ad to understand where your budget goes to the nearest dollar.|
|Completion rate||How many times the advertisement was viewed in its entirety. Instead of just tracking the number of people who were exposed to an ad, this shows you how many people finished it—giving you more insight into how much of your message people were exposed to, how engaged they were, and if it resonated.|
|Audible rate||The number of impressions where the advertisement was audible for any period of time.|
|Viewability scores||Indicates whether or not a user can see the advertisement. This metric is measured differently by different platforms, but, typically the viewability of an ad is calculated if it’s watched for a few seconds and shows up on more than 50 percent of the screen space. Screen size also matters, with larger screens having higher viewability scores. So ads on TVs usually have higher scores than ads on mobile and laptops, reinforcing the captivity of the audience.|
|Attribution and attribution tracking||Proving the campaign/ad ROI by connecting viewership with the completion of an intended action, such as visiting a website, downloading an app, or going into a physical store.|
|Cost per thousand views (CPM)||Tells the cost of one thousand impressions but not necessarily viewable impressions or a thousand unique views. Instead, you should look at the cost per completed view which is more meaningful for the success of your campaign.|
|Cost per completed view||More meaningful than CPM in that it’s a ratio of the total cost of the campaign and total number of completed views.|
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Truly understanding who you’re reaching—and how often—across multiple platforms seems like an impossible task, but it doesn’t have to be. Read about the collaboration between iSpot and Moat Reach, and how the solution is addressing this market need.>
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