CTV vs. OTT: The Key Differences for Advertisers

As Connected TV (CTV) continues to revolutionize the advertising landscape, app marketers are finding new opportunities to connect with engaged audiences. CTV’s rapid growth, coupled with its precise targeting and cost efficiency, makes it a powerful tool for boosting ROI. This blog dives into the differences between OTT and CTV, explores the unique benefits of CTV advertising. Whether you’re looking to refine your ad strategy or expand into new channels, understanding CTV is critical to staying competitive.

Understanding OTT and CTV: A Guide for App Marketers

When diving into the world of streaming advertising, it's crucial to differentiate between OTT (Over-the-Top) and CTV (Connected TV), as they refer to distinct aspects of the streaming landscape.

What is OTT?

As we’ve written about before, OTT refers to the delivery of video content over the internet, bypassing traditional cable or satellite providers. Platforms like Netflix, Hulu, Disney+, YouTube, and HBO Max are examples of OTT services that provide video-on-demand content across various devices, including smartphones, tablets, laptops, and smart TVs. Essentially, OTT is the method by which streaming content is delivered to viewers.

What is CTV?

CTV specifically refers to internet-connected devices that allow users to stream content on a television screen. This includes Smart TVs, as well as devices like Apple TV, Roku, Amazon Fire Stick, and gaming consoles like PlayStation or Xbox. CTV provides the large-screen, traditional TV viewing experience, but with the added capabilities of internet-based streaming.

Key Difference Between OTT and CTV

The primary distinction lies in their scope: OTT refers to the content delivery process across all devices, while CTV focuses on television screens connected to the internet. For example:

  • OTT viewing: Watching a Netflix show on a smartphone or laptop.
  • CTV viewing: Streaming a Netflix show on a Smart TV or Roku device.

Advertising on OTT vs. CTV

  • OTT Ads: These can appear across various devices, such as pre-roll ads on YouTube videos viewed on a smartphone or tablet. For example, a skincare brand might show a 15-second video before a beauty tutorial on YouTube.
  • CTV Ads: Exclusively shown on internet-connected TVs, these ads play during streaming shows or movies. For instance, a streaming platform like Hulu might display a commercial for a food delivery app to viewers watching a cooking show on their Smart TV.

The Takeaway: OTT vs. CTV

While OTT provides broader device reach, CTV captures the attention of relaxed, engaged viewers on the big screen. This often leads to higher ad recall and stronger brand impact.

Understanding this distinction can help brands maximize ROI by leveraging the right platform for their advertising goals.

5 Benefits of CTV Ads Over OTT Ads

The Rapid Rise of CTV

In 2025, Connected TV (CTV) continues to see explosive growth, reshaping the advertising landscape. According to eMarketer, by 2026, CTV will account for 20% of daily media consumption among U.S. adults—up from 11.5% in 2020. Despite this growth, CTV still only attracts 8.1% of total ad spend. This creates a unique opportunity for advertisers to capitalize on an underutilized channel. As viewership outpaces ad spend, brands can tap into the expanding inventory and engaged audiences that CTV offers. Here are five key benefits of advertising on CTV:

  1. Higher Attention and Lower CPMs With the abundance of ad inventory created by the rise of ad-supported tiers on platforms like Amazon Prime Video, CTV offers advertisers significantly lower cost-per-thousand impressions (CPMs). Combined with higher viewer attention on large screens, brands achieve better ROI compared to other formats. For example, Hulu maintains lower CPMs while delivering strong ad recall due to its higher ad load.
  2. Engaged, Relaxed Viewership CTV audiences often watch content in a lean-back setting on larger screens, leading to more engaged and attentive viewers. This contrasts with OTT ads viewed on smaller screens where distractions are more frequent. With fewer ads per hour compared to linear TV, CTV ads feel less intrusive, further enhancing user engagement.
  3. Precise Targeting Capabilities CTV enables advertisers to utilize advanced targeting options, such as contextual targeting, demographic segmentation, and lookalike audiences. These capabilities help brands reach highly relevant audiences, making campaigns more efficient and measurable. For instance, partnerships between streamers and retail media networks are driving hyper-personalized ad experiences.
  4. Cross-Screen Synergy CTV is ideal for integrating with cross-screen strategies, allowing advertisers to retarget users across devices like mobile phones, tablets, and desktops. For example, a user who views a CTV ad for a mobile app could later receive a personalized in-app notification, seamlessly connecting the ad journey.
  5. Scalability and Expanding Inventory The rapid growth of free ad-supported streaming TV (FAST) channels, such as Samsung TV+ and Pluto TV, ensures a steady increase in ad inventory. These platforms allow advertisers to scale campaigns affordably while tapping into niche audiences. As ad-supported tiers become more common, brands can benefit from the expanding pool of viewers embracing these options.

By leveraging these benefits, CTV ads provide app marketers with a powerful channel to amplify reach, engagement, and ROI. To discover more strategies for optimizing your CTV campaigns, read YouAppi’s whitepaper on CTV Retargeting.

Key Takeaways

  • OTT vs. CTV Defined: OTT refers to content delivery over the internet, while CTV focuses on internet-connected TVs like Smart TVs, Roku, or gaming consoles.
  • Ad Formats: OTT ads span multiple devices, while CTV ads are specific to large-screen, TV-like environments, offering higher ad recall.
  • Growth Opportunity: By 2026, CTV will account for 20% of daily media consumption among U.S. adults but just 8.1% of ad spend—indicating untapped potential.
  • Key Benefits of CTV Ads:
    • Lower CPMs with higher viewer attention.
    • Engaged audiences in relaxed viewing settings.
    • Advanced targeting capabilities for precise ad delivery.
    • Seamless integration with cross-device campaigns.
    • Growing ad inventory with scalable options on FAST channels.
  • Actionable Insights: CTV provides app marketers with unmatched opportunities to amplify reach, drive engagement, and achieve measurable ROI.

Ready to take your app marketing to the next level? Explore YouAppi’s CTV Retargeting Solution to learn how we can help you boost engagement and ROI across screens. Or, contact our team today to discover how our advanced CTV strategies can power your campaigns!