OLV vs. CTV: Main Differences to Know

Over-the-top (OTT) advertising—ads exclusively available via the internet—is a growing competitor to conventional broadcast advertising. Case in point: Ad spending in the OTT market is expected to reach over $93 billion in 2025, and that spending is expected to grow by nearly 8% year-over-year until 2029.

Businesses looking to dive into OTT can incorporate numerous specific channels into their strategies: options like Online Video (OLV) and Connected TV (CTV) advertising. 

But no video advertising strategy is complete without an understanding of OLV vs CTV. Knowing their differences is key to success for businesses looking to make informed decisions about where to allocate their budget for maximum impact.

What is online video (OLV)?

Online Video (OLV) ads are delivered across multiple digital platforms, including:

• YouTube.
• Social media.
• Streaming platforms (e.g., Netflix, Hulu, and Amazon Prime Video).

OLV technically falls under the umbrella of OTT, as OTT ads are only delivered via the internet. This differs from conventional broadcast ads which “air” over cable and satellite TV.

As online-exclusive content, OLV features different formatting and qualities than traditional broadcast ads. OLV content can also appear in multiple ways, including:

• Pre-roll – Pre-roll OLV ads play before other video content, like YouTube ads that play before the main video starts.
• Mid-roll – Mid-roll OLV ads break up video content, like Amazon Prime Video ads that appear in the middle of a streaming TV episode. 
• Outstream – OLV ads don’t have to appear in the context of streaming video; they can also appear in text articles or in social media feeds. 

Most importantly, OLV ads can play on any streaming device:

• Mobile devices (e.g., smartphones and tablets).
• Connected TVs (CTVs, sometimes called “smart TVs”).
• Computers.
• Internet-enabled gaming consoles.
• Streaming tools like Roku, Fire Stick, and Apple TV.

What is connected TV (CTV)?

Connected TVs (CTVs) are internet-enabled TVs; these “smart TVs” either use a browser function or preloaded streaming apps to access online video content. 

However, CTVs and CTV advertising are slightly different: CTV ads exclusively appear while streaming on a TV device, like the Netflix app on a smart TV. 

CTV ads are technically a type of OTT ad: Viewers can only see them while streaming via the internet, not while broadcasting conventional cable or satellite TV. But unlike other types of OTT ads, CTV ads are TV-exclusive. They don’t appear on smartphones, tablets, or computers. Instead, they “air” on:

• Smart TV streaming apps.
• Gaming consoles connected to a TV.
• Streaming tools (like Roku and Fire Stick) connected to TVs.

CTV ads often look and feel like traditional broadcast TV ads. However, many digital marketing services optimize CTV ads using viewer data, like demographic information and viewing habits. 

Key differences between OLV and CTV advertising

There are multiple distinctions to recognize in the OLV vs. CTV conversation—and TV-exclusive presentation is only one.

Delivery

Delivery is the primary factor that sets CTV advertising apart: Viewers can only see CTV ads on TV screens. 

OLV ads, on the other hand, can reach audiences via any kind of web-based video platform (including TVs). 

This difference in delivery is highly relevant for businesses. It impacts:

• Ad segmentation and targeting – TV viewers are a specific audience—one that a digital marketing agency can target with CTV ads. While they can certainly use digital tools to segment the TV viewer audience even further, this audience is already distinct from the OLV audience—viewers who can interact with an ad on any device. 
• Interaction potential – OLV ads can be highly interactive. They may be skippable or include clickable product carousels and other links, making them a compatible fit for mobile or computer viewers. CTV ads, on the other hand, typically aren’t skippable (though this isn’t always the case). 
• Formatting – OLV ads must be formatted and optimized for multiple platforms and screen sizes, from desktop social media feeds to ads in mobile browsers. While CTV ads must be formatted for different screen sizes, they only need to be optimized for one kind of device: a TV. 

Audience behavior

OLV and CTV audiences are distinct; so, naturally, they behave differently:

• OLV audiences can engage from multiple devices and platforms. They may be scrolling social media on their lunch break, reading news articles on the subway, or streaming an episode of reality TV in bed. 
• CTV audiences, on the other hand, are behaving like traditional TV viewers. They’re typically kicking back for longer viewing sessions and enjoying the more immersive experience offered by a larger screen (and TV accessories like soundbars). 

Since OLV audience behavior is so broad, businesses must rely on data collection tools to deliver relevant, impactful OLV ads. Understanding audiences’ demographics, browsing habits, and interests can help them hone in on more specific behavioral insights. 

But CTV ads rely on data collection for segmentation and targeting, too. Viewers’ most commonly used streaming services, their go-to genres, and their typical streaming hours can all help businesses deliver more relevant ads. 

Targeting capabilities

Speaking of targeting, capabilities vary between CTV and OLV. 

OLV advertisers typically use:

• Cookies – OLV advertisers can leverage viewers’ cookies—information from their other web activity—to gain insights into their interests and behaviors. 
• Interest targeting – Based on information gleaned from cookies, OLV advertisers can create and deliver content relevant to their target audience’s interests—ad content that’s relevant and aligned with users’ needs.

CTV advertisers, on the other hand, can use:

• Household-level data – CTV advertisers often must assume that multiple viewers use one household TV. So, while they may not be able to target as precisely as they could by collecting data from a personal mobile device, they can still offer ads relevant to multiple members of the household. 
• First-party insights – First-party data is information collected directly from users: In the case of CTV, relevant first-party data might include their media selections, typical streaming times, and chosen streaming platforms.

Benefits of OLV advertising

What makes OLV advertising a standout option for brands looking to grow? 

First, OLV advertising is highly flexible:

• Brands can reach users across multiple platforms, from Facebook to Amazon Prime Video. Anyone who spends any time online is a prospective OLV ad viewer. 
• Ad form is flexible, too: From long-form, mid-roll Hulu ads to quick, skippable content before a YouTube video, businesses have tons of formatting options in the OLV space. 
• OLV ads can be interactive, and a recent study showed that (on YouTube specifically) skippable ads increase users’ brand recall. After all, skipping an ad is a form of interaction—users still have to look at the screen to click the skip button. 

Plus, with more robust performance tracking options, OLV enables real-time optimizations based on engagement metrics: clicks, views, and conversions, to name a few.

Perhaps most importantly, OLV can be affordable. While premium ad slots that air during trending streaming shows can fetch a high price tag, OLV offers a lower-cost option brands can use to experiment with a new ad, target a new audience, or test a new engagement strategy. 

Simply put, OLV is accessible, flexible, and scalable—a perfect match for any brand looking to expand their awareness and reach new audiences.

Benefits of CTV advertising

Like OLV, CTV can be a highly impactful ad medium for growing brands:

• CTV easily aligns with storytelling – Traditional television ads offer a longer-form, visually immersive space for brands to tell their stories, whether they’re doing so via conventional broadcast TV or streaming TV. 
• Digital marketing offers precision – What traditional broadcast advertising lacks compared to CTV is precision. Even household-level data and first-party insights offer targeting potential that vastly surpasses that of the average broadcast ad. 
• Ads run to completion – Since skippable CTV ads aren’t the norm, brands can trust that viewers will watch their whole ad, start to finish. Longer-form ads plus a completion obligation equals maximum brand exposure. 

In addition, CTV ad placement still comes at a premium—a reality that’s usually reflected in ad production value. This combination communicates to viewers that brands advertising on their TV are sophisticated and credible. 

Plus, unlike traditional broadcast ads, CTV ads reach cord-cutters: households that ditch their conventional cable or satellite contracts for a streaming-exclusive lifestyle.

Which format is best for marketing goals?

Given the options, which route should today’s brands take—OLV or CTV?

• OLV is an excellent match for performance-driven campaigns. Brands focused on immediate engagement, retargeting, and direct conversions will likely value the interactivity potential of OLV ads. 
• CTV is better suited to brands looking to build awareness—perhaps via longer-form storytelling. In a more relaxed setting, brands can meet viewers where they are: at home, on their couches, and immersed in the TV experience. 
• A combined approach is the ultimate goal. Leveraging both formats can maximize a brand’s reach while maintaining engagement and conversion potential—a recipe for sustainable growth. 

Making the most of video advertising across OLV and CTV

In essence, both OLV and CTV offer a data-driven, modern approach to advertising. Allocating marketing spend effectively between (or across) OLV and CTV is the key to meeting campaign objectives and growing your brand. Of course, creative assets should also be tailored for each format: optimize length, messaging, and call-to-action elements according to the segment and viewing environment. 

Growth-focused brands looking to boost engagement with their advertising strategies can turn to Power Digital for all their digital marketing needs. With help from our team of marketing and advertising pros, today’s growing companies can track their campaign performance, collect audience insights, and refine their strategies to truly maximize their marketing ROI. 

Discover the future of streaming ads for your business with Power Digital.

Sources: 

Statista. OTT Video Advertising – United States. https://www.statista.com/outlook/amo/media/tv-video/ott-video/ott-video-advertising/united-states 

Amazon Ads. Online Video (OLV) Ad Specs. https://advertising.amazon.com/resources/ad-specs/dsp/video/online-video-ads 

Amazon Ads. Connected TV Advertising Explained. https://advertising.amazon.com/library/guides/connected-tv-advertising 

Norton. What Are Tracking Cookies and How Do They Work?. https://us.norton.com/blog/privacy/what-are-tracking-cookies 

LinkedIn. What Is Interest Targeting and What’s New?. https://www.linkedin.com/business/marketing/blog/linkedin-ads/introducing-interest-targeting 

Experian. How First-Party Data Improves Your Marketing. https://www.experian.com/marketing/resources/experian-marketing-data/first-party-data 

Journal of Advertising Research. A Comparative Analysis of Skippable Ads, Non-Skippable Ads, and Brand Placements: Evaluating YouTube Advertising Strategies. https://www.tandfonline.com/doi/full/10.1080/00218499.2025.2464276?src=exp-la