OTT vs. CTV: Key Differences Explained

Streaming is dominating the digital landscape. TVs connected to the internet (Connected TVs, or CTVs) now have more viewers than traditional broadcast channels as of Q1 2025. And yet, many advertisers are still exclusively marketing over broadcast.

Marketers looking to capitalize on this boom with streaming-specific ads have two options: 

1. Over-the-top (OTT) advertising, or running an ad that can be viewed on any streaming device (including smartphones, computers, and TVs).
2. Connected TV (CTV) advertising, or creating ads that play exclusively on TVs—not smartphones, gaming consoles, tablets, or computers. 

These options are interconnected but distinct. Understanding each one is key to optimizing video advertising strategies and maximizing reach. 

The following guide explores the OTT vs. CTV conversation in-depth to help brands understand streaming marketing services and choose their ideal channels. 

What is OTT (over-the-top) advertising?

Over-the-top (OTT) advertising is delivered over the internet—not via conventional broadcast methods like cable or satellite TV. 

Consumers can watch OTT content on any device, including:

• CTVs, or televisions connected to the internet (often called “smart TVs”).
• Smartphones and tablets.
• Computers.
• Gaming consoles with streaming apps.

If it has a screen and connects to the internet, a device can showcase OTT content—including ads. Since these ads can reach consumers on multiple platforms, they’re optimized for a broader array of devices and audiences. 

Consumers who use subscription services but still maintain broadcast access (via cable or satellite) may have noticed a trend: Ads that appear via broadcast channels don’t always appear in streaming ads. Why?

• OTT ads are separate products from broadcast ads; media buyers purchasing broadcast ad space don’t automatically get access to streaming ad space. 
• Not all businesses advertise in both spaces. And, if they do, they may run distinct ads in each channel (i.e., they optimize streaming ads for streaming audiences and broadcast ads for broadcast audiences).

What is CTV (connected TV) advertising?

Connected TV (CTV) advertising falls under the umbrella of OTT; CTV ads “air” exclusively over the internet. 

But there’s a key distinction between OTT and CTV: CTV ads only appear on TV screens, and they don’t appear on computers or mobile devices. 

Consumers may view CTV ads while using:

• CTVs (“smart TVs”).
• Roku.
• Fire Stick.
• Apple TV.
• Gaming consoles connected to TVs (not computer monitors).

CTV ads are like traditional broadcast TV ads—except they’re only delivered over the internet. As such, CTV ads often look, feel, and perform like conventional broadcast ads. They typically don’t feature interactive content (like clickable links), for example. 

However, like OTT ads, CTV ads can “air” on multiple streaming platforms: Netflix, Hulu, and Twitch, just to name a few.

Key differences between OTT and CTV

While the main difference between OTT and CTV ads lies in TV screen exclusivity, this leads to other key distinctions between each ad type.

Specificity

OTT advertising has a broader scope: OTT ads can appear on any streaming service and on any streaming device. 

CTV ads, on the other hand, have a narrower scope. 

Why does this matter to advertisers?

• Formatting – Marketers looking to leverage OTT must optimize their ads for multiple screen sizes: from small smartphone screens to huge TVs. CTV-only ads only require TV-specific formatting. 
• Segmentation – By using CTV advertising, brands can reach a specific audience segment: people who own and watch conventional TVs. This segment has unique product and service needs. For instance, they could be targeted for products like TV wall mounts, entertainment centers, or TV accessories like sound bars. 
• Interactivity – While OTT ads that display on computers or touchscreen devices can feature interactive content (like scrollable product carousels or clickable links), these interactive features don’t always make sense for CTV ads.

All of these have the potential to shape ad content. CTV ads, for example, need to motivate consumers to pick up another device (like their smartphone) to learn more about a product or service. On the other hand, OTT ads may not feature content that resonates with a TV-specific audience. 

Audience behavior

OTT vs. CTV advertisers must also recognize potential behavioral differences among each audience, like:

• Session length – While TV viewers typically settle in for longer-term watching sessions, small-screen viewers (people streaming from smartphones or tablets) may watch for shorter periods of time (during public transit rides, for instance). 
• Attention – While streaming on a TV, viewers can still access another screen: their mobile device. This realization is the justification behind “second-screen” experiences, content created specifically for distracted TV viewers. Mobile device viewers, on the other hand, are already using their smartphone or tablet to watch content—they can’t use it as a second screen without pausing. 
• Attention to quality – Some audience segments may turn to TV (a large format) to “take in” higher quality visuals and sound; ad content tailored to TVs should, perhaps, expect audiences to be more discerning about content quality. 

Ad formats

As mentioned, OTT ads can offer more interactive features—they’re designed for the active viewer using a touchscreen or a mouse and keyboard. 

But there’s another type of interaction that OTT ads can offer: skipping an ad. 

A 2024 study revealed that skippable ads:

1. Are viewed as less intrusive by consumers.
2. Potentially enhance consumers’ brand recall.

While this study specifically explored ads on YouTube (not streaming-specific platforms), these findings may still be applicable to OTT advertisers. After all, any skippable ad gives viewers the option to bypass it and requires viewers to interact by clicking the skip button.

CTV ads typically aren’t skippable. Instead, they’re designed for more passive viewing, where viewers may use an ad break to stand up, grab something from another room, or scroll on their smartphone. They may also be longer-form, like conventional broadcast TV ads. 

Advantages of OTT advertising

With all of the above in mind, why are advertisers leaning into OTT?

• Wide reach – OTT ads can reach viewers on multiple devices: smartphone users, TV viewers, and even desktop users streaming from just about any platform. This kind of wide-reaching connection can drive overall brand exposure across audience segments.
• Granular targeting – With today’s tech tools, advertisers can collect information from streaming devices about viewer behavior, interests, and habits—data that a powerhouse digital marketing agency can use to develop niche audience segments and highly targeted ads. 
• Flexibility – With OTT, advertisers can achieve brand awareness, create performance-driven campaigns, and track specific engagement metrics—three huge benefits in one ad channel. 

OTT also offers advertisers unique opportunities to leverage interactivity—and interactivity may be one of the keys to brand recollection and recognition. Interactive ads achieve higher engagement rates than their counterparts, after all. 

Plus, OTT can be a gateway to CTV. Since OTT ads appear on TVs (and any other streaming devices), marketers can experiment with TV-exclusive ads (and track their engagement metrics) without completely leaning into a CTV-exclusive approach. 

Advantages of CTV advertising

CTV offers advantages of its own:

• It combines the best of digital and analog advertising – CTV ads harness the power and familiarity of conventional broadcast ads in combination with today’s high-octane digital marketing tools—the precision of digital marketing delivered via the immersive experience of watching TV. This combination is especially powerful for brands looking to tell impactful, memorable stories.
• It offers niche targeting opportunities – Like OTT, CTV offers marketers the chance to segment and target their audiences at the granular level. Household-level targeting facilitates ad content that’s highly relevant to viewers based on their geography, demographics, and streaming habits. 
• It increases the odds of ad completion – If viewers want to continue watching, they must complete a non-skippable ad—the standard for CTV. While there’s something to be said for building brand recall with a skippable ad, ad completion can also be a key asset in a branch recognition campaign. 

Choosing the right strategy for specific advertising goals

When deciding on an advertising strategy, brands have three options in the face of the OTT vs. CTV debate:

• A broader OTT approach – OTT is best suited for brands looking for cross-device engagement. OTT also facilitates performance-driven, data-informed campaigns with interactive elements. 
• CTV exclusivity – A CTV-specific approach is best for brands prioritizing awareness since CTV ads are typically non-skippable. This might also be the ideal venue for premium ad placements: a good match for the immersive TV viewing experience. 
• A blended strategy – Leveraging both general OTT advertising and CTV-specific campaigns will facilitate broad reach and give brands the opportunity to fully harness the benefits of both formats. 

That said:

• OTT is a broad channel; advertisers must consider how their assets will be perceived by a wide variety of segments, on multiple types of devices, and (potentially) across various streaming platforms. Brands looking to keep it simple might not be ready to tackle OTT without help from the pros. 
• CTV still carries a lot of the baggage of traditional broadcast ads. These analog trappings may not mesh with tech-forward businesses’ brand identities. 

To choose an ideal route, consider A/B testing: running test ads in each channel, measuring engagement metrics, and building a strategy based on the data collected.

Maximizing your OTT and CTV advertising strategy

No matter which route today’s digital advertisers take, optimization is key. Tailoring ads for different devices ensures a seamless viewing experience across platforms—an effort that won’t go unnoticed by consumers. 

The key to optimization? First-party data. Leveraging detailed consumer information and programmatic buying can improve targeting precision and ad relevance (another key to connecting with consumers).

Brands in need of tech-powered partners in paid media turn to Power Digital: a growth marketing firm that can regularly analyze performance metrics, refine strategies, and allocate marketing spend effectively for the best return on investment. 

Ready to break into streaming? Reach out to Power Digital now.

Sources: 

Forbes. 2025 Predictions for Streaming: Content Innovation, Strained Pricing and Consolidation. https://www.forbes.com/councils/forbestechcouncil/2025/01/29/2025-predictions-for-streaming-content-innovation-strained-pricing-and-consolidation/ 

Forbes. Why Marketers Should Be Looking to OTT and CTV to Reach Consumers. https://www.forbes.com/councils/forbesbusinessdevelopmentcouncil/2022/06/13/why-marketers-should-be-looking-to-ott-and-ctv-to-reach-consumers/ 

Amazon Ads. What Is OTT? A Complete Guide to Over=the-Top. https://advertising.amazon.com/library/guides/what-is-ott 

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

The Conversation. Too Distracted to Watch? Netflix Has the Perfect “Second-Screen” Show for You. https://theconversation.com/too-distracted-to-watch-netflix-has-the-perfect-second-screen-show-for-you-249012 

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 

LinkedIn. Interactive Ads: Engaging Your Audience in New and Exciting Ways. https://www.linkedin.com/pulse/interactive-ads-engaging-your-audience-wxzoc