The way people consume video content has changed drastically. Gone are the days when families gathered around a cable TV to watch shows at a fixed time. Now, viewers watch what they want, when they want, and on the device of their choice—thanks to CTV and OTT platforms. For marketers, this shift presents an exciting opportunity: CTV and OTT advertising.

But what exactly are these terms? And how do they fit into a modern marketing strategy? This blog will break it all down for you in simple terms.

What is OTT?

OTT stands for Over-The-Top, a term used to describe any content that is delivered over the internet without the need for a traditional cable or satellite subscription.

Think of Netflix, Disney+, YouTube, Amazon Prime Video, and Hotstar. These platforms allow viewers to stream movies, series, sports, and more directly through the internet. People can watch this content on a variety of devices—phones, tablets, laptops, and even smart TVs.

There are three main types of OTT platforms:

  1. Subscription-based platforms (SVOD) like Netflix or Amazon Prime where users pay a monthly fee.

  2. Ad-supported platforms (AVOD) like YouTube or Pluto TV, where users watch for free but see ads.

  3. Transactional platforms (TVOD) like Apple TV, where viewers pay for each piece of content.

So in short, OTT is about delivering video content online, bypassing traditional television networks and operators.

What is CTV?

CTV, or Connected TV, refers to any television that can connect to the internet and stream OTT content. This includes Smart TVs with built-in apps, as well as TVs connected to external devices like Roku, Amazon Fire Stick, Apple TV, or gaming consoles like Xbox and PlayStation.

While OTT refers to the content and how it’s delivered, CTV refers to the device on which the content is consumed.

So if you’re watching Hotstar on your smartphone, you’re using OTT. If you’re watching it on your smart TV, you’re using both OTT and CTV.

What is CTV and OTT Advertising?

CTV and OTT advertising refers to digital ads shown during video content that’s streamed online.

When someone watches a show on a streaming platform, the ads they see before, during, or after the video are OTT or CTV ads—depending on the device. These ads work much like traditional TV commercials but are smarter, more targeted, and measurable.

OTT ads can appear on any device like phones, laptops, or tablets. CTV ads, however, are limited to TV screens through internet-connected devices.

Why Are Advertisers Turning to CTV and OTT?

There’s a simple reason why CTV and OTT advertising are booming: people are watching more content online than ever before, and brands want to meet them there.

1. More Viewers, Less Cable

Audiences are ditching cable in favor of streaming. This shift gives advertisers a chance to target people who no longer watch traditional TV.

2. Higher Engagement

Viewers on CTV and OTT platforms are often more focused because they’ve actively chosen what to watch. That means they’re more likely to notice and remember the ads they see.

3. Advanced Targeting Options

Unlike traditional TV where ads are shown to everyone, CTV and OTT platforms let you target specific audiences. You can choose who sees your ad based on age, gender, location, interests, and even behavior.

4. Real-Time Analytics

With digital tracking, advertisers can see how their ads are performing almost instantly—how many people watched, how long they watched, and whether they took action.

5. Multi-Device Reach

People move between devices all day. With OTT ads, you can reach them on their phones during the day and on their smart TVs in the evening.

Common Ad Formats on CTV and OTT

Here are some of the popular ad formats that brands use on these platforms:

  • Pre-roll Ads: Shown before the video content starts.

  • Mid-roll Ads: Play in the middle of the content, like traditional TV commercial breaks.

  • Post-roll Ads: Appear at the end of a video.

  • Display Ads: Static or banner ads shown within the app’s interface.

  • Interactive Ads: Let viewers take action directly from the ad—like clicking to learn more or answering a poll.

Each format has its own benefits and is used depending on the campaign goal.

Benefits of CTV and OTT Advertising

If you’re still wondering whether these ads are worth it, here are some solid reasons why brands are investing in them:

High Completion Rates

Many OTT and CTV ads are non-skippable, especially on TVs. That means viewers are more likely to watch the entire ad, improving brand recall.

Better Targeting

You’re not just showing your ad to anyone—you’re showing it to people who are more likely to be interested in your product or service.

Cost Efficiency

Running ads on CTV and OTT platforms can be much cheaper than traditional TV, especially for small or local businesses.

Real-Time Optimization

Campaigns can be adjusted on the go. If something isn’t working, you can tweak it quickly.

Brand Safety

Your ads appear alongside premium, high-quality content—reducing the risk of your brand showing up next to something inappropriate.

Who Should Use OTT and CTV Advertising?

These advertising methods are great for:

  • E-commerce brands looking for high engagement.

  • Local businesses targeting viewers in a specific city or region.

  • Startups that want to build brand awareness without spending big on traditional TV.

  • Agencies managing clients across different industries.

  • Large brands aiming for cross-device visibility and mass reach.

Basically, if your target audience is online (and they are), CTV and OTT should be part of your media mix.

Challenges to Keep in Mind

As powerful as CTV and OTT advertising is, there are a few things to watch out for:

  • Platform Fragmentation: There are many apps, devices, and streaming services. Managing consistency across all of them can be tricky.

  • Ad Fatigue: Showing the same ad too many times can annoy viewers, especially if the content is short.

  • Limited Interactivity on TV: While mobile ads can be clicked, TV ads are often passive. Direct conversions are harder to track.

  • Different Measurement Standards: Not all platforms use the same metrics, which can make reporting and comparing results a bit confusing.

But with the right planning and tools, these challenges are manageable.

Final Thoughts

CTV and OTT advertising are not just trends—they’re essential components of the modern marketing landscape. As more people shift from traditional TV to streaming platforms, brands must evolve too.

These ads combine the storytelling power of TV with the targeting power of digital. Whether you’re a new business or an established brand, embracing CTV and OTT advertising can help you reach your audience where they’re truly watching.