CTV vs OTT: The Key Differences Explained (With Examples)

All Connected TV (CTV) is Over-the-Top (OTT), but not all OTT is CTV.

Confusing? Possibly.

What’s worse, not being crystal clear on the difference can lead to advertisers overpaying for impressions and costing them millions in wasted ad spend.

For marketers, understanding the distinction means smarter targeting and stronger ROAS.

Luckily, we’re here to set the record straight. In this guide, get clear answers about CTV and OTT and CTV — plus actionable strategies to optimize every programmatic buy.

What Is the Difference Between CTV and OTT?

In simple terms:

• OTT is the delivery method, which involves streaming video content over the internet on any device.
  
  
• CTV refers to OTT content that is streamed on a smart TV or a device connected to a TV, such as a Roku or Amazon TV box, or a games console. The main advantage of CTV is that it displays streaming content on a large TV screen.

As we mentioned earlier, CTV is OTT, but not all OTT is CTV. In fact, most OTT content is viewed on mobile phones and laptops, not on a living room TV.

Let’s look at an example.

If you’re streaming a show on Disney+ on a tablet, you’re watching OTT content. If you switch to your Apple TV, you’re still watching OTT content but on a CTV.

The distinction doesn’t matter much for viewers; they’re still streaming content whether it’s on a mobile device or a TV. But for marketers, knowing the difference is critical for a few reasons:

• Viewing environments affect engagement: CTV ads are viewed on large screens, where attention is higher, engagement deeper, and co-viewing is more likely. You’re not just buying impressions, you’re buying sight, sound, and scale.
  
  
• Targeting capabilities differ: CTV prioritizes household targeting, while OTT enables precision across personal devices. Choose based on your audience goals.
  
  
• Creative optimization varies: CTV spots need bold visuals and simple messaging that capture living-room attention. OTT creatives should be optimized for use across various screen sizes and interactive moments.

With consumers spending time across channels and devices, capturing their attention is more challenging than ever. CTV is a marketer’s edge to cut through the noise.

A study found that CTV delivers a 13% higher attention index than linear TV. It also found higher rates of co-viewing among ad-supported streaming households, meaning CTV ads are more likely to reach multiple viewers.

We’ll cover more of these distinctions throughout this article. But keep this in mind: If you’re promised premium CTV inventory, verify you’re not getting repacked mobile OTT at CTV prices.

What Is Over-The-Top (OTT)?

OTT refers to all streaming media content delivered to viewers over the internet, rather than through traditional satellite or cable networks.

Top players in the OTT space include:

• Netflix
  
  
• Disney+
  
  
• Amazon Prime Video
  
  
• Hulu
  
  
• YouTubeTV
  
  
• PlutoTV
  
  
• Sling TV

Internet radio and VoIP services, such as WhatsApp, also technically fall under the OTT category, although this article focuses primarily on video streaming platforms.

How OTT Advertising Works

OTT advertising refers to the video ads that play on OTT services like Netflix, Hulu, and Amazon Prime Video. These can take a few different forms:

• Pre-roll video ads that play before a stream starts on someone’s tablet.

• Mid-roll video ads that pop up in the middle of viewing a show on Hulu at home.

• Banner ads that appear as a static graphic overlay during a YouTube video.

Because these ads are delivered digitally, they have many advantages over traditional TV advertising. For example, advertisers can target specific demographics and track ad performance in real-time.

That said, we’ve all flipped to another tab or muted our laptops during a commercial break. And you’ve probably hit the “skip” button 5 seconds into a YouTube pre-roll. Skippable ads are one reason OTT ads on personal devices differ from CTV ads on the big screen.

What Is Connected TV (CTV)?

Connected TV refers to any internet-connected television used to stream video content on streaming services.

Some common CTV devices include:

• Smart TVs, like Samsung OLEDs, which come with an operating system and preloaded apps.
  
  
• Streaming devices and set-top boxes, like Apple TV, that transform “dumb” TVs into internet-connected devices that can access streaming content.
  
  
• Gaming consoles, like the PlayStation, that allow users to stream movies, TV shows, and music in addition to playing video games.

How CTV Advertising Works

CTV advertising refers to the video ads served to viewers on connected TVs. The benefits of CTV compared to traditional TV advertising all tie back to data.

Marketers get deep insights into users and actions after ad exposure in digital environments. This allows for more data-driven tactics, including:

• Precise targeting: Reach specific demographics, interests, and viewing habits to cut wasted impressions and ad spend. It goes far beyond the broad demographic targeting of traditional TV. The real power comes from layering multiple targeting parameters. For example, one beauty brand retailer targeted women aged 25-54 within certain areas to generate over $200,00 in revenue.
  
  
• Content-agnostic placement: Find your audience, no matter what they’re tuning into, by placing ads programmatically across a vast array of publishers. With CTV, you don’t have to buy “slots” like traditional TV. You can reach specific viewers regardless of the content they’re streaming.
  
  
• Real-time measurement: Track ad impressions, clicks, and conversions in real time. CTV provides immediate visibility into performance, enabling you to fine-tune your ad campaigns as they run.
  
  
• Retargeting: Re-engage viewers who have previously interacted with your brand online across devices. For example, you can target reviews on their living room TV and then re-engage those same viewers with additional messaging on mobile or desktop.
  
  
• Holistic attribution: Gain a comprehensive understanding of how your CTV campaigns contribute to overall marketing goals. With the right attribution tools, you can tie spend to outcomes and quantify ROI — unlike the guesswork of linear TV.

To see how effective CTV can be for your brand, here’s how one company leveraged CTV advertising to drive measurable business results.

A national nutritional supplement retailer partnered with Strategus to target lapsed and new customers near 647 locations. It involved a full-funnel strategy with CTV and cross-channel retargeting to drive revenue growth.

The results? The campaign generated over $2 million in online revenue from 22,178 tracked online purchases and an additional $1.35 million in revenue from in-store visits.

Read the case study here.

OTT Advertising vs. CTV Advertising

OTT advertising refers to video ads delivered over the internet on any device, while CTV advertising refers to ads shown on internet-connected TVs for a big-screen viewing experience.

OTT and CTV advertising enable more advanced tactics and targeting than traditional cable box ads.

But how do OTT and CTV compare in terms of ad performance? Does it all come down to the devices on which these ads are viewed? If so, is a video ad on a living room TV really that different from one on a smartphone?

In a word: yes.

CTV ads comprise a select tier of OTT ads that are only delivered to large-screen TVs.

This means that co-viewing is more common (resulting in more ad impressions), viewers are more engaged (resulting in better recall), and the impact is much higher (resulting in actual business results).

In other words, CTV is the crème de la crème of OTT, promising:

1. Better ad recall: CTV ads stay top of mind because they’re watched by tuned-in audiences, on the big screen, in the comfort of their own homes.
   
   
2. Happy viewers: With CTV, advertisers can reach relaxed viewers who tolerate ads more than when on their mobile devices (probably because they’re watching shows they love).
   
   
3. Premium content: CTV is restricted to premium, long-form, professionally produced content on the networks we all know and trust.
   
   
4. High completion rates: Unlike OTT ads on YouTube and the like, CTV ads can’t be skipped (making for nearly 100% video completion rates).
   
   
5. Product discovery: CTV drives direct sales, evolving beyond a brand-building medium. 62.7% of consumers reported discovering new brands or products through TV content.

Need to get further into the minutiae?

Here’s a side-by-side comparison of OTT and CTV:

Understanding these differences is an important step. But what you should be asking yourself is, when does it make sense to use CTV versus casting a wider OTT net? Let’s take a look.

When to Use CTV vs. OTT Buys

CTV and OTT advertising enable you to reach streaming audiences in new and engaging ways, but selecting the right approach depends on your campaign objectives.

Here’s how to determine which approach best suits your needs.

Use CTV-focused buys when you want:

• The brand impact and engagement of the big screen experience.
  
  
• To re-target viewers across devices and connect TV viewing to online actions.
  
  
• To reach “cord cutters” and high earners, 83% of U.S. adults now use streaming services, while only 36% still subscribe to cable or satellite. You also get direct access to audiences with greater purchasing power.

Use OTT-focused buys when you want:

• To target specific demographics — for example, 72% of 18 to 29 year-olds use Hulu, while 78% of 30 to 49 year-olds use Amazon Prime Video.
  
  
• To leverage platform-specific ad formats, mobile devices can display interactive overlays, such as swipeable carousels, allowing viewers to explore products.
  
  
• To reach viewers across different contexts and devices throughout the day.

To sum up, CTV buys excel when you need the premium impact of the big screen, while OTT buys provide broader flexibility and reach across devices.

The good news? You don’t have to choose one or the other. The most effective ad campaigns integrate both CTV and OTT to maximize reach.

How CTV and OTT Advertising Work Together in Programmatic Ecosystems (and How to Combine Them)

CTV and OTT work hand-in-hand within programmatic advertising ecosystems to deliver targeted ad campaigns. How’s how:

• Inventory: OTT platforms offer ad-supported streaming content, while CTV devices serve as the interface through which ads are delivered to viewers.
  
  
• Targeting: Data from OTT streaming services (viewing behavior) and CTV devices (household data) enable precise audience targeting.
  
  
• Measurement: Advertisers can track metrics like impressions, completion rates, and even revenue to attribute sales to a CTV campaign.

The most effective approach is to use both strategically.

Here’s how to combine CTV with online video OTT, step by step.

1. Start with CTV

Start with CTV ads on big screens to build awareness and educate local buyers. Launch your campaign by delivering top-of-funnel awareness ads on connected TVs using household-level targeting for maximum visual impact.

Tap into first-party data (from your actual customers) and third-party data (from external providers) to reach users across CTV platforms. Partner with a provider that offers device-level targeting data and cross-platform retargeting to extend your reach. Then follow with targeted OTT video on mobile and desktop to drive viewers down the funnel.

Read more: CTV Best Practices: How to Plan High-Impact Campaigns

2. Build retargeting pools

Capture CTV exposures using pixel-based tracking, identity graphs, or device IDs to create custom retargeting segments. Identify which households or devices were exposed to your ads, so you can build audiences for follow-up campaigns.

Retarget viewers across YouTube, Instagram, and TikTok for full-funnel impact.

Read more: The Complete Guide to CTV Retargeting

3. Deploy online video

Serve short-form video ads on platforms like YouTube, Meta, or TikTok to reinforce the message and drive mid-funnel engagement. These platforms enable you to reach viewers in various contexts throughout the day.

YouTube Shorts and TikTok Ads are effective at influencing Gen Z purchasing behavior: 51% of Gen Z boys and 43% of girls made purchases after watching ads on YouTube Shorts.

4. Layer additional channels

Add programmatic display, audio ads, and even email or SMS to surround the viewer across touchpoints and maintain message consistency. This multi-channel approach keeps your brand top of mind across different stages of the customer journey.

5. Adjust frequency ratios

For brand awareness, aim for a 1:1 CTV-to-retargeting ratio. This means for every CTV ad served, you’ll deliver one retargeting ad to reinforce your messaging.

For performance goals like clicks or conversions, use a 1:1.5 ratio to increase follow-through. That means you’ll serve 1.5 retargeting ads for every CTV impression.

These frequency ratios help move viewers from awareness to action. Adjust these ratios based on your campaign performance data and objectives.

To see how these strategies translate to real results, consider this case study:

A leading home remodeling company partnered with Strategus for a 2-month CTV campaign to drive web traffic and in-store visits. The campaign served CTV ads to homeowners with a household income of $50k+ and properties valued at $100k, then reinforced messaging with Display and Online Video ads.

The campaign generated 90,269 website visits and 4,094 in-store visits, demonstrating the effectiveness of an integrated marketing approach.

Read the case study here.

How to Measure Performance in CTV and OTT Campaigns

One of the biggest challenges with CTV and OTT advertising is consistent measurement. Since viewers often switch between devices and platforms, linking exposures to outcomes isn’t simple.

To improve accuracy:

• Utilize cross-device identity graphs to track users across multiple devices, including mobile, desktop, and TV.
  
  
• Conduct brand lift studies to measure awareness or intent following exposure.
  
  
• Leverage platforms with unified dashboards that combine CTV data with web and social campaign insights.

Pro tip: Ask vendors how they handle attribution across devices and which measurement partners they use (e.g., LiveRamp, Innovid, Nielsen).

Read more: What is CTV Attribution & How It Works (2025 Guide)

CTV Advertising Challenges and How to Address Them

CTV and OTT advertising enable broad reach, precise targeting, and measurable results across streaming platforms. However, they also come with unique challenges that advertisers should understand to run successful campaigns.

1. Fragmentation in CTV and OTT advertising

The CTV and OTT ecosystem is incredibly fragmented.

Media buyers often juggle:

• Multiple DSPs and SSPs
  
  
• Overlapping or non-exclusive inventory
  
  
• Conflicting performance metrics across platforms

To simplify, consider:

• Consolidating spend through a single DSP or hybrid buying platform.
  
  
• Prioritizing supply path optimization (SPO) to reduce intermediaries and increase efficiency.
  
  
• Leaning into walled gardens like Roku, Amazon, or YouTube TV for consistency — though with some tradeoffs in flexibility.

2. Low CTV ad engagement rates

Low engagement means wasted impressions and missed revenue opportunities.

With the rise of GenAI and programmatic creative, CTV ads can now be more than just passive videos. Interactive ad formats, like QR code overlays, choose-your-own-path ads, and click-to-shop experiences, are driving deeper engagement and higher recall.

Meanwhile, GenAI tools allow brands to:

• Automatically generate personalized ad variations.
  
  
• Optimize scripts, visuals, and CTAs based on viewer behavior.
  
  
• Run dynamic creative optimization (DCO) at scale.

Here’s an example of an interactive video ad:

(Image Source)

These types of CTV ads are effective at increasing engagement. Advertisers using these strategies report 71 seconds of additional viewer time compared to standard pre-roll.

3. Ad fraud in CTV advertising

Despite its advantages, CTV advertising isn’t immune to ad fraud.

Common issues include:

• Device spoofing: Ads appearing on mobile or desktop devices labeled as CTV.
  
  
• Non-viewable inventory: Ads served while the screen is off or to bots.
  
  
• Reselling low-quality inventory: Middlemen adding markups while offering poor ad placements.

To reduce the risk:

• Buy through private marketplaces (PMPs) with curated, vetted inventory.
  
  
• Use DSPs with pre-bid verification filters to exclude invalid traffic.
  
  
• Work with vendors who are MRC-accredited and TAG-certified for fraud prevention.

4. Preparing for a privacy-centric CTV future

With tighter privacy laws and the deprecation of cookies, CTV advertisers must future-proof their targeting strategies.

Here’s how:

• Use first-party data wherever possible — especially from CRM or subscriber lists.
  
  
• Adopt Privacy-Enhancing Technologies (PETs), such as clean rooms or differential privacy.
  
  
• Lean into contextual targeting based on content genre, time of day, or viewer location instead of behavioral data.

Smart TVs collect rich contextual data, and advertisers can use it responsibly to maintain performance without sacrificing privacy.

By tackling measurement, fraud, privacy, and engagement head-on, advertisers can unlock the full potential of CTV. That’s where we come in.

Why CTV Is Taking Over TV Advertising

Viewers are spending an average of 2 hours and 15 minutes on CTV. With ad-supported streaming now the norm, brands get premium reach on the biggest screen in the house.

Still, media buying is messy because it’s:

• Split between linear, CTV, and OTT.
  
  
• Hard to track and allocate budgets.
  
  
• Filled with inconsistent inventory quality.

The future is clear: all TV is going digital. Advertisers who embrace CTV and build omnichannel strategies around real viewers — not just screens — will win.

Quick check: Ask your provider, “Do 100% of your CTV ads run on connected TVs?”

If not, it’s time to switch.

Get More From Your CTV Investment with Strategus

At Strategus, we help brands and agencies go beyond standard CTV campaigns, connecting the dots across devices, channels, and the entire funnel.

Here’s what you get with Strategus:

• Precision targeting at scale through deep integrations with leading DSPs, SSPs, publishers, and data partners.
  
  
• Full-funnel strategy that starts with CTV and extends to online video, display, audio, and more.
  
  
• Custom retargeting flows that re-engage viewers based on CTV exposure and move them closer to conversion.
  
  
• Omnichannel execution that delivers the right message on the right screen at the right time.
  
  
• Hands-on support from a team that manages everything from planning to performance optimization.

Ready to simplify your media buying and get better results from CTV?

Reach out today.

Frequently Asked Questions

What Is OTT CTV Advertising?

OTT CTV advertising refers to video ads delivered via internet-connected TVs. OTT (Over-the-Top) means content streamed online, while CTV (Connected TV) refers to the devices like smart TVs. Together, they let advertisers reach audiences watching streaming content on large screens, often with better targeting and measurement than traditional broadcast channels.

Is OTT the Same as CTV?

No. OTT refers to the method of delivering video content over the internet, while CTV refers to the device used to view it, such as a smart TV. All CTV is OTT, but not all OTT is CTV. Mobile phones and tablets also stream OTT content, but they're not CTV.

How Does CTV Advertising Compare to Traditional TV Advertising?

CTV offers better targeting, data tracking, and measurement than traditional linear TV. Advertisers can reach specific demographics, measure ROI in real time, and adjust campaigns quickly. Traditional TV buys large audiences with limited targeting and slower feedback. CTV gives more control and flexibility with programmatic buying.

How to Advertise on CTV?

To advertise on CTV, use a demand-side platform (DSP) or partner with an agency that accesses premium CTV inventory. Define your audience, upload creatives, set a budget, and launch your campaign across streaming platforms like Hulu or YouTube TV. Monitor performance through real-time dashboards and optimize for reach or conversions.

What Is Programmatic CTV?

Programmatic CTV refers to buying CTV ad inventory through automated platforms. It allows advertisers to reach targeted viewers on smart TVs with real-time bidding, audience segmentation, and performance analytics. This method streamlines delivery and maximizes return by placing ads where and when viewers are most engaged.

How Much Does It Cost to Advertise on CTV?

CTV ad pricing varies, but CPMs typically range from $20 to $40 depending on targeting, content quality, and platform. Premium inventory like Hulu or YouTube TV may cost more. Costs rise for niche targeting or exclusive placements, but advertisers gain better measurement and conversion potential.

How Can Advertisers Go Beyond Ad Verification in OTT and CTV?

To go beyond basic ad verification, advertisers should focus on attention metrics, brand lift studies, audience quality analysis, and post-view behavior. Use clean rooms, advanced attribution tools, and third-party validation for true performance insights. This approach ensures your ads reach not just real viewers, but the right ones.

How Does OTT Differ from Traditional TV?

OTT delivers content online, allowing viewers to watch on-demand across devices like phones, tablets, or smart TVs. Traditional TV uses broadcast or cable, with fixed schedules. OTT allows targeting, tracking, and flexibility, while traditional TV offers broad reach but limited control or personalization.

What Types of Advertisers Benefit from Connected TV?

Brands focused on awareness, direct-to-consumer sales, or niche audience targeting benefit most. CTV suits industries like retail, healthcare, automotive, education, and finance. Its precise targeting, premium placements, and cross-device reach help both large enterprises and growth-stage businesses reach high-value viewers at scale.

Why Do Big Companies Still Advertise on TV Instead of Social Media?

Big companies use TV for broad reach, brand building, and credibility. TV still commands mass audiences during live events and primetime shows. While social media offers targeting and engagement, TV provides scale, emotional storytelling, and high-impact visibility—especially for national campaigns or product launches.