CTV vs. OTT: The Key Differences
Streaming has completely reshaped how audiences consume video content — and how advertisers reach them. But terms like OTT, CTV, Connected TV advertising, and OTT vs CTV are often used interchangeably, causing confusion among marketers, business owners, and even publishers selling ad inventory.
Although OTT and CTV are closely related, they are not the same. Understanding the difference is crucial for planning advertising budgets, predicting performance, analyzing targeting options, and maximizing ROI.
This guide breaks down OTT vs CTV in simple, actionable language — whether you’re a digital marketer deciding how to allocate budget, a local business owner new to streaming ads, or a publisher positioning your inventory for advertisers.
We’ll cover:
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What OTT and CTV actually mean
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Why CTV is easier and more accessible than traditional TV advertising
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How OTT and CTV shape targeting, measurement, and ad performance
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Why small and local businesses are rapidly shifting ad spend into streaming
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The growth of ad-supported streaming (AVOD + FAST)
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Strategic recommendations for marketers and publishers
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Visual diagrams and charts
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FAQs and schema for SEO
Let’s get started.
TABLE OF CONTENT
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What Is OTT and What Is CTV?
Before comparing OTT vs CTV, it’s essential to understand the difference:
OTT (Over-the-Top)
OTT is the delivery method.
It refers to any video content delivered over the internet, bypassing cable or satellite providers.
Examples of OTT services include:
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Netflix
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Hulu
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Disney+
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YouTube and YouTube TV
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Tubi
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Pluto TV
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Amazon Prime Video
OTT can be viewed on:
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Smartphones
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Tablets
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Laptops
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Desktop computers
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CTV devices
CTV (Connected TV)
CTV is the device used to watch OTT content.
A CTV is any internet-connected television or device that enables streaming. This includes:
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Smart TVs
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Roku
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Amazon Fire TV
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Apple TV
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Google Chromecast
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PlayStation and Xbox
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Set-top boxes
CTV = the big-screen experience in the living room.
Simple Analogy
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OTT = the water (content)
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CTV = the faucet (the device you use to access it)
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You can access water from a hose, sink, or shower → You can watch OTT on mobile, laptop, or CTV.
The Relationship Between OTT and CTV
The easiest way to understand the relationship:
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All CTV is OTT.
(Because you're streaming internet-delivered content on a TV.) -
Not all OTT is CTV.
(You can watch OTT services on your phone, laptop, or tablet.)
Why the Difference Matters for Advertising
Understanding OTT vs CTV changes your approach to:
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Targeting
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Budget allocation
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Creative format
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CPMs
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Measurement
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Attribution
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Context
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ROI
Here’s the key difference:
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OTT includes all devices
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CTV includes only the living-room TV screen
This creates very different advertising environments.
Aspect
CTV
OTT
What it is
Internet-connected TV device
Delivery of streaming content
Devices
Smart TVs and streaming boxes
Mobile, desktop, tablet, CTV
Viewing context
Shared, household screens
Personal screens
Targeting
Household/device-level
Individual-level IDs
Ad environment
Lean-back, high completion
Interactive, skippable
CPM
Higher (premium)
Lower
Subset?
CTV is a subset
OTT is the umbrella
Why CTV Advertising Is Easier Than Traditional TV
One of the biggest benefits for marketers — especially small and local businesses — is how simple and accessible CTV advertising is compared with traditional TV.
Traditional TV Advertising Challenges
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High minimum budgets (often $20k+)
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Fixed time slots
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Limited targeting (age, gender, DMA)
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No real-time reporting
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No precise attribution
CTV Advertising Advantages
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Runs on any budget (as low as $500–$2,000)
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Targeting based on real data:
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Household income
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ZIP code
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In-market buyers
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Interests & behaviors
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Delivery across all major apps
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Reports include:
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Impressions
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Completion rates
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Frequency
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Household reach
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Store visits
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Website conversions
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CTV democratizes access to TV-level advertising.
Why CTV & OTT Are Beneficial for Small & Local Businesses
Small businesses historically could not advertise on TV due to cost.
Streaming has changed this forever.
Why small/local businesses love CTV advertising:
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You can target only your ZIP codes or radius
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You pay only for impressions — not showtimes
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Your ads appear on premium content like:
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ESPN
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Discovery
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AMC
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Food Network
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Local news streams
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It builds trust because customers associate streaming with “real TV”
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Reporting is transparent
What this means for SMBs
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Higher trust than social media ads
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More consistent attention than mobile ads
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More cost-efficient than traditional TV
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Measurable results
Viewing Trends — Why CTV & OTT Are Dominating
Below is a summary of the latest industry data (2024–2025):
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90% of U.S. households use CTV monthly
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Streaming > Cable + Broadcast combined
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73.6% of all TV time is now ad-supported
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CTV ad spending projected to hit $46.89B by 2029
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Hybrid ad-supported tiers like Netflix’s are booming
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FAST (Free Ad-Supported Streaming TV) viewing grew 43% YoY
Sources: Nielsen Gauge Report 2025, eMarketer, Amazon/YouTube streaming growth reports.
Types of OTT Services (SVOD, AVOD, FAST, TVOD)
The OTT ecosystem breaks down into:
SVOD (Subscription Video on Demand)
Paid, ad-free services.
Examples: Netflix premium, Disney+ premium.
AVOD (Advertising-Based Video on Demand)
Free or low-cost, ad-supported.
Examples: Tubi, Hulu basic.
FAST Channels (Free Ad-Supported Streaming TV)
Live, linear-style channels with commercial breaks.
Examples: Pluto TV, Samsung TV Plus.
TVOD (Transactional Video on Demand)
Pay-per-view rentals or purchases.
Examples: iTunes rentals.
The Strategic Difference for Marketers (OTT vs CTV)
OTT Strategy:
Plan for all screens — mobile, desktop, TV.
CTV Strategy:
Plan specifically for the premium big-screen experience.
Most advertisers run both:
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OTT (phones/tablets) → broad performance & retargeting
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CTV (big-screen) → premium reach & brand lift
Sources: Standard DSP planning workflow.
Conclusion
OTT and CTV are deeply connected, but they serve different roles:
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OTT = The delivery method
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CTV = The living-room TV device
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CTV is a subset of OTT
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CTV ads deliver higher impact
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OTT ads deliver broader reach
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Small businesses benefit massively
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Marketers can target precisely and measure results
Understanding this distinction helps marketers allocate budget correctly, helps SMBs choose the right channel for growth, and helps publishers package their inventory in the most valuable way.
OTT vs CTV is no longer just a terminology difference — it’s the foundation of modern video advertising.
Author of This Post
Alexander Robinson III
Founder/Director of SEO
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CTV is any internet-connected television device (Smart TV, Roku, Fire TV) that lets users stream content over the internet.
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