As of 2025, only 44 percent of U.S. households still subscribe to traditional cable TV, down from 76 percent in 2015, according to Insider Intelligence. With more consumers shifting to streaming, Connected TV (CTV) and Over-the-Top (OTT) advertising have become essential for brands looking to engage modern audiences.
These digital video channels combine the impact of television advertising—high engagement, premium content, and full-screen experiences—with the targeting precision of digital marketing. Instead of buying ads based on broad TV ratings, advertisers can reach specific demographics, interests, and even behavioral segments.
But how do you decide when to use CTV versus OTT, and how should they fit into your marketing strategy? This guide breaks down their differences, best use cases, and key strategies for success.
Understanding CTV and OTT
While often used interchangeably, CTV and OTT are distinct.
OTT refers to content delivered via the internet without a cable or satellite subscription. Streaming platforms like Hulu, Amazon Prime Video, YouTube, Tubi, and Pluto TV fall under this category (IAB).
CTV refers to the devices used to stream OTT content, including smart TVs, Roku, Apple TV, Amazon Fire Stick, and gaming consoles.
In short, OTT is the content, while CTV is the device used to watch it.
When to Use CTV and OTT in Your Marketing Strategy
Reaching a Wider, Cord-Cutting Audience
With millions of viewers abandoning traditional TV, CTV and OTT give advertisers access to a growing audience that no longer watches cable. These platforms also provide an ad-supported alternative to subscription-based streaming, allowing brands to reach engaged viewers without competing for attention on cluttered social media feeds.
For companies focused on brand awareness, CTV is especially effective. Ads are typically non-skippable, full-screen, and served in a lean-back environment, much like traditional television, making them more engaging than standard digital video ads.
Enhancing Audience Targeting
CTV and OTT advertising go beyond traditional TV’s broad targeting by allowing advertisers to reach highly specific audiences. Platforms like The Trade Desk and Google Display & Video 360 offer programmatic ad buying, enabling brands to target viewers based on demographics, interests, location, and even purchase behavior.
For campaigns where precision matters—such as localized promotions or niche product offerings—CTV and OTT outperform traditional TV by delivering ads to the most relevant audiences.
Driving Measurable Performance
Unlike traditional TV advertising, which relies on estimated viewership numbers, CTV and OTT provide real-time performance data. Advertisers can track impressions, video completion rates, and even post-ad actions such as website visits or app downloads.
By integrating CTV and OTT data with analytics tools like Google Analytics or Adobe Analytics, brands can connect ad exposure to business outcomes, making these channels more accountable than traditional TV.
Supporting a Full-Funnel Marketing Approach
CTV and OTT advertising work best when integrated with other digital strategies. While they excel at brand awareness, they can also drive mid-funnel engagement and even conversions when paired with retargeting campaigns.
For example, a brand can run a CTV ad to introduce a product, then retarget viewers with display or social ads. Some streaming platforms also offer interactive ad formats, clickable overlays, and QR codes, making it easier to convert viewers into customers.
Best Practices for Using CTV and OTT Advertising
- Balance reach and precision. CTV is ideal for broad awareness, while OTT allows for more granular audience targeting. A combination of both ensures maximum impact.
- Use first-party data. Many streaming platforms allow advertisers to match their own customer data for more relevant targeting.
- Experiment with ad formats. Some OTT platforms support interactive ads and dynamic creatives, which can improve engagement.
- Be mindful of frequency and ad fatigue. Unlike traditional TV, where viewers expect repeated ads, digital audiences are less tolerant of seeing the same ad too many times. Platforms like The Trade Desk and Amazon DSP allow advertisers to set frequency caps, ensuring viewers aren’t overexposed. A good benchmark is three to five exposures per week per user to maintain effectiveness without causing annoyance.
- Prioritize premium content. Ads placed in high-quality, brand-safe content perform better and reinforce credibility. Choosing reputable streaming partners ensures a better viewing experience.
Final Thoughts
CTV and OTT advertising have moved from emerging channels to must-haves in modern media strategies. They provide the reach and engagement of traditional TV while offering the targeting precision and measurement capabilities of digital advertising.
For brands looking to stay ahead, integrating CTV and OTT into their media plans now will provide a competitive edge as digital video continues to dominate the advertising landscape. If you’re ready to see how CTV and OTT can help you win more customers at scale, get in touch with us.
