What is Connected TV?

Blog 4 min read | Oct 24, 2022 | JW Player


The ever-advancing world of technology has transformed the way people live their lives. Technological advancements have revolutionized the way that we communicate, travel, and work. It has also changed the way that we view home entertainment.

Connected TV (CTV) is not only changing the way people watch TV, but it also is also giving advertisers a new strategic advantage. Here is a look at how CTV is beneficial to both the viewer and the digital marketing sector.

What Exactly is Connected TV?

Connected TV refers to various devices that connect a television set to the internet to allow the viewer to easily download and stream content. Some of the different types of CTVs include:

  • Roku devices
  • Xbox
  • PlayStation
  • Amazon Fire TV
  • Apple TV

In order to classify as a CTV, the device does not necessarily have to be plugged into the TV.  Sometimes, the internet connection can be embedded into the TV. This is the case with smart TVs.

CTV vs OTT: What’s the Difference?

An OTT (Over The Top) refers to the type of streaming service that viewers use to get their content. For example, Disney+, Netflix, and Hulu are all OTTs. Many people incorrectly believe that an OTT is the same thing as a CTV. In fact, most people use these two terms interchangeably.

The confusion comes from the fact that some brands seem to offer both CTVs and OTTs. For example, a Roku TV stick is considered a type of CVT, whereas the Roku app is an OTT. However, all TV sticks are considered a type of connected device called an OTT device. These specialized devices allow your TV to connect to the internet and access certain apps.

To put it simply, a CTV provides a way for you to connect to the video streaming app and OTTs are the actual video streaming apps. 

How Viewers Benefit From Connected TV

Many people consider CTV to be the more convenient way to watch television. If you use traditional cable or satellite TV, you will get a certain number of channels and will only be able to watch whatever the available networks are currently airing.

With CTV, viewers have fewer rules. They no longer have to watch the scheduled programming. Instead, they can choose their favorite streaming app and pick from a wide variety of on-demand shows and movies. CTV also provides viewers with more options when it comes to videos.

It is estimated that by next year, 82% of Americans will use CTV in some capacity. With over 200 different streaming apps available, it is understandable why so many people are wanting to switch to a CTV-only household. 

How Connected TV Benefits Advertisers

With so many people changing the way that they watch TV, many companies are starting to change the way that they advertise. There are many ways that advertisers benefit from choosing CTV. Some of the best benefits that companies see from utilizing CTV advertising include:

  • Better Completion Rates: Most people will skip over the commercials when watching regular TV. With most streaming services, however, the viewer can’t skip over the ad. If they watch the entire advertisement, they may be enticed to learn more about your brand.
  • See Faster Results: CTV provides advertisers with real-time data about their current ad campaigns. This will allow the marketing team to get up-to-date data about view rates, reach, and more.
  • Reach a Bigger Audience: Many younger generations are using CTV. There are currently over 56 million millennial users. And that number is expected to grow considerably every year. With over half of Gen-Z using CTV, it is also popular among that group as well. In fact, this generation has been nicknamed the “cord-cutters” because many of them do not like traditional cable TV.
  • Reach a Targeted Audience: With CTV, companies can advertise to a specific demographic. Many people say that they actually enjoy watching the ads on CTV because the advertisements are covering topics and merchandise that are most valuable to them.

CTV advertising can also be a more cost-effective option for some companies. Unlike traditional TV, CTV offers a flexible pricing structure to make it easier for advertisers to stay on budget.

Is Linear TV Soon to be a Distant Memory?

CTV comes with a wide range of benefits for both advertisers and viewers. And many people are starting to trade in their cable boxes for a video streaming subscription. 

However, linear TV is nowhere near dead. There are still plenty of companies that choose linear TV as a viable part of their marketing campaigns. But some people wonder if it is only a matter of time before everyone starts to make the switch to CTV-only.

Only time will tell how popular CTV will become. But for now, this is definitely a convenient and beneficial technological advancement.