OTT vs CTV Advertising – Meaning, Differences, Examples and How They Work

Television advertising is changing as more viewers move from traditional cable and satellite television to digital streaming platforms. People now watch movies, television shows, live sports, and other video content through smart TVs, streaming devices, and mobile applications.

This shift has created new opportunities for brands to reach audiences through OTT (Over-the-Top) and CTV (Connected TV) advertising.

Although OTT and CTV are closely related, they are not the same thing. OTT refers to the delivery of video content over the internet, while CTV refers to the television device used to access that content.

Understanding OTT vs CTV advertising helps businesses select the right advertising channels, plan media campaigns, and connect with viewers across different streaming environments.

For example, someone watching a movie through a streaming application on a smart TV is consuming OTT content on a CTV device. The same streaming service can also be accessed through a smartphone, tablet, or laptop, where the experience remains OTT but is not CTV.

In this guide, we explain what OTT and CTV mean, how their advertising models work, the differences between them, real-world advertising examples, and how brands can use streaming television to improve their media strategies.

What Is OTT? Understanding Over-the-Top Content

OTT stands for Over-the-Top, a method of delivering video and audio content directly over the internet without requiring traditional cable or satellite television distribution.

OTT platforms allow viewers to watch movies, web series, live sports, television programmes, and other digital content through internet-connected devices.

Unlike traditional television, OTT services do not depend on a conventional cable or satellite connection to deliver their content.

Popular examples include streaming services such as Netflix, Amazon Prime Video, JioHotstar, and other digital entertainment platforms.

How Does OTT Work?

OTT platforms deliver content through internet-based streaming technology.

The general process involves:

• Content hosting: Video content is stored and managed on the streaming platform's servers or content delivery infrastructure.
• Internet distribution: The platform delivers video streams through the internet using content delivery networks.
• Device access: Viewers access the content through an application or web browser on supported devices.
• Video playback: The streaming service adjusts video quality according to device capabilities and network conditions.
• Content monetisation: Depending on the business model, platforms earn revenue through subscriptions, advertising, or a combination of both.

OTT services can be accessed through smart TVs, smartphones, tablets, laptops, gaming consoles, and streaming devices.

What Is CTV? Understanding Connected TV

CTV stands for Connected TV, which refers to a television device that connects to the internet and allows users to access digital streaming content.

A connected television can be a smart TV with built-in internet connectivity or a traditional television connected through an external streaming device.

Examples include smart televisions and devices such as Amazon Fire TV Stick, Apple TV, and other compatible streaming devices.

CTV allows viewers to access streaming applications and digital video content directly on their television screens.

CTV Meaning in Digital Advertising

In digital advertising, CTV refers to advertising delivered through internet-connected television environments.

Instead of depending on traditional television broadcasting, CTV advertising allows brands to display video advertisements within supported streaming applications and digital television content.

For example, when someone watches an ad-supported movie or streaming programme on a smart TV, they may see an advertisement from an automobile manufacturer, consumer electronics brand, or FMCG company.

CTV advertising combines the large-screen viewing experience of traditional television with the digital delivery and measurement capabilities of online advertising.

How Does CTV Advertising Work?

CTV advertising uses connected television devices and digital advertising technology to deliver video advertisements to viewers.

The process generally includes:

• Audience and campaign planning: Advertisers define campaign objectives, audience requirements, geographical coverage, and advertising formats.
• Media inventory selection: Advertising inventory is identified across supported streaming platforms and publishers.
• Ad delivery: Advertisements are served through available advertising technology and streaming environments.
• Viewer engagement: Audiences watch the advertisements while consuming streaming content.
• Campaign measurement: Advertisers evaluate impressions, reach, frequency, video completion, and other available performance indicators.

CTV advertising can help brands combine television-style storytelling with digital campaign planning and measurement.

OTT vs CTV – Understanding the Key Differences

OTT and CTV are often used together in digital advertising because both are connected to internet-based video consumption. However, they describe two different parts of the streaming experience.

OTT describes how content is delivered, while CTV describes the device on which viewers watch that content.

For example, when someone watches a web series through a streaming application on a smart TV, the content is delivered through OTT technology and consumed on a CTV device.

When the same person watches that programme on a smartphone, it is still OTT content, but the device is not CTV.

Difference Between OTT and CTV

The important point is that OTT and CTV are not competing technologies. They work together to deliver streaming content and advertising experiences.

OTT vs CTV Advertising – How Are They Different?

Although OTT and CTV advertising are closely connected, they offer different advertising opportunities.

OTT advertising refers to advertisements delivered through internet-based streaming services and video content. These advertisements can appear on smartphones, tablets, laptops, and connected televisions, depending on the platform.

CTV advertising specifically refers to advertisements delivered on internet-connected television devices.

For example, a brand running an OTT advertising campaign may reach viewers watching a streaming application on smartphones and smart TVs. A CTV campaign focuses on viewers watching through connected television screens.

OTT Advertising Examples

Here are some common examples of OTT advertising across different devices.

1. In-stream video advertisements

These advertisements appear before, during, or after streaming video content.

For example, a consumer electronics brand may display a 15-second video advertisement before a viewer starts watching a movie on an ad-supported streaming service.

2. Mid-roll advertisements

Mid-roll ads appear during a video or programme. They allow advertisers to reach viewers while they are actively consuming entertainment content.

3. Pre-roll advertisements

Pre-roll advertisements appear before the selected video or programme begins.

4. Display and companion advertisements

Some streaming environments support display or companion advertising placements alongside video content or within the application interface.

5. Interactive video advertisements

Interactive OTT advertisements allow viewers to engage with advertising through supported features such as QR codes, clickable elements, or additional product information.

CTV vs OTT Examples – Understanding Real-World Advertising

The easiest way to understand CTV vs OTT examples is to look at how viewers consume content across different devices.

Example 1: OTT on a smartphone

A viewer watches a web series through a streaming application on a smartphone and sees an advertisement before the episode begins.

OTT advertising

Example 2: OTT on a smart TV

A family watches a movie through an ad-supported streaming application on a smart television and sees a brand advertisement.

OTT + CTV advertising

Example 3: CTV through a streaming device

A traditional television connected to a streaming device accesses internet-based video content and displays advertisements.

CTV advertising

Example 4: CTV during live sports

A brand displays its video advertisement during a live sports stream viewed on a connected television.

CTV advertising

These examples show why OTT and CTV advertising are often planned together. OTT helps brands reach streaming audiences across multiple devices, while CTV provides opportunities to engage viewers through the television screen.

Why Are Brands Investing in OTT and CTV Advertising?

Consumer viewing habits are changing. Instead of relying entirely on traditional television, viewers are increasingly using internet-connected devices to access entertainment, live sports, movies, and digital video content.

This creates opportunities for advertisers to reach audiences in premium streaming environments.

Here are some reasons why businesses are considering OTT and CTV advertising as part of their media strategies.

1. Reach Audiences Across Multiple Screens

OTT advertising allows brands to reach viewers across smartphones, tablets, laptops, and connected televisions.

CTV advertising adds the television screen to this media mix, helping brands connect with audiences through large-screen viewing experiences.

This is useful for businesses looking to expand their advertising reach beyond traditional television.

2. High-Attention Viewing Experience

Television viewing offers a different experience compared with mobile browsing and social media scrolling.

Viewers often watch streaming content on larger screens and may consume longer programmes, movies, and live sports.

This creates an opportunity for advertisers to deliver video messages in a dedicated viewing environment.

However, actual attention and engagement depend on the content, advertisement format, placement, and viewer behaviour.

3. Audience and Household Targeting

CTV advertising platforms can support targeting using different signals, including:

• Geographic location
• Demographic segments
• Content categories and genres
• Viewing context
• First-party customer data
• Purchase and interest signals
• Household-level audience segments

These capabilities allow advertisers to plan campaigns around relevant audience groups and viewing environments.

4. Better Campaign Measurement

Unlike traditional television advertising, digital streaming campaigns can provide additional delivery and performance insights.

Depending on the platform and campaign setup, advertisers can measure:

• Impressions and reach
• Video completion rate
• Frequency
• Viewability
• Audience engagement
• QR code interactions
• Website visits
• Brand recall and consideration

These measurements help advertisers understand how campaigns are performing and where improvements may be needed.

5. Interactive Advertising Opportunities

CTV advertising is no longer limited to showing a video advertisement on a television screen.

Modern formats can allow viewers to interact with advertisements, scan QR codes, explore products, and move from television exposure to mobile experiences.

This creates opportunities to connect brand awareness with measurable audience actions.

What Are the Different CTV Advertising Formats?

CTV advertising offers several creative formats that help brands communicate their messages and encourage viewer interaction.

The right format depends on campaign objectives, available inventory, creative assets, and platform capabilities.

1. Standard Non-Skippable Video Ads

These advertisements appear within supported streaming content and cannot be skipped during their designated duration.

Brands commonly use non-skippable video advertisements to deliver product messages, launch announcements, and brand awareness campaigns.

2. Interactive QR Code Advertising

Interactive QR advertising adds a scannable code to a television advertisement.

Viewers can scan the code using their smartphones and access a mobile experience without manually searching for the advertised product.

For example, an automobile manufacturer can use a QR code to direct viewers to a vehicle landing page, brochure, dealership enquiry form, or product demonstration.

3. Household Sync Advertising

Household sync technology connects advertising exposure on a television with relevant advertising experiences on other devices within the same household.

For example, after a viewer sees an advertisement on a connected TV, a related message can be delivered to a mobile phone, laptop, or tablet within the household, subject to platform capabilities and applicable privacy requirements.

This creates an opportunity for sequential messaging and coordinated cross-device campaigns.

4. Shoppable CTV Advertising

Shoppable CTV advertisements allow viewers to explore advertised products through supported television or mobile interactions.

Depending on the format, viewers can:

• Explore product variants.
• View product information.
• Check available pricing.
• Scan a QR code.
• Visit a product page.
• Continue towards a purchase.

This makes CTV advertising more interactive than conventional video-only formats.

5. Brand Lift Study

Brand lift studies help advertisers understand how advertising campaigns influence audience perceptions.

These studies can evaluate metrics such as:

• Brand awareness
• Ad recall
• Brand consideration
• Purchase intent
• Brand preference

For example, an advertiser may use a post-exposure mobile survey to understand whether people who viewed a CTV advertisement remember the brand or are more likely to consider its products.

OTT and CTV Advertising Targeting Methods

Reaching the right audience is an important part of successful streaming television advertising.

OTT and CTV platforms can offer different targeting capabilities depending on the available inventory, publisher integrations, technology, and campaign requirements.

1. Demographic Targeting

Advertisers can reach supported audience segments based on demographic characteristics such as age, gender, and income categories.

For example, a financial services company may plan campaigns around relevant demographic groups based on its product and marketing objectives.

2. Geographic Targeting

Geographic targeting allows brands to focus advertising campaigns on specific locations.

For example, a retail business can prioritise certain cities, states, or regions where it operates stores or offers services.

Some CTV platforms also support more granular location targeting, subject to inventory and data availability.

3. Content-Based Targeting

Content-based targeting matches advertisements with the programmes, genres, and content environments being watched.

For example:

This helps advertisers align their campaigns with relevant viewing environments.

4. First-Party Data Targeting

Advertisers can use eligible first-party customer data, such as CRM information, to create relevant audience segments.

For example, an automobile brand may use its customer database to reach existing customers or exclude certain customer groups from an acquisition campaign.

The data must be appropriately collected, processed, and activated under applicable privacy requirements.

5. Sequential Messaging

Sequential messaging allows advertisers to deliver different advertisements in a planned order across multiple exposures.

For example:

• First advertisement: Introduce the brand.
• Second advertisement: Highlight product features.
• Third advertisement: Show an offer or call to action.

This approach can help communicate a complete brand message rather than repeating the same advertisement throughout the campaign.

OTT vs CTV Advertising – Which Is Better for Your Business?

There is no universal answer to whether OTT or CTV advertising is better. Both offer different opportunities depending on your campaign objective, audience, and available budget.

For businesses looking to reach audiences across multiple streaming environments, combining OTT and CTV can provide a more comprehensive media strategy.

The campaign should be planned around the audience, creative format, reach requirements, frequency controls, and measurable business outcomes.

How MRN Digital Helps Brands with OTT and CTV Advertising

Planning an effective OTT or CTV campaign requires more than selecting a streaming platform. Brands need suitable inventory, audience targeting, creative formats, frequency management, and campaign measurement.

MRN Digital helps businesses plan and execute digital advertising campaigns across OTT, Connected TV, programmatic media, and interactive advertising environments.

Its solutions include two important capabilities: programmatic and OTT media buying, and CTV innovation powered by its proprietary AdSynQ platform.

1. Programmatic and OTT Advertising

MRN Digital supports automated media buying across premium OTT platforms, streaming services, and the open web.

Through programmatic advertising, brands can access available inventory and use relevant targeting signals to improve campaign delivery.

This helps advertisers plan video campaigns around audience reach, content relevance, geographical requirements, and campaign objectives.

Explore MRN Digital's Programmatic and OTT Advertising Services.

2. Interactive CTV Advertising with AdSynQ

MRN Digital's proprietary AdSynQ platform helps brands move beyond standard television video advertisements through interactive and connected advertising experiences.

Its CTV capabilities include:

• Interactive QR-to-mobile advertising.
• Household sync across television and other devices.
• Shoppable CTV experiences.
• Sequential advertising messages.
• Household-level frequency management.
• Brand lift measurement.

For example, a consumer electronics brand can display an interactive television advertisement with a QR code. Viewers can scan it to explore product details, discover features, or visit a landing page directly on their smartphones.

This connects the television viewing experience with a digital interaction.

3. CTV Audience Targeting

AdSynQ supports different targeting approaches to help brands reach relevant households and viewing environments.

These include:

• ACR (Audio Content Recognition) for identifying content being watched.
• First-party data onboarding.
• Demographic and interest targeting.
• TV contextual targeting based on language, genre, programme, and other content signals.
• User activity targeting.
• Sequential messaging.

The availability of each targeting option depends on publisher inventory, platform integrations, and campaign requirements.

4. Interactive CTV Campaign Example – CEAT Tyre

MRN Digital's CEAT Tyre campaign demonstrates how interactive advertising can encourage viewers to engage with a brand rather than simply watch a video.

The campaign used an AI-powered tyre health checker experience. Users could scan a QR code and use their smartphone camera to receive an AI-generated tyre health assessment.

CEAT Tyre Interactive Advertising Campaign

Campaign results published by MRN Digital.

The campaign demonstrates how interactive creative experiences can encourage deeper product engagement.

5. OTT Campaign Example – VI-John

MRN Digital also executed an OTT unified frequency campaign for VI-John.

The objective was to reach male audiences across India, including viewers who had shifted from traditional television to streaming platforms.

The campaign combined premium video inventory across CTV and mobile streaming environments with coordinated frequency management.

VI-John OTT Campaign Results

Campaign results published by MRN Digital.

This campaign illustrates how OTT media planning and frequency management can help brands deliver large-scale video reach across streaming screens.

Explore more through MRN Digital's CTV Innovation solutions and advertising case studies.

How to Measure OTT and CTV Advertising Performance

Running an advertising campaign is only the first step. Advertisers also need to understand whether their campaigns are reaching the right audiences and delivering meaningful results.

The following metrics can help evaluate OTT and CTV advertising performance.

For example, a campaign focused on brand awareness may prioritise reach, frequency, video completion, and brand recall.

An interactive CTV campaign may additionally measure QR scans, product exploration, average engagement time, and landing page visits.

The right measurement framework should be selected before the campaign begins.

Conclusion

OTT and CTV advertising are important parts of the evolving digital television landscape. Although the terms are often used together, they represent different aspects of streaming media.

OTT focuses on how video content is delivered through the internet, while CTV refers to the television devices used to access that content.

For advertisers, OTT creates opportunities to reach streaming audiences across multiple devices, while CTV offers large-screen advertising experiences with interactive formats, household-level targeting, and digital measurement capabilities.

As streaming consumption continues to evolve, brands can benefit from combining OTT and CTV campaigns with relevant audience strategies, creative formats, and performance measurement.