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OTT Vs CTV: Unraveling the Best Choice for Your Business

21/05/2023

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In the ever-changing landscape of digital marketing, businesses have numerous options for effectively reaching their target audience. Over-the-top (OTT) and connected TV (CTV) are the two fastest-growing platforms in the 20th century. As the battle between these two titans intensifies, one question looms large: which platform is the best choice for your business?

In this article, we’ll break down the key distinctions between OTT vs CTV services to aid companies in selecting the right choice for their specific requirements and goals.

OTT Vs CTV: Unraveling the Best Choice for Your Business
Source: World trademark review

Understanding of Both: What is OTT vs CTV?

OTT (Over-The-Top) and CTV (Connected TV) are two rising terms in the realm of television and video content. While they are interconnected, understanding the distinction between OTT and CTV is crucial for comprehending the modern viewing experience.

What is OTT (Over-the-top)?

Bypassing the traditional telecommunications, multichannel television, and broadcast television platforms, Over-the-top (OTT) refers to content providers that distribute streaming media as a standalone product directly to viewers over the Internet. To eliminate these established middlemen – as suggested by the prefix “over” in “over-the-top” – is the goal of OTT streaming platform.

Understanding of Both: What is OTT vs CTV?
Source: Insys Video Technologies

In other words, over-the-top (OTT) TV services enable viewers to watch shows online rather than via traditional broadcast methods such as an aerial or satellite dish installed on the roof.

Some examples of OTT services include:

  • Netflix
  • Hulu
  • Amazon Prime Video
  • Disney+
  • HBO Max

What is CTV (Connected TV)?

The all-encompassing phrase “connected TV” (or CTV) refers to TVs that may connect to the Internet to access content from sources beyond a cable or broadband provider. No cable or satellite subscription is required. Consequently, CTVs include OTT devices linked to conventional TVs, allowing the latter to connect to the Internet alongside smart TVs and IPTVs.

Most people access OTT services like Hulu and Netflix through CTV, which offers its own set of advantages for advertisers. So, CTVs and other common devices such as smartphones, tablets, and PCs may now access OTT content.

What is CTV (Connected TV)?
Source: Fall Off The Wall

While this may sound confusing, the foremost thing to remember when comparing CTV vs OTT programming is that OTT material is seen through CTV.

Some examples of CTV are:

  • Roku TV
  • Amazon Fire TV
  • Apple TV
  • Samsung Smart TV
  • Google Chromecast
  • Android TV

The Growing Impact of OTT and CTV in the Business World

The Growing Impact of OTT and CTV in the Business World
Source: Digital Dealer

Hyper-personalized Experience

Although traditional linear TV still plays an indispensable role in reaching a considerable proportion of the population, OTT content is showing its outstanding advantages by customizing each viewer’s experience. Enterprises can effectively target specific demographics with OTT advertisements, such as classifying various aspects such as: age, gender, location, financial capability, ethnicity, etc. Companies may narrow down their ideal demographic via OTT content rather than broadcasting to a large audience as they would with TV commercials.

More Data, Better Precision

Thanks to OTT advertising technologies, enterprises may now target audiences based on factors such as age, gender, location, hobbies, and viewing habits. Meanwhile, linear TV only used broad data from Comscore and Nielsen, which had huge margins of error and only supported top-of-funnel advertising at best.

Eliminate the Intermediary

By deploying OTT campaigns internally with DSPs, companies have more say over where their ads appear. You may use programmatic technology to make rapid and cost-effective decisions about where and when your ads will display, down to the specific programs and audiences.

More Effective Measurement

In order to evaluate CTV in comparison to KPIs such as VCR, digital marketers are increasingly resorting to more complex methodologies. Brands can evaluate the efficacy of their media tactic by using more sophisticated CTV measurements capabilities, such as attribution against onsite page visits or actions and external Third-Party solutions like foot traffic or brand lift.

CTV Vs OTT: Comparing the Differences

If a company wants to reach its intended demographic via digital advertising, it must have a firm grasp of the distinctions between CTV and OTT. While both platforms offer unique opportunities to reach viewers in the digital streaming space, they have distinct characteristics that set them apart.

CTV Vs OTT: Comparing the Differences
Source: Strategus
FactorsOTT (Over-the-top)CTV (Connected TV)
Audience reach and demographics• Provides a vast audience reach with diverse demographics.
• Appeals to viewers of all ages, interests, and geographic locations.
• Accessible through various devices.
• Specifically targeting viewers who consume content on television or TV-connected devices. 
• Offers a more traditional TV viewing experience, appealing to households.
Pricing modelsOffers flexible pricing models including: 
• Subscription-based: Pay a recurring fee for unlimited access to content (e.g., Netflix, Hulu).
• Ad-supported: Access content for free but must view ads during playback (e.g., YouTube, Crackle).
• Hybrid models: Combine subscription and ad-supported options.
• Primarily follows ad-supported models, allowing viewers to access content for free while watching ads.
• Some provide ad-free watching for a monthly cost through a membership program.
Ad targeting capabilities• Uses advanced ad targeting capabilities based on user data and behavior.
• Enables advertisers to target specific demographics.
• Leverages data collected from user accounts and interactions to deliver personalized and relevant ads.
• Provides similar ad targeting capabilities to OTT platforms.
• Utilizes data collected from smart TVs and streaming devices.
• Allows for targeted advertising to the appropriate people at the correct time.
User behavior and engagement• Offers high user engagement through on-demand content consumption.
• Users can freely choose their preferred watching option.
• Provides interactive features, personalized recommendations, and additional content options.
• Provides a lean-back viewing experience similar to traditional TV.
• Offers a more relaxed and passive content consumption experience.
• Limited user control over content playback with essential functions handled by remote controls.

Picking the Right Platform for Different Business Models

With the proliferation of CTV (Connected TV) and OTT (Over-The-Top) platforms, it’s becoming more important to grasp their differences in order to choose the one that best fits certain business models.

Picking the Right Platform for Different Business Models
Source: LinkedIn

OTT for B2C Businesses

OTT platforms are generally more suitable for B2C (Business-to-Consumer) businesses.

White-label OTT platforms are focused on reaching customers where they already are – on their smart TVs, smartphones, and other streaming devices. B2C businesses can leverage OTT platforms to reach a larger audience, engage with consumers, and monetize their content through subscription or ad-supported models.

On the other hand, B2B (Business-to-Business) businesses typically have a narrower target audience and require communication channels that cater specifically to professionals and industry-related needs. B2B businesses often rely on industry-specific events, trade shows, professional networks, and direct business partnerships to reach and engage their target audience.

CTV for B2B Businesses

In contrast to OTT, Connected TV (CTV) provides a completely different aspect. CTV content is generally more suitable for B2C (Business-to-Consumer) businesses.

Let’s take a look at why CTV is mostly suited for B2B business:

  • Exact targeting: Unlike the goal of B2C businesses using OTT services, when reaching as many audiences are the top priority. CTV enables accurate targeting at the individual level by using third-party databases with information on firm size, industry, job type, intent, and other usual B2B media purchases. The data generated from CTV is said to be accurate and provides more valuable insights.
  • Optimal Cost: Undoubtedly, CTV advertising has a higher CPM (Cost Per Mille) than other forms of advertising. However, you’ll see substantially lower rates when you take into account the exact targeting and the decreased waste.

Therefore, it seems that B2B businesses most benefit from CTV advertising due to its ability to reach and engage customers in a targeted manner. This capability is well-suited for B2B businesses that aim to promote consumer products, services, or brands.

Which Platform is Better for Startups, SMBs, and Large Corporations?

Small and medium-sized businesses (SMBs) frequently have limited resources and need inexpensive methods to contact their customers. OTT platforms provide a more affordable option in this regard, with many price tiers to choose from.

In contrast, large businesses may have the resources to investigate both OTT and CTV options. The extensive reach and sophisticated ad-targeting capabilities of OTT platforms are a boon for large firms with a business-to-consumer (B2C) emphasis while CTV platforms may be more appropriate for B2B-emphasis organizations.

Which Platform is Better for Startups, SMBs, and Large Corporations?
Source: Keynes Digital

Embrace Change and Make The Right Choices with SupremeTech

Generally speaking, it is important to thoroughly consider your individual demands, target audience, and marketing goals while deciding OTT vs CTV for your organization. The benefits of OTT and CTV platforms are distinct, and they each serve a different kind of company.

As you navigate this decision-making process, consider engaging with a trusted technology partner like SupremeTech. As a product-driven development company with expertise in digital solutions and a commitment to exceptional results, we pride ourselves on providing valuable insights and support to help you deliver the best choice for your business.

One solution you may want to explore is OTTclouds, an OTT streaming solution offered by SupremeTech. OTTclouds provides a comprehensive platform for streaming media content and can be a valuable asset in reaching your target audience effectively. Don’t hesitate to contact us for the earliest advice and support!

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      Hello everyone! I'm Linh, a front-end developer passionate about discovering effective methods for system development. When I first entered the tech industry, I faced challenges organizing UI components logically and reusable. This experience motivated me to seek strategies to optimize my workflow while ensuring that the products I developed were easy to scale and maintain. Recently, I explored the concept of Atomic Design, which has become a guiding principle for me in tackling these challenges more systematically and scientifically. This approach has significantly influenced my design thinking. Through this article, I aim to inspire you and offer a fresh perspective if you're also looking for solutions for your systems. Taking Cues From Chemistry Looking for a way to build and create a design system reminds me of developments in other fields and industries. Many areas, such as design and architecture, have developed smart modular systems to produce incredibly complex things like airplanes, ships, and skyscrapers. These thoughts take me back to my school days in chemistry labs. The idea is that all matter—whether solid, liquid, gas, simple, or complex—is made up of atoms. These atoms bond to form molecules, which combine into more complex organisms, eventually creating everything in our universe. Similarly, systems built up from smaller components are more logical and connected. We can break the entire system into basic building blocks and work from there. That’s the core idea of atomic design. What Is Atomic Design? Atomic Design is an interface design methodology that focuses on creating a system of components rather than entire pages. Introduced by Brad Frost in 2013, this approach emphasizes using small, independent elements that can be reused and combined to form a cohesive whole. This strategy facilitates quicker product development, promotes a unified interface, and simplifies maintenance. “Atomic Design is a methodology where designers prioritize creating individual components and then combine them, rather than designing entire pages.” Atomic Design can enhance the design development process, promoting consistency, adaptability, and efficiency across projects. By applying the principles of Atomic Design, developers and designers can collaborate within a cohesive design system, ultimately delivering a scalable and high-quality user experience. Atomic Design organizes components into five levels, progressing from simple to complex, as illustrated above: Atoms: These are the most basic components, such as HTML tags like buttons, inputs, labels, and icons.Molecules are combinations of two or more atoms that create more complex components. For example, a form group consists of an input and a label.Organisms are more complex UI components of multiple molecules and/or atoms. For instance, a form can comprise several form groups and buttons.Templates are layout frameworks created from organisms and molecules. They define how these components are arranged on a page but do not contain actual data or content; they represent an abstract structure.Pages: These are specific instances of templates where real content is added to create complete web pages or applications. Pages include all necessary components—atoms, molecules, organisms, and templates—along with specific content for end users to interact with. In the following sections, we will explore each level of Atomic Design in detail. Atoms Similar to atoms in nature, these elements may seem abstract, but they are the foundational building blocks of all our user interfaces. In web interfaces, atoms are the fundamental HTML elements, such as labels, inputs, and buttons. As the smallest components, they cannot be broken down any further. Atoms can also be abstract concepts, including colors, fonts, and even more intangible UI aspects, like animations. Molecules When we combine atoms, things become more interesting and tangible. Molecules are groups of atoms that bond together and serve as the minor basic units of a compound. They possess unique properties and act as core elements within our design system. For example, when atoms like labels, inputs, or buttons stand alone, they are useless. However, when combined into a form, they can work effectively together. Molecules can be simple or complex and designed for reuse or one-time use. A molecule can have multiple variants (similar to components in a Variant in Figma) intended for different contexts or interactions (such as hover, pressing, or after a delay). Organisms Molecules provide us with building blocks to combine to create organisms. Organisms are groups of molecules that come together to form a more complex and complete structure. Organisms can consist of similar or different elements. For instance, a website header might include a logo, menu, and search box. When you visit the category page of most e-commerce websites, you'll see product listings displayed in a grid format, composed of smaller components like images, titles, captions, etc. Templates Templates are combinations of organisms that create complete pages. They focus on the basic content structure rather than the final content. Templates help clearly define important properties such as image sizes and text lengths, thereby establishing an effective system for managing dynamic content and ensuring alignment with the design. “You can create good experiences without knowing the content. What you can’t do is create good experiences without knowing your content structure. What is your content made from, not what your content is?” Pages Pages are specific instances of templates. Placeholder content is replaced with representative content to depict what end users will see accurately. In simpler terms, pages are templates filled with real data for presentation purposes, offering the most realistic view of the design. Developers and designers will test how templates work with actual content, allowing designers to return and adjust to molecules, organisms, and templates as needed. Benefits Of Applying Atomic Design In User Interface (UI) Design Consistency Atomic Design utilizes a modular approach, ensuring each interface element adheres to a consistent design language. When a component, such as a button or color, is modified or updated, these changes are automatically reflected across all pages, maintaining uniformity throughout the product. This consistency is crucial for large and complex design teams, where smooth and synchronized updates are essential. Reusability Reusability is one of the most significant advantages of Atomic Design. By defining basic components in a standardized way, you can reuse them throughout different contexts and parts of the product. Due to this reusability, designers and developers can quickly integrate complex interfaces from standardized small components. For example, a button designed according to the standards can be used on various pages, from the homepage to product pages and forms, without needing to be recreated. This not only minimizes repetitive work but also ensures consistency across the entire design system. Atomic Design's reusability also promotes flexibility. It allows for easy updates or replacements of a component across the system without changing every detail on each page. Maintainability Atomic Design enables designers and developers to efficiently monitor and modify specific interface parts without impacting the entire system. The team can directly adjust the associated atoms or molecules when updates are required for a component, such as a button or color. These changes will automatically be reflected across all instances of that component. This approach reduces errors, minimizes repetitive tasks, and ensures that updates are consistently applied throughout the system. Scalability Like maintainability, Atomic Design allows designers and developers to expand the system by adding new components at the appropriate levels without disrupting the overall structure. For instance, if a new type of button or content combination is needed, the team can create new atoms or molecules and seamlessly integrate them into existing organisms and templates. This method enables a system to quickly scale from a small application to larger, more complex products with many new pages and features while maintaining structural integrity. 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For more insights into Performance Testing, check out our blogs below: The Ultimate Guide to an Essential JMeter Performance Testing Tool Step 1: Application Optimization   1.1 Optimizing OPCache Infrastructure Team Responsible for configuring and fine-tuning OPCache on the server.Ensures that JIT (Just-In-Time) caching is enabled and that parameters align with system resources. 1.2 Database Optimization Back End Team Designs composite indexes to enhance query speed.Rewrites or optimizes SQL queries to improve efficiency and reduce execution time.Analyzes common queries and data flows. 1.3 Optimizing Laravel During Deployment Back End Team Considers activating Production Mode in Laravel.Executes the command php artisan optimize to optimize application configurations. Infrastructure Team Manages caching for configurations, routes, and views.Supports the deployment and integration of queues or jobs on the server system. Step 2: Preparing for Performance Testing Collaboration among teams is crucial to ensure that every preparation step is accurate and ready for the performance testing process. 2.1 Developing a Plan and Initial Estimates QC Team, Back-End Team Creates a detailed plan for each phase of performance testing.Proposes resource, time, and data requirements. Project Technical Leader (PTL) Reviews and approves the testing plan.Coordinates appropriate resources based on preliminary estimates. 2.2 Security Checklist Project Technical Leader (PTL) Develops a checklist of security factors to protect the system during testing. QC Team, Back End Team Review the checklist to ensure completeness and accuracy. 2.3 Preparing Test Data QC Team Creates accounts, test data, and detailed test scenarios.Writes test scripts to automate testing steps. Back End Team Assists in building complex test data or necessary APIs.Reviews and tests scripts to ensure logic aligns with the actual system. Step 3: Setting Up the Testing Environment Coordination between the QC and Infrastructure teams is essential to ensure an optimized testing environment is ready for subsequent phases. 3.1 Estimating Server Specifications Infrastructure Team Determines appropriate server configurations based on application needs and testing requirements.Provides optimal specifications based on available resources and product scale.Supplies information about physical resources and infrastructure to support testing. 3.2 Establishing the Testing Environment Infrastructure Team Installs and configures virtual machines for performance testing.Adjusts server parameters (CPU, RAM, Disk I/O) to meet testing criteria. 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This process of performance testing enables SupremeTech to optimize each stage effectively, ensuring our products achieve optimal performance before delivery to partners. With our experienced workforce, we consistently prioritize product efficiency and quality.

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