What is CTV?
A connected TV, also called CTV, is a television or connected device with an internet connection and a UI that enables users to access OTT content through applications. OTT is not CTV but CTV can be OTT (so can mobile, desktop, smartwatch, etc.) Examples include:
- Smart TVs – Ability to access OTT content through TV apps
- Gaming consoles – Microsoft Xbox, Sony Playstation
- Set Top Boxes/Multimedia Device – Roku, Apple TV, Fire TV
- Connected TV adoption has been steadily on the rise driven by the widespread availability of web-enabled televisions and a generation of inexpensive plug-in and set-top extensions
- By 2018, over 75% of US households will have a connected TV
- Consumption habits are shifting – digital media consumption is on the rise while cable subscriptions are decreasing
- In 2015, 4.9 million households that once paid for TV services no longer do, a jump of 10.9% over the previous year
- The number of cord-cutting households will accelerate another 12.5% in 2016
Why is it important?
- CTV advertising offers the same lean back experience as linear TV, with the audience targeting and measurement capabilities of digital
- Most connected TV placements are full-screen, mirroring linear TV ad experiences
- Digital has superior targeting capabilities over TV
- A TV-only strategy excludes millennials and the growing % of the population who do not have cable TV