Programmatic OTT vs CTV: What Marketers Need to Know
- Juan Pablo Sanchez-Guadarrama
- Sep 25
- 4 min read
If you’ve been in a marketing meeting lately, you’ve probably heard the acronyms OTT and CTV tossed around as if they’re interchangeable. They’re not. And as advertisers shift billions into streaming, knowing the difference matters.
OTT (Over-the-Top) and CTV (Connected TV) overlap, but they describe different things in the streaming ecosystem. In this article, we’ll break down the differences, analyze the data, and explore how programmatic buying works across both.
Quick Definitions
OTT (Over-the-Top): Content delivered via the internet without traditional cable/satellite. Examples: Netflix, Disney+, Pluto TV, Tubi, HBO Max. OTT can be watched on TVs, mobile, or desktop.
CTV (Connected TV): The device itself—smart TVs, streaming sticks (Roku, Fire Stick), or consoles—used to access OTT content.
In short: OTT = content, CTV = device.
Why the Distinction Matters
Measurement: OTT campaigns might count impressions across multiple devices, while CTV is focused on the living room screen.
Creative Strategy: Mobile OTT ads may require shorter, vertical-friendly videos, while CTV ads are typically full-screen, 15–30 seconds.
Targeting & Buying: OTT inventory can be fragmented across apps/platforms, while CTV often consolidates through DSPs and programmatic exchanges.
Market Growth Data
OTT and CTV are not just expanding—they’re reshaping global advertising budgets:
Global OTT video revenue will exceed USD $316 billion in 2025, up from ~$150 billion in 2019. (Statista)
Global OTT video advertising revenue is projected to surpass USD $210 billion by 2026, with AVOD as the fastest-growing segment. (PwC)
The average U.S. household now spends 46% of total TV time with streaming platforms, overtaking linear TV for the first time. (Nielsen)
CTV ad spending in the U.S. will hit $33.35 billion in 2025, with 98% of spend on video. (eMarketer)
CPMs (cost per thousand impressions) for CTV average $20–$40, compared to $5–$10 for OTT on mobile or desktop. (Digiday)
By 2027, programmatic CTV ad spend worldwide is forecasted to exceed USD $48 billion, representing nearly half of all programmatic video spend. (Statista)
These numbers underline the “premium factor” of CTV versus OTT: both are booming, but CTV commands higher CPMs because of better engagement and the lean-back environment.
Audience Behavior Differences
OTT Viewers are platform-hoppers. They may watch Netflix on mobile during commute, switch to YouTube on desktop at work, and then Hulu on a tablet at night. OTT campaigns therefore provide scale across multiple devices.
CTV Viewers are household audiences. CTV ads hit multiple members of a household at once, in a relaxed setting. This is why completion rates on CTV often exceed 90%, compared to OTT’s 60–70%. (Innovid)
Programmatic Buying: OTT vs CTV
Programmatic OTT
Inventory spread across many apps/platforms.
Often bought through supply-side platforms that aggregate publishers.
Targeting can span devices (TV, mobile, desktop).
Useful for broad reach campaigns where you want volume.
Programmatic CTV
Focused on the living room screen.
Typically higher CPMs, but higher engagement and completion rates.
Better suited for brand storytelling and premium creative.
Programmatic direct deals (PMPs) are more common to ensure brand safety.
Comparison Table
Case Study: Retail Brand Splits OTT & CTV
Mexico (LATAM Focus)
A large e-commerce retailer in Mexico split OTT vs CTV budget. Results:
OTT Campaign: 3.2M impressions, average CPM $9, CTR 0.8%.
CTV Campaign: 1.1M impressions, CPM $28, but a conversion lift of 22% and average order value up 15%.
U.S. (Contrast)
A U.S. quick-service restaurant brand tested AVOD platforms (Hulu, Peacock) against CTV direct deals:
AVOD OTT Campaign: Wide reach, especially among younger audiences. Cost-efficient but with higher drop-off (completion ~65%).
CTV Campaign: Premium placements during live sports streaming. CPMs nearly double OTT, but brand recall was 1.5× higher in Nielsen brand lift studies.
Lesson: OTT delivers reach; CTV delivers engagement. The best strategies mix both.
Challenges & Considerations
Fragmentation: OTT platforms have walled gardens; CTV inventory often overlaps across DSPs.
Ad Fraud: Pixalate reported 14.5% invalid traffic in open programmatic CTV in LATAM in Q3 2024. (Pixalate)
Measurement Disparities: No unified currency for OTT/CTV yet; Nielsen, Comscore, Innovid all use different methodologies.
Creative Adjustments: Brands must tailor video for small screens (OTT mobile) vs large screens (CTV living room).
Future-Proofing Your OTT/CTV Strategy
Rise of FAST (Free Ad-Supported Streaming TV): Latin America is seeing FAST adoption faster than the U.S. (Amagi). This will flood the market with inventory, creating opportunities for both OTT and CTV buys.
Shoppable TV Ads: QR codes and clickable CTV ads are now being tested by platforms like Roku and Amazon Fire TV. These formats blur the line between brand and performance media.
Cross-Screen Planning: By 2030, marketers will treat OTT, CTV, DOOH, and mobile as one converged video ecosystem. Expect agencies to sell “video reach” holistically rather than splitting OTT/CTV budgets.
Identity & Privacy: Without third-party cookies, OTT/CTV will lean heavily on household IDs, first-party data, and contextual signals.
Takeaways for Marketers
OTT = Scale. Good for awareness, broader reach, and cross-device coverage.
CTV = Impact. Stronger for storytelling, premium environments, and measurable conversions.
Both Together = Optimal. A hybrid strategy delivers the reach of OTT with the depth of CTV.
OTT and CTV are not competitors—they’re complementary. OTT gives marketers the ability to blanket audiences across devices. CTV delivers lean-back, high-quality viewing experiences that boost brand storytelling.
The smartest advertisers in 2025 aren’t choosing between OTT and CTV—they’re designing hybrid strategies that maximize the strengths of both.
Want help navigating OTT vs CTV? Talk to Buo about crafting a streaming media plan that fits your brand’s goals.
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