In the digital era, media consumption has undergone tremendous changes. Viewers are no longer limited to traditional TV watching. New formats have emerged, enabling content consumption anytime and anywhere. Alongside these changes, technologies related to advertising on these devices have also evolved.

Connected TV (CTV) has been around for some time, but in recent years its development has accelerated significantly. CTV refers to a TV connected to the internet through Smart TV technology or other devices such as game consoles or TV set-top boxes. However, if you are watching services like "KinoPoisk," Apple TV, or YouTube on your phone or laptop, this falls under the category of over-the-top (OTT).

It is important to note that CTV is a subset of OTT. OTT is a broader category that includes video viewing not only on televisions but also on computers and mobile devices. CTV implies viewing in a living room, often in a shared setting, while OTT viewing is more associated with individual watching on phones, tablets, or laptops.

Smart TV is a subcategory of CTV. Smart TVs have built-in internet connectivity features and pre-installed streaming apps. This makes these devices ideal for users who want to enjoy content quickly and easily without using external set-top boxes.

However, we should not forget about IPTV (Internet Protocol Television). IPTV is a method of delivering TV content via a dedicated internet protocol. Unlike OTT, which uses regular internet, IPTV works through private provider networks, ensuring stable quality and the ability to control traffic. IPTV is often used by major operators to provide television services with high-quality guarantees.

Advertising on TV, especially on CTV, is typically much more expensive than display advertising. This serves as an additional incentive for advertisers and publishers to understand the differences between formats. However, the differences between devices are not limited to viewing convenience and advertising costs.

Measurement (the process of tracking and assessing ad impression effectiveness) is a key reason why OTT and CTV require separate definitions. These mechanisms can vary significantly from device to device, making it difficult to apply the same measurement scenario. For example, small and large-screen devices require different methods for collecting data on viewership, user interaction, and other metrics.

To ensure accurate measurement, the MRC has defined OTT as a "content category," while CTV is categorized as a more specific "device category." In other words, OTT refers to the delivery method of content, while CTV specifically defines the device used for viewing that content — the TV.

Addressable TV, which allows for individually targeted advertising to different viewers on the same channel, should also be mentioned. This is achieved through the use of viewer data and is applied both in CTV and through traditional cable networks.

Background

For a long time, there were many interpretations in this area, and everyone had their own understanding of OTT.

Several years ago, the MRC clarified the definition of OTT: it is video that users can watch via internet services and apps on various devices (including Smart TVs, smartphones, tablets, and others) without using signals from cable or satellite operators.

Earlier, in 2021, the MRC refined the definition of CTV, linking it specifically to the device — the TV. CTV is digital video displayed on TV screens using internet-connected devices such as Amazon Fire, SmartTVs, apps, game consoles, and other set-top boxes with USB and HDMI interfaces.

Meanwhile, IPTV remains an important part of the television ecosystem, providing consumers with stable content viewing through provider networks.

Thus, streaming TV can be watched on a mobile phone, but that is not CTV. CTV is exclusively viewing on a television set.

Differences in Visibility and Effectiveness Assessment

When we talk about ad effectiveness assessment, CTV has one major drawback: measuring viewability.

When watching TV, especially during commercial breaks, viewers often leave the room or shift their attention to other devices. It is not uncommon for TV ads to be played to empty rooms. For this reason, CTV advertisers should pay more attention to engagement and attention retention metrics than their counterparts in digital advertising.

When viewing OTT on a mobile device or computer, view pixels are used to determine how long the ad stays in the viewing field while a person scrolls down the page.

Attribution is also a more challenging task in the CTV environment compared to OTT, where conversions are easier to track.

In the IPTV environment, measurement is simpler due to the controlled environment where providers can track viewer interactions with content and ads. Addressable TV also uses data from cable operators and network providers to determine ad effectiveness, requiring unique measurement approaches.

Campaign KPIs, such as page visits, registrations, and purchases driven by TV ads, almost always occur on another device, particularly on a phone or laptop.

CTV attribution requires the combination of multiple disparate signals to link a conversion to an ad impression, such as online searches, app downloads, and transactions. Attribution models use approaches based on signal combinations tied to IP addresses and/or device identifiers.

CTV and Smart TV

The main ad format on CTV and Smart TV is video advertising, shown before or during content playback. Typically, these are ad spots similar to traditional TV commercials. Due to the large screen and focused attention of viewers, such ads deliver high engagement. Key formats include:

• Pre-rolls and mid-rolls — standard ads shown before or during the main content.
• Banners and overlays — small graphic ads displayed on top of the main video content.

CTV allows advertisers to target users based on their device, app used, and content being watched.

Tracking pixels and SDKs are used to assess ad effectiveness.

OTT

Ad formats in OTT vary greatly because users can consume content on different devices — from smartphones to TVs. Main ad formats include:

• Video advertising — standard pre-rolls, mid-rolls, and post-rolls adapted for specific devices.
• Interactive ads — ads that allow users to interact with them (e.g., clicking for more information).
• Native advertising — integration of ad content that blends seamlessly with the main content.

OTT offers broad targeting capabilities due to the diversity of devices and platforms. Available options include demographic and geo-targeting, as well as retargeting.

In OTT, pixels are used to track clicks and conversions and gather detailed user data such as location, device used, and behavioral characteristics. However, methods may vary depending on the device.

IPTV

Advertising on IPTV is similar to traditional TV advertising as the platform is controlled by the provider. Main formats include:

• Linear ad slots — similar to traditional TV ads with predetermined time slots.
• On-demand ads — ads integrated into content available for on-demand viewing.

IPTV providers often provide detailed data about their subscribers, including their preferences.

Providers usually offer comprehensive and accurate data on ad viewing.

Addressable TV

This format allows for showing personalized ads tailored to each viewer or household, creating unique opportunities for personalization:

• Targeted video clips — ads adapted to the viewer’s demographic and behavioral characteristics.
• Interactive and dynamic ads — a format allowing viewers to interact with the content (e.g., using a remote control).

Here, unique data about specific households is available, allowing for highly personalized ad customization. This data can come from cable operators or other sources.

Addressable TV provides detailed information on user engagement. However, evaluating ad performance requires analysis of multiple signals.