CTV & OTT Advertising: The Trends, Challenges, and Future

There is an increase in entertainment sources accessed by people, as they continuously seek newer ways to engage with content. This growing love for entertainment has also created expanding opportunities for advertising through entertainment channels. OTT and CTV marketing have emerged as powerful strategies in this evolving landscape, allowing brands to reach audiences through streaming platforms. OTT (Over-the-Top) and CTV (Connected TV) are among the latest innovations in entertainment. These channels offer flexibility, enabling viewers to access content from anywhere at any time. This convenience, combined with the recent global shift in media consumption habits, has fueled the rapid growth of OTT and CTV marketing. The future of advertising is increasingly shaped by these platforms, making them essential for brands looking to maximize engagement. First, let us look into the differences between both of them and then explore further.

OTT and CTV Advertising

Binge-watching shows are a habit of most youngsters in today’s world. OTT platforms are the major source of most of these series and shows. Over-the-top (OTT) is a method of streaming media through the internet. As the name suggests this channel is over the top of other channels like broadband cables, satellite, and other formats. Video content is mostly delivered to users through OTT platforms. This is more convenient than the traditional TV services. Some of the famous OTT platforms are Netflix, Hulu, and Disney Hotstar. OTT reaches a wider range of audiences and it focuses on reaching the precise audience through the segmentation of content. This segmentation is based on the data they collect like age, income, location, and watching behavior of users. The content of OTT can be delivered to users through laptops, desktops, and mobile devices. This flexibility gives OTT a higher appeal among youngsters. There are different types of OTT like SVOD(Subscription Video On Demand), AVOD(Advertising Video On Demand), and TVOD(Transactional Video On Demand).

CTV (Connected TV) is the medium for watching OTT content and other streaming services. CTV helps us to watch content through the internet. Gaming consoles and smart TVs are examples of CTV. Nowadays even normal TVs can be converted into CTVs with the help of gadgets like Amazon Firestick. Advertisements in CTV are usually in video formats and banner formats.

Now we have a basic idea about both OTT and CTV. Let us explore the trends and future of 

OTT and CTV.

Trends And Future Of OTT and CTV Advertising

The major trend in OTT and CTV is a positive sign for advertising. Mostly advertisements that are in augmented reality, virtual reality, and more interactive, similar to games and quizzes are going to own the market. These innovations from the side of advertising have created a boom in marketing through these channels. Personalization is another trend that will be very active in 2024. Personalization can make the users feel valued and this can also enhance the advertising efforts. Automatic Content Recognition and Artificial Intelligence are some of the other trends that will happen in the immediate future. Implementation of shopping QR Codes in advertisements is also a major trend that is going to change the whole scenario. Sports being shown live on OTTs and CTV are also important. Many people will be seriously interested in sports and advertising in between sports is a great strategy. Minimizing the wastage of resources in advertising, flexibility, and cost-effectiveness provide OTT and CTV a secure future. The introduction of non-skippable ads can also ensure marketers a huge opportunity in the future. Increased audience retention is an advantage of OTT and CTV for advertisers. Ad-supported streaming services are preferred by people due to the increased number of subscriptions needed for watching content. Now let us move into the challenges of OTT and CTV.

Challenges Of OTT and CTV

Different challenges are concerns for OTT and CTV advertising. Some of them are : 

Ad Fraud - This is a challenge that is almost faced by every channel of advertising. Lower rates of ad fraud are a boon still many fraudulent activities are happening in this field. Device spoofing, app spoofing, bots, and automation are some of the major types of ad fraud.

Data Concerns - Privacy is something that every user wishes for. Safely handling data can ensure the trust of users. The mismanagement of data can lead even to the closure of the brand. User consent should be collected at every stage of data collection. Laws regarding data management should be thoroughly studied and followed

These are the major challenges faced by OTT and CTV. The advertisements delivered through OTT and CTV should be measured for better marketing campaigns. Apptrove MMP can be of help with this. Apptrove can be the right choice for your business growth. Apptrove will help not only in advertisement measurement but also in the overall growth of the brand.