Streaming content is now the norm, and more consumers watch programming via CTV (connected TV) and OTT (over-the-top) versus traditional broadcast or cable TV. As such, ad trends are in line with consumer preferences. The spike in CTV and OTT advertising locally has been significant, and BIA Advisory Services listed it as the fastest-growing tactic for 2025. It held the same honor in 2024.
As more of your customers venture into buying it, they have questions. The first may be the difference between CTV and OTT. OTT refers to streaming services that deliver content over the internet. Examples include Netflix, Hulu, Max, AppleTV+ and Disney+. When subscribers have an ad-supported subscription, they’ll see non-skippable ads before, during or after a show or movie. OTT is specific to mobile devices. CTV is a type of OTT that plays only on smart TVs or through connected devices like Roku.
Advertisers also want to know how targeting works, what inventory these ads will run on and how often. They have concerns about ad fraud and are seeking transparency. You can guide them through these questions with these tips and best practices.
CTV and OTT Ad Buyers Note Challenges
In a recent study of companies buying CTV and OTT, many had positive responses, including its ability to reach audiences and help them meet goals. However, there were some downsides as well. In a question about the challenges with spending on CTV and OTT, the top three were:
- Lack of transparency on where the ads run
- Accurate measuring
- Managing frequency across platforms
These challenges apply to programmatic purchases versus direct to the streamer. Many streamers have self-service CTV and OTT advertising buys but may not provide the exact programming. Programmatic buying occurs just like display ads; inventory is available from platforms or networks. Be aware that the quality of this varies depending on the DSP (demand-side platform).
The bigger consideration is that those seeking transparency down to the programming level are treating CTV and OTT like a broadcast TV buy. It’s the only way to “target,” but it’s deeply flawed and antiquated.
Addressing transparency must begin with a reset of mindset.
CTV and OTT Ads Target the Audience
With programmatic CTV and OTT, you target an audience, not a program. You have many attributes to build this targeting, including demographics, behaviors, interests, ZIP codes, states and DMAs (designated market areas).
Before these capabilities, ad buyers assumed what ideal customers would watch. They may have chosen programming like the Golf Channel if they wanted to reach high-income males over 50. However, many people who aren’t in this demographic enjoy golf. A programming approach can actually lead to wasted impressions on an unintended audience.
With defined targeting, the ads run across programming to reach an intended group. This means the frequency of ads reaching those folks increases.
There are other transparency elements that you can explain as well.
Transparency: CTV vs. OTT Placement
You can easily define a streaming ad buy’s CTV and OTT split with a digital advertising platform that allows you to choose blends. CTV blends allow advertisers to decide plays on small versus large screens. It may be very important to advertisers. Some may want everything to be on CTV because of their target audience or their desire to have ads play only on TVs. Others may prefer more OTT if they are trying to reach demographics that stream more on mobile.
Measuring OTT and CTV Advertising Accurately
OTT and CTV are digital tactics, which means there are metrics to gauge performance. The reporting would include:
- Impressions
- Completions
- Completion rate (the percentage of completed video views)
- Spending on the campaign
All these metrics would also be shown by platform or network.
Another aspect of these ads is someone taking an action. An OTT ad can have a link to click at the end. CTV ads aren’t “clickable,” but more are becoming shoppable by including a unique QR code on the screen. Most CTV watchers also have their phones nearby to scan the code, and people like the ads’ shopability. A report on this found that 70% of consumers like QR codes, and 62% would scan them.
It’s another way to ensure accurate attribution from an ad campaign to conversions and sales.
Protecting Against Ad Fraud and Waste in CTV and OTT
According to the same study referenced above, 81% of advertisers have fears of ad fraud in their OTT/CTV campaigns. The key to minimizing it is reducing invalid traffic, which the industry has made strides toward. The DSP should build these safeguards into the platform. When you have an advanced DSP partner, they:
- Use technology to track and measure brand safety and prevent ad fraud.
- Incorporate advanced fraud protection tools for audience verification, data quality checks and partnerships with verification providers.
- Support viewability and audience attention improvements.
- Offer transparency around the supply path to inventory.
- Provide full visibility of campaign metrics.
Be Confident in Selling CTV and OTT with Marketron NXT
We understand how critical transparency is in building and maintaining trust with your customers. Transparency in programmatic CTV and OTT buys is a leading priority for our third-party digital platform, Marketron NXT.
NXT’s DSP is the industry leader and encompasses all these best practices. Additionally, our reporting includes all the major metrics with details on platform or network. Our sophisticated targeting and ability to set CTV/OTT blends ensure you deliver a campaign that meets customer goals.
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