What is CTV?

CTV, OTT, and streaming, depending on who you speak to its called many things. But what exactly is it?

Simply put, CTV, or Connected TV, refers to a category of devices that are connected to the internet and access apps that allow you to access and stream content on your TV.

This includes smart TVs, sticks and boxes that connect to your TV. Like an Amazon Fire Stick, Apple TV or Roku. Game consoles, and in some cases blue-ray players.

All of these devices enable you to download apps like Netflix, Disney+, Hulu, Prime Video, Peacock and stream your favorite content.

CTV is the media channel that marketers should think about first if their goal is to reach consumers on the big screen in their living room.

Reaching 88% of US households. CTV significantly exceeds the reach of traditional, linear, pay TV households. Which have dropped dramatically since their peak in 2014 at 90%+ to about 60% of the US.

Who is watching CTV?

In short, everyone is watching. Younger audiences do watch more than older audiences but those dynamics continue to shift as more and more viewers cut the cord.

Audiences under the age of 50 spend the majority of their TV watching time streaming.

Why is CTV so popular?

It’s all about selection and experience. CTV has the best content and the best selection. Over 80% of the 2024 Emmy Awards were awarded to shows that are only available on CTV. Shows like Shogun (Hulu), The Bear (Hulu), Only Murders in the Building (Hulu), Baby Reindeer (Netflix) and Hacks (Max).

CTV is also increasingly where you go to watch sports. Peacock posted record numbers for the 2024 Summer Olympics and delivered an experience and product that was far superior to its counterpart on linear TV.

Amazon has Thursday Night Football and will have the NBA in 2025. Both Peacock and Paramount+ stream Sunday NFL games. YouTube took Sunday Ticket from DirectTV starting with the 2023 season.

Content is important but so is product and experience. And while the bar is low for traditional cable TV, the experience on CTV is vastly superior. Selection is essentially unlimited and isn’t restricted to linear schedules. The UI is attractive, intuitive, and recommendations are relevant. The viewer is in control. In control of what you choose to watch and what the schedule is.

But what about ads?

Good question. Well the good news for advertisers is more apps offer ad supported plans. And consumers, looking to save a few bucks, are increasingly opting into those pans.

Netflix claims that 50% of their new subscribes are choosing the ad supported plan. That number increases to 60% for Disney+.

And FAST (free ad supported streaming TV) continues to drive adoption with higher monthly active users and time spent. Apps like Tubi, Roku TV, Pluto and Samsung TV+ have become go-to destinations for viewers.

No discussion on CTV is complete without including YouTube. The biggest player in the ad-supported CTV game. Time spent viewing YT content on CTV exceeds all other apps and continues to grow.

Time spent watching CTV, September 2024.

So what is CTV?

CTV is what you are watching tonight. It’s what your target customer is watching.

To learn more about how we can Dial-Up your CTV campaigns and deliver results for your brand contact us today.

CTV The Right Way @ Dial-Up Media