The Convergence of Linear and OTT/CTV TV Advertising

Linear TV (traditional TV /cable/Satellite that is pre-programmed according to a schedule) is not going away anytime soon. More than two-thirds of US house households still have pay tv. The predicted death of linear TV is not only inaccurate but misguided in my opinion. Much like many were predicting the death of email several years ago. Linear tv still offers strong audience reach.

OTT (over the top) is a delivery method for content that uses the internet instead of traditional cable or satellite TV services. OTT apps such as Netflix, Hulu, and Amazon Video are alternative ways to watch TV.

CTV (connected TV) is a television set with internet capability, allowing it to stream content from OTT apps.

As the way audiences consume TV content has changed dramatically, advertisers have shifted media spend to follow. By 2025, the combined U.S. ad spending on linear and connected TV (CTV) platforms will exceed $93b, from just under $80b this year—all of that growth will come from CTV. (Emarketer)

Linear TV advertising is not going away anytime soon. In fact, it remains a key part of the TV ecosystem, reaching a large audience with high-quality programming. However, the rise of OTT and CTV has created new opportunities for advertisers to reach their target audiences.

I believe there are 3 ways that marketers and advertisers can benefit from this convergence.

First, Linear TV and OTT/CTV can complement each other. Linear TV offers reach and scale that OTT/CTV cannot match. OTT/CTV, on the other hand, offers targeting and personalization that Linear TV cannot match. By using both Linear TV and OTT/CTV, advertisers can reach their target audience with the right message at the right time.

Second, Linear TV and OTT/CTV can be used together to create a more holistic and effective advertising campaign. Advertisers can use Linear TV to generate awareness and reach a large audience. They can then use OTT/CTV to target those who have been exposed to the Linear TV ad and drive them to take action.

Third, Linear TV and OTT/CTV can be used to reach different audiences at different stages of the customer journey. Advertisers can use Linear TV to reach a mass audience with a general message. They can then use OTT/CTV to target a smaller group of people who are more likely to be interested in what they have to offer.

The convergence of Linear TV and OTT/CTV is creating new opportunities for marketers and advertisers. By understanding how Linear TV and OTT/CTV can complement each other, marketers and advertisers can create more effective advertising campaigns that reach their target audience with the right message at the right time.

What has been your experience with linear and OTT/CTV advertising?