Streaming, OTT, and CTV Basics Quiz

Study Notes

Streaming: An overarching term for delivering audio and visual content through the internet, encompassing various devices.
Over-the-Top (OTT): Streaming content over the internet to any compatible device. OTT requires a robust internet connection and a device equipped with apps or browsers. Originally focused on video, now encompasses all internet offerings.
Connected TV (CTV): Streaming content from the internet specifically on a television screen. CTV devices include streaming devices like Roku or Amazon Fire TV, gaming consoles, and smart TVs with built-in internet connectivity.

Subscription Video On Demand (SVOD): Viewers pay a recurring fee for access to content with limited or no ads. Examples include Netflix, Disney+, and HBO Max.
Advertising-based Video On Demand (AVOD): Viewers access content for free or at a reduced price in exchange for watching ads. Examples include Tubi, VEVO, and PlutoTV.
Transactional Video On Demand (TVOD): Viewers purchase content on a pay-per-view basis. Examples include platforms like Google Play, iTunes, and Vimeo.

Free Ad-supported Streaming Television (FAST): Apps, services, or channels that stream scheduled programming similar to linear TV experiences. Examples include The Roku Channel, Tubi, and Amazon Freevee.
Virtual Multichannel Video Programming Distributors (vMVPD): Service providers that bundle and deliver multiple channels to subscribers over the internet. Examples include YouTube TV, Sling TV, and Hulu + Live TV.

Streaming Ad Advantages:
- Precision: Detailed user data allows for more precise targeting, reducing ad waste.
- Lower Costs: Smaller screen sizes and lower engagement lead to generally cheaper ad rates.
- Interactivity: Users can easily access a brand's website or app through a single click.
CTV Ad Advantages:
- Engagement: Unskippable ads and shorter ad segments increase viewer engagement.
- Resilience: Focus on aggregated household data and contextual clues makes CTV less reliant on user tracking, enabling it to thrive in a cookie-less world.
- Co-viewing: Larger screens often facilitate shared viewing experiences, creating more effective ad environments.
Ad Obstacles for Both OTT and CTV:
- Transparency: Marketers may not always select content for their ads, resulting in uncertainty around where they will appear.
- Fragmentation: Various platforms and measurement methodologies create a fragmented landscape, hindering unified performance insights.
- Fraud: The lack of consistent measurement standards and user/device IDs makes the streaming ecosystem susceptible to fraudulent activity.

Streaming is a dominant TV viewing format in the US, growing rapidly since the early 2000s.
Younger viewers (18-34) spend significantly more time with streaming compared to other TV sources.
Major streaming players are investing heavily in sports and live event programming.
FAST streaming services provide a familiar linear viewing experience without the need to choose specific content timings.
CTV devices are becoming increasingly widespread, with significant growth in the U.S. and globally.

Consumers are facing concerns about the increasing cost and complexity of subscribing to multiple SVOD services.
Privacy regulation changes could pose challenges for data-driven advertising in the streaming ecosystem.
Accurate and unified measurement across OTT and CTV channels remains a challenge.

The traditional distinction between linear and streaming TV is blurring as the TV landscape becomes increasingly digitized.
Marketers face the imperative of understanding and targeting audiences across diverse streaming platforms.
Reliable measurement and metrics are crucial for navigating the evolving streaming environment.