Addressable TV vs Connected TV (CTV): What’s the Difference?

by The MNTN Team

7 Min Read

With traditional television advertising methods on their way out, several contenders are stepping up to take their place. Currently, two of the top options are addressable TV and Connected TV (CTV). However, before you choose a successor to add to your marketing mix, it’s important to understand the differences between them.

In this article, we’ll take a deep dive into Connected TV vs. addressable TV. In our head-to-head comparison, we’ll cover how the two approaches work, as well as the advantages and disadvantages of each.

What Is Addressable TV?

Addressable TV is a targeted advertising strategy that allows you to deliver customized commercials to specific households or individuals, typically through traditional cable or satellite TV systems.

Unlike traditional linear TV advertising, which broadcasts the same ad to all viewers watching a particular program at once, addressable TV makes use of data and software to segment audiences and deliver relevant content.

In other words, the addressable model breaks away from blanket advertising, allowing you to present audiences with content that better aligns with their preferences and interests. By adopting such an approach, you can more effectively connect with viewers and reduce advertising waste.

How Addressable TV Advertising Works

Addressable TV advertising uses consumer data, such as demographic information, behaviors, and past interactions with your brand, to identify and segment audiences. You can gather these metrics through partnerships with cable providers, satellite companies, and streaming services.

The big difference between addressable TV ads and traditional ads involves their methods of delivery. Traditionally, people in the same market would see identical commercials during an ad break. With addressable TV, people in the same market may be watching the very same show but see different ads based on their individual preferences.

Advantages of Addressable TV Advertising

The big advantage of addressable content is that it allows you to target niche audiences and reach precise segments with tailored content. That, in turn, not only increases the effectiveness of your ads but also enhances the viewing experience for consumers, as they won’t be bombarded with irrelevant content.

Alongside that, addressable TV ads allow you to measure the reach and impact of your content. You can pinpoint what works and what doesn’t, thereby crafting more effective campaigns and ads. Learning what resonates with your audience is key to improving return on ad spend (ROAS) and minimizing waste.

Disadvantages of Addressable TV Advertising

While addressable ads certainly offer some major perks, the model itself isn’t foolproof. One concern is that it lacks scalability, which means it may not be a good fit if you are looking to reach mass audiences, quickly, or drive brand awareness.

Another concern involves privacy and data protection. Today’s consumers are more conscious of what businesses do with their information, so you must ensure that you are obtaining users’ consent before collecting their data and using it for targeted advertising. Failing to be transparent can lead to reduced trust and tarnish your company’s reputation.

What Is Connected TV?

Connected TV refers to televisions that are connected to the internet and can access streaming content from various sources, such as streaming services, apps, or websites.

CTV offers viewers a wide range of content options at once, all of which are deliverable on demand. Users no longer have to watch shows on a fixed schedule, and CTV owes much of its success to that convenience.

And while many streaming services offer ad-free versions, many users opt for ad-supported options to keep costs down. That’s where CTV advertising, a branch of OTT advertising, comes into play.

How Connected TV Advertising Works

CTV advertising allows you to reach audiences by streaming your marketing content onto smart TVs or other internet-connected devices. Similar to addressable TV advertising, you can deliver targeted content to users based on factors such as demographics, interests, or viewing habits.

But by partnering with streaming platforms or ad networks, you can access CTV inventory on popular streaming services and deliver ads to viewers in between content. In turn, you’ll likely enjoy higher engagement as you’ll be targeting viewers who already align with your ideal audience.

Advantages of Connected TV Advertising

By reaching viewers on their preferred platforms and devices, CTV advertising allows for far more meaningful and targeted connections.

Additionally, CTV advertising gives the ability to measure everything from impressions to conversions and all the important milestones in between. You can then leverage your data-driven insights to target specific segments with relevant content, maximizing the effectiveness of your campaigns. If something resonates with your audience, you can repurpose that content in future campaigns. Conversely, if a particular ad falls flat, you can dive into the data to find out what went wrong and fix it.

Disadvantages of Connected TV Advertising

Overall, CTV advertising offers plenty of perks. However, there’s one potential hurdle to the approach that cannot be ignored: It’s very fragmented.

On average, Americans have subscriptions to three different streaming services at any given time. That kind of market breakdown can make it tough to reach members of a large audience all at once. Many viewers also subscribe to ad-free plans, which further splits the space.

All of that division creates another problem in and of itself. Managing Connected TV campaigns can be quite complex, as you’ll need accounts for each streaming service. You will also have to customize your ads to align with the formatting requirements of the various platforms. While the formatting guidelines are similar, there are subtle differences that can make ensuring ad compatibility a bit tricky.

Fortunately, all-in-one solutions like MNTN Performance TV can eliminate all of these challenges. Our platform gives you access to ad inventory on all of the top-tier streaming networks, simplifying campaign management and allowing you to tap into the power of targeted television marketing.

Summary of Key Differences

Now that you understand both terms at the basic level, you may still be unsure about the exact differences between addressable TV vs. Connected TV.

Addressable TV offers much-needed precision to the traditional television marketing model still on cable or satellite TV systems. It allows you to target specific audiences and measure (to a small degree) the results of each campaign. It’s designed for cable and satellite services.

Connected TV advertising one-ups these successes by offering targeting at scale, not through traditional cable or satellite, but through streaming services. It is far more flexible, allowing you to adapt each campaign to align with the unique needs and goals of your brand. CTV offers the prestige of traditional TV advertising with the measurability of digital marketing.

Performance TV Dominates Streaming Advertising

MNTN Performance TV represents the next evolution of television advertising. Our dynamic platform allows you to purchase inventory on multiple streaming services and run all of your campaigns from a centralized hub. By consolidating your campaigns, we put you in control and provide a holistic view of your marketing efforts.

Additionally, MNTN offers a variety of support services and tools designed to help you get more out of your CTV ads. From our Creative-as-a-Subscription™ service to our advanced reporting tools, we give you the resources needed to maximize your return on investment.

Check out MNTN today by requesting a demo.

Addressable TV vs. Connected TV: Final Thoughts

When it comes down to choosing between Connected TV vs. addressable TV advertising, both represent exciting opportunities for you to engage with your target audience. By integrating these concepts into your marketing mix, you can create more impactful campaigns that resonate with your target audience and drive brand growth.