Linear TV vs. CTV Advertising: What’s the Difference?

by The MNTN Team

7 Min Read

For decades, traditional TV broadcasting, also known as linear television, has stood for decades as the go-to means of delivering advertisements and connecting with consumers at scale. But over the past few years, Connected TV (CTV) advertising has emerged as the next evolution of television marketing.

There’s just one question: When it comes to CTV vs. linear TV, which is the better fit for a brand’s marketing strategy? Join us below as we take a closer look at the linear TV vs. CTV landscape to help you determine the answer for your business.

What Is Linear TV?

Linear TV is the traditional TV that we think of (in the days before streaming!). It is TV that is delivered by satellite or cable and is characterized by its fixed schedule and wide reach. Programs are scheduled and displayed at specific times on specific channels. Viewers tune in at those designated times to watch their favorite shows, sports events, news broadcasts, and so on. Linear TV viewing has been the norm since the very start of the medium.

How Does Linear TV Advertising Work?

Typically, marketers will purchase a 15-, 30-, or 60-second commercial slot in the Designated Market Area (DMA) that they want to target. Everyone in the DMA who is watching the channel where the ad space is purchased will see the commercial.

In addition to selecting the duration of the commercial, marketers choose specific channels and programs that align with their target audience. By analyzing TV viewership statistics, they ensure their ads run during shows or events that attract the right demographics.

The effectiveness of these ads is measured by metrics such as reach (the number of people who see the ad) and frequency (how often the ad is seen by the same person).

Advantages of Linear TV Advertising

Linear television advertising offers a few benefits, chief among them being the ability to reach a wide audience. You can get your ad in front of thousands of people by purchasing space in an entire DMA.

Additionally, running ads on well-known TV networks can help establish your brand as credible and trustworthy. The large screen and immersive viewing experience can enhance the impact of your ads, provided they are well-crafted, of course.

Disadvantages of Linear TV Advertising

The biggest drawbacks of linear TV advertising come down to limited targeting capabilities and difficulty in measuring the impact of your content. You can’t serve up bespoke content to any niche audiences, which means a large chunk of viewers might fall outside of your target demographic. And even if you are connecting with the right viewers, TV attribution is incredibly difficult without the right technology in place.

Producing and airing linear TV commercials can also be expensive, especially if you are purchasing slots during prime time. The lack of targeting capabilities, combined with high costs, will more than likely drive down your return on ad spend (ROAS) over time.

What Is Connected TV?

Connected TV (CTV) refers to internet-enabled television sets (as well as devices like gaming consoles and standalone streaming boxes like Roku and Apple TV) that allow viewers to stream content from platforms like Netflix, Hulu, Amazon Prime Video, and other similar networks. Unlike linear TV, CTV offers on-demand viewing, giving viewers great flexibility regarding what and when they decide to watch.

How Does Connected TV Advertising Work?

Just as with linear TV, serving up ads to CTV audiences requires purchasing advertising space. But you won’t have to reserve an entire DMA for CTV ads, and the purchasing process itself is a bit different.

Essentially, you sign up for a CTV advertising platform like MNTN, define your budget, select your audience, upload your creative, and you’re good to go.

You won’t have to purchase ad space in advance as you would with the traditional television model, either. Thanks to programmatic advertising, your ad management platform can purchase slots in real-time based on the audience criteria and campaign goals you provide.

The programmatic algorithm will insert ads dynamically based on viewer data, watch history, and preferences. And since you are bidding on the space in real-time, you’ll be able to maximize ad spend efficiency and cut down on waste.

Advantages of Connected TV Advertising

By making the leap to CTV ads, you gain the ability to precisely target specific audiences based on demographics, interests, and viewing habits. You’ll also be able to adjust campaigns on the fly, as you aren’t locked into a specific DMA or time slot. CTV ads are more cost-effective, as well, especially if you are targeting a niche audience.

Perhaps most importantly, you can track and measure just about everything. You’ll be able to analyze conversions, views, and more. With the right content and targeting plan, you’ll be able to connect with niche groups and transform them into customers.

Disadvantages of Connected TV Advertising

The biggest hurdle to CTV advertising is the fragmented nature of the industry. There are numerous streaming platforms these days, and many of them are launching ad-supported tiers. This fragmentation means that content-focused buys don’t create the same type of brand awareness as linear TV used to offer.

Summary of Key Differences

As you might expect, CTV and linear TV are different in several defining ways. The key differences of CTV vs. linear TV are as follows:

Audience Targeting

The biggest difference between linear TV vs. CTV is the way each does audience targeting. Under a traditional broadcasting model, you can reach a broad audience, which can be useful for mass-market products or brand awareness campaigns.

On the flip side, CTV targeting is much more granular. CTV provides precise targeting based on viewer data, a key functionality you can use to engage in highly targeted and personalized campaigns. Improving the precision of ad placement can drastically improve your return on investment (ROI) and help cut down on marketing waste in turn.

Ad Flexibility and Control

Linear television is known for its rigid advertising format. Once you purchase space in your preferred DMA, you are locked into your assigned time slots. Making changes to your campaign is difficult, if not impossible, once the provider schedules your content.

Conversely, CTV offers unparalleled flexibility. You can adjust and optimize your campaigns in real-time based on performance data and changing user preferences. If your content isn’t delivering the results you were hoping for, simply modify it and change course.

Measurement and Analytics

You’ll receive two primary types of performance data from linear television channels: ratings and estimated viewership. Neither of these metrics provides a full picture of your ads’ performance, which means you’ll have to do a lot of legwork to figure out which of your campaigns are actually performing up to expectations.

CTV platforms, on the other hand, provide robust analytics and detailed insights. You can track viewer behavior, engagement, and ad performance. Cumulatively, these bits of information help you understand what consumers want and what they don’t. You can use these insights to improve your campaigns and create more impactful ads altogether.

Learn More: CTV Measurement vs. Linear TV Measurement

MNTN Performance TV Takes CTV to the Next Level

CTV has solidified its position as the next stage of television-based marketing. But as we’ve noted, its one problem is that it’s incredibly fragmented, which makes it tough to advertise on multiple platforms and maximize your reach.

Enter MNTN Performance TV. As an MNTN user, you’ll enjoy access to premium inventory on 150+ streaming networks across numerous platforms. MNTN is also loaded with tools and resources designed to help you get more out of every CTV ad campaign. Our Creative-as-a-Subscription™ service connects you with top talent in the advertising industry. You’ll also get Verified Visits™ technology, our proprietary CTV attribution software designed specifically for CTV marketing.

Request a demo of MNTN Performance TV today to unlock the full potential of CTV advertising.

CTV vs. Linear TV: Final Thoughts

Linear TV still has its place in broad awareness campaigns, and it remains an effective tool for national and regional brands looking to generate buzz about their products. However, for most businesses, CTV is the better option nowadays. It offers precise control, flexibility, and cost-effectiveness.

If you power your CTV campaigns with MNTN, you’ll also enjoy unmatched tracking capabilities, premium inventory, and the opportunity to connect with your ideal audience. With that in mind, what are you waiting for? Add CTV to your marketing mix and accelerate your growth today.