Linear TV vs OTT Streaming: Differences & Similarities Explained

by The MNTN Team

6 Min Read

For the better part of the past century, the only way to watch televised content was via linear television. And though it’s been around for decades, it has since been surpassed by over-the-top (OTT) streaming. OTT user penetration is projected to reach 71% by the end of 2024.

OTT advertising is here to stay, and as it continues to grow, brands will be able to connect with more and more consumers by advertising on streaming platforms. The question is, how does it differ from linear television? And perhaps more importantly, what are the advantages and disadvantages of these channels?

Below is everything you need to know about linear TV vs. OTT content:

What Is Linear TV?

Linear TV refers to the traditional means of watching broadband or cable television. Viewers tune into scheduled programming at specific times. Some major linear TV networks you may be familiar with include ABC, NBC, CBS, and Fox.

How Does Linear TV Advertising Work?

Linear TV advertising involves placing commercials during specific time slots within a program’s schedule. You will buy slots based on the show’s expected viewership. The goal of linear TV advertising is to reach a broad audience, making it ideal for raising brand awareness.

Advantages of Linear TV Advertising

Linear TV provides you with access to broad general audiences. You can potentially reach tens of thousands with a single ad.

Marketing on linear TV also sets you up on an established and trusted foundation. Because of the high cost of advertising on linear’s limited inventory, household name brands have long monopolized the channel, which has led consumers to associate linear advertisers with trustworthiness — today, running ads on linear television tells viewers that your brand is legitimate.

Television ads are visually and audibly engaging, as well, and they can be very impactful when positioned alongside great content.

Disadvantages of Linear TV Advertising

As mentioned, one of linear TV advertising’s biggest hurdles is that its ad slots can be very expensive, especially during prime time or major events. Typically, you’ll need to purchase a slot that covers an entire designated market area (DMA), a large geographic region that includes multiple zip codes.

Given the large delivery area, linear TV ads offer less precise targeting than digital channels. Everyone tuned in to a particular program in your DMA will be exposed to your content, but many of those individuals likely don’t align with your target audience.

Additionally, even though linear television commercials were once unskippable, DVRs are now commonplace among viewers who haven’t cut the cord, meaning many will be able to jump right past your ads altogether.

What Is OTT Streaming?

OTT streaming refers to delivering video content directly over the internet. It bypasses (or goes “over the top” of) traditional cable or satellite systems. Viewers can watch content on-demand, any time and anywhere, via devices like smart TVs, tablets, and smartphones. Some of the most popular OTT services include Netflix, Hulu, Disney+, and Prime Video.

Note: OTT is commonly used to describe the content being delivered; the term “Connected TV” (CTV), meanwhile, is generally used to describe the devices and platforms used to deliver them.

How Does OTT Advertising Work?

OTT advertising involves placing ads within streaming content. These ads can be pre-roll (before the content), mid-roll (during the content), or post-roll (after the content).

Additionally, OTT advertising allows for advanced targeting options. You won’t have to purchase slots that cover an entire DMA. Instead, you can deliver content to specific neighborhoods, demographics, or audience segments to improve your reach and engagement.

Advantages of OTT Advertising

OTT, as a medium, stands out for its precise targeting capabilities. You can create custom segments based on various factors and make your ads more relevant. OTT advertising also provides excellent flexibility. You’ll enjoy more control over when, where, and how your content is presented to prospective customers.

Most importantly, OTT marketing platforms provide detailed analytics. You can carefully track ad performance and your return on investment. And if a campaign underperforms, it’ll be easy to figure out why.

Disadvantages of OTT Advertising

There are a few potential drawbacks associated with OTT marketing campaigns. For one, running too many ads or having your content appear too frequently can result in ad fatigue.

Another concern is that not all OTT / CTV platforms have the same reach. Setting up and managing campaigns across multiple streaming services can become tedious and frustrating.

The good news is that you can avoid these hurdles by using a centralized OTT / CTV campaign management solution like MNTN Performance TV. You’ll enjoy access to premium inventory and can run streaming ads alongside popular shows and movies on multiple platforms.

Summary of Key Differences

Let’s break down the key differences between OTT vs. linear TV advertising:

Targeting and Reach

Traditional linear television offers broad reach, making it great for mass-market campaigns, but it has minimal targeting capabilities.

OTT, on the other hand, provides precise targeting options, allowing you to reach your ideal audience.

Ad Format and Creativity

Linear TV commercials are typically limited to 30- or 60-second slots. You’ll also incur high production costs.

OTT marketing offers flexible ad formats, including short videos and interactive ads. You can also run banners or display ads to keep costs down.

Measurement and Analytics

You’ll have a tough time measuring the results of linear television campaigns. Most data will consist of TV viewership data, which can be misleading; just because most people were tuned in to the program your ads appeared alongside does not mean they were engaged with your content.

OTT streaming provides detailed analytics insights and real-time data on ad performance. You can track everything from reach to conversion rates, making it easier to optimize your campaigns.

MNTN Turns TV Advertising Into a Performance Channel

Pitting OTT vs. linear TV is no contest. OTT / CTV solutions provide better targeting, precise attribution, and more control over your campaign. MNTN Performance TV builds on the advantages of OTT by delivering audience-matching capabilities via MNTN Matched.

MNTN Matched uses robust AI algorithms and a large collection of data sources to create three audience levels based on their intent (Medium, High, and Maximum Reach). You can use our classification capabilities to find and connect with audiences who will take action.

Take your OTT and CTV marketing campaigns to the next level. Schedule a demo of MNTN Performance TV today.

Linear TV vs. OTT Streaming: Final Thoughts

Linear television maintains its value as a mass-marketing tool, but its limited targeting and analytics capabilities make it less suitable for performance-driven campaigns.

Switching to OTT marketing and powering your ads with a dynamic tool like MNTN Performance TV gives you unparalleled control and visibility into the impact of your campaigns. Check out our services today and unlock the full potential of over-the-top advertising.