ATV vs. CTV – significance, differences and forecasts

ATV vs. CTV – What is the difference?
In order to set up media planning efficiently, it is important to clearly differentiate between addressable TV and connected TV. When planning advertising, it is crucial to bear in mind that they differ in terms of the advertising environment and the possible formats in which they can be played.

On ATV, advertising can only be played in the environment of the linear television programme. There are two possible formats: Playout after the switching process or playout in the linear advertising block.

CTV advertising, on the other hand, takes place on video-on-demand platforms or in live streams. In most cases, adverts are played directly “in stream” – either as a pre-, mid- or post-roll ad. Special formats are also possible, for example as an overlay or with a call-to-action as well as other dynamic elements such as the addition of a geolocation.

A major advantage of ATV is that it combines the reach of linear TV with the advertising targeting possibilities of the Internet. The existing target group of the classic TV programme can be addressed more specifically via the new channels of ATV. While linear TV is used for national advertising, ATV can now be used for regional and target group-orientated advertising. However, it is not yet possible to determine the exact placement of the advert in the advertising block, as is the case with media planning in linear TV.

While ATV only reaches users of the linear TV programme, CTV taps into another target group: namely those who can no longer be reached via linear television. Adverts can also be played to specific target groups on CTV and can be placed according to socio-demographic data, among other things. Scattering losses can be minimised here through targeting.

Current developments and forecast
Both ATV and CTV offer exciting opportunities when it comes to advertising playout. However, there are also challenges that need to be considered. For example, there is still room for improvement in the measurability of addressable TV. While the usual key figures such as impressions on a weekly, daily and hourly basis, VTR or channel mix and programme distribution are comprehensible, there is still a lack of standardised reporting provided by the marketers.

The targeting options in the CTV environment lag somewhat behind those in general streaming. The example of YouTube illustrates this very well: if users are not logged in on all devices, in this case on the big screen, advertisers cannot access all available targeting options.

However, when it comes to reaching younger target groups, CTV offers a decisive advantage: according to the Kantar Digitalisation Report Video Trends from 2023, 37% of 20 to 29-year-olds rarely or never watch linear TV. As the reach of ATV is limited to the reach of linear television, it is worthwhile for advertisers to consider integrating CTV into their media planning when addressing younger target groups.

In general, online video usage has increased: Figures from the Nielsen Spring Study 2023 on media use in Germany show that 70 per cent of respondents stream at least once a week. Among younger people, i.e. 18 to 34-year-olds, the figure is as high as 91 per cent. Video platforms and video streaming services are used equally.

It can be observed that streaming providers that have relied on a pure SVOD model in the past, such as Netflix, are now specifically implementing hybrid models. The reason for this is stagnating or even declining user numbers due to the ever-increasing choice of alternatives on the market. Between Q4 2021 and Q2 2022, Netflix recorded a decline from just under 221 million users to just under 220 million. The streaming provider successfully countered this trend by introducing various subscription options and banning account sharing: Between Q2 2022 and Q4 2023, the figures rose continuously to over 260 million users.

This opening up of pure SVOD models (without the option of advertising placement) to hybrid models creates new advertising placements that advertisers should consider in their media mix in future. CTV is also convincing in terms of advertising acceptance and perception: the “Goldbach Advanced TV” study 2024 shows that both the acceptance of advertising and the perception of advertising are increasing. At the same time, streaming providers are constantly offering new formats for advertisers. Most recently, Netflix introduced the “binge ad format” to adapt advertising subscriptions to the binge-watching of series and thus make advertising more attractive.

Conclusion
In future, the aim will be to put together a hybrid video mix that ensures a sustainable dose of contact in the various age segments via different video offerings. Depending on the target group, vertical video will also play an increasingly important role in video consumption and the respective media strategy.

A moving image strategy must therefore be designed to work across all devices in future. It should also understand attention as the new media currency. The right planning of environments, advertising formats and contexts is crucial for the visibility of campaigns on all devices. In order to understand and optimise the success of such strategies in a continuously evolving market, the need for research and the demand for valid reporting will continue to increase.