Connected TV

Connected TV Terminology Cheat Sheet

Written by Tim Edmundson

Feb 5, 2018 5 Min Read

There’s no denying Connected TV advertising is growing more popular — and it’s not surprising. Connected TV ads are an effective way of reaching your target audience; they’re highly targeted, unskippable, trackable, brand-safe ads that are guaranteed to make an impact. They provide a broadcast-quality ad experience, without the drawbacks of the ‘throw it against the wall and hope it sticks’ approach of traditional TV advertising.

With a pedigree like that, it’s not a huge leap to claim that Connected TV ads will be a mainstay of many brands’ marketing mix. That means you’re going to have to get up to speed with the ins and outs of CTV if you’re going to continue to be the savvy marketer that you are (and that includes dispelling the common misconceptions).

Let’s start with the basics — the terminology. After all, if you’re going to be advertising on Connected TV, you better know what people are talking about when they start dropping three letter combos like OTT, VOD, and GRP.

 

Also Known As…

We start with some terms you may have heard when people discuss Connected TV as a whole. Because it’s still relatively new, there are a couple competing labels that have cropped up. Rest assured, they mean the exact same thing.

> Over The Top (OTT) | Over-the-top (OTT) content goes “over” your cable box to give you access to TV content. In other words, it delivers content using an internet connection as opposed to a cable or broadcast provider. OTT and CTV are the same thing.

> IPTV | This variation comes from the idea that content is being delivered through IP packets, hence the name “IPTV.”

 

Connected TV Devices

Connected TV isn’t just for smart TVs — there are a number of ways to stream CTV content.

> Tablets, Phones, Desktops | With the proliferation of Connected TV apps like Hulu and Twitch, these gadgets have been transformed to mini-television sets. You don’t need a TV to actually watch TV anymore.

> OTT/CTV Devices | Any device you connect to your TV allowing for a continuous stream of content– meaning that as long as your internet connection is not disrupted, you don’t need to wait for an entire piece of content to download before hitting play. Popular examples are Roku, Chromecast, Amazon Fire Stick, Apple TV, and the major gaming consoles.

> Smart TVs |  If you’re buying a big screen these days, you’re most likely buying a Smart TV. This is a television with a built-in connection to the internet, no sticks or dongles required.

 

Content, Inventory, and Formats

There’s quite a few ways content and inventory are discussed. Here’s a number of the most common terms.

> Full-Episode Player (FEP) |  “Full-episode player” (FEP) refers to professionally produced, TV-like content that can appear on any device type, across both apps and web browsers. This means that the content is television length, typically 30-60 minutes, with commercial breaks in between. FEP content is inclusive of things like the news, stand-up comedy, cooking shows, etc.

> Live Streaming |  “Live streaming” means that the television content you’re watching is being streamed in real time over the internet. This live content is usually delivered by a paid streaming service, or directly by the network.

> Video On Demand (VOD) | Viewers don’t plan their schedules around TV — they fit TV into their own busy schedules. Video on demand (VOD) is becoming increasingly popular, because it allows users to watch the content they like at the times they want to watch it. Missing an episode isn’t a problem; VOD content is available to stream or download after it airs live.

> Living Room Quality CTV | This is live or on-demand, ad-supported programming through an internet connection (not via a paid cable or satellite provider), from blue chip broadcast and content companies. This content is primarily viewed on a large screen/HD TV in the living room but can also be viewed via these companies’ apps on a mobile phone, tablet, or OTT device such as an Apple TV. This is brand safe, quality programming served via an IP address and in a format that enables a more personalized ad experience.

> Direct to Consumer (DTC) | This refers to delivering content without using a middleman. For example, Netflix serves their content direct to consumers without using a network.

> Content Delivery Network (CDN) | Proxy servers in data centers that deliver content to audiences (this one is kind of a no-brainer).

 

Measurement Metrics

With a new channel comes new metrics. And while these should be familiar to marketers who have done television in the past, some of them may be new to digital marketers.

> Reach | Reach is the number of unique people that will be exposed to your CTV ad. It’s often shown as a percentage of a specific audience; for example, 75 percent of 18-24 year olds. It indicates the percentage of the targeted population that has seen at least one TV spot.

> Frequency | Just because you delivered one million impressions doesn’t mean that one million unique people viewed your ad. Frequency is the average number of times you’re delivering an ad to a given person. Knowing your frequency means you can prevent the same ad from being served to the same person over and over again. So, if you deliver 3,000 ads to 1,000 unique people (your reach), your frequency is three.

> GRP (Gross Rating Point) | GRPs have been around before the internet even existed. It used to determine how many people within an advertiser’s target audience saw an ad. For example, let’s say you want to target males between the ages of 18 and 34. You know that 30 percent of viewers in this demographic watch a certain sports game on Sunday night, so you purchase four commercial spots while the game airs. Since you are reaching 30 percent of your target audience, and are serving them roughly four ads each, this would get you to a GRP of 120.

> CPP (Cost Per Point) | CPP measures how well, for the price, your ads reach your desired audience. Once you have your GRP, your CPP is simply your total media cost divided by your GRP. It’s what you’re paying per gross rating point.

 

A Similar Offering

We round out our list of terms with a type of advertising that is often confused for Connected TV advertising — Programmatic TV. And while it’s close, it’s not the same thing.

> Programmatic TV | This is a form of traditional television advertising with a data-driven slant. Certain TV ad slots are made available for programmatic purchase, which are carried out by DSPs. Because DSPs have audience data, they allow advertisers to better target viewers — thus resulting in automatic and efficient TV ad buying. An important distinction is these ads are NOT found on Connected TV streaming services, but rather standard traditional broadcasts.

The easiest way to remember the difference? Programmatic is used in traditional or linear TV, and Connected TV is used for streaming.

 

The More You Know

Now that you’re well versed in Connected TV terms and acronyms, why stop there? Sign up to our Connected TV Report, a weekly digest of CTV news, stats, and insights.

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