As technology evolves, so does the way people consume television. The battle between traditional Linear TV and Connected TV (CTV) is transforming advertising strategies. While linear TV still holds appeal, particularly among older viewers, CTV is redefining the landscape with personalized, on-demand experiences.

This technological shift is pushing brands to revise their advertising models. Reaching to the audience is one thing. But what matters in today’s competitive environment is leveraging the appropriate platform to maximise engagement, profits, and sustainable long-term growth.

In this article, we explore the differences, revenue models, advertising strategies, and the future of both platforms—helping you choose the right one for your business.

What is Linear TV?

Linear TV refers to the traditional television experience where viewers watch content scheduled by broadcasters. Programs air at set times, and audiences must tune in live or record for later viewing.

Pros:

• Broad reach

• Established infrastructure

• Familiar to older demographics

Cons:

• Limited targeting

• Fixed schedules

• Declining younger audiences

What is CTV (Connected TV)?

Connected TV (CTV) refers to devices like Smart TVs, Roku, Apple TV, or gaming consoles that allow users to stream digital content via the internet. CTV includes apps like Netflix, Hulu, YouTube, and more.

Pros:

• On-demand flexibility

• Precise audience targeting

• Interactive and trackable ads

Cons:

• Fragmented platforms

• Ad fatigue potential

Linear TV vs CTV: Key Differences

Here are a few pointers that show the fundamental differences between Linear TV vs CTV.

What are the Core Revenue Streams for Linear TV and CTV?

The core revenue stream for Linear TV and CTV is mainly advertising and subscription (carriage) fees.

Linear TV

1. Advertising

Brands book prime-time slots of popular programs to air their commercials. It helps them reach out to the maximum consumers. Prime-time slots demand higher rates.

Advertising rates depend on audience size, demographics and the program’s TRP. In some cases, brands offer sponsorships to TV networks by incorporating their advertisements or related messages into specific shows.

2. Subscription (Carriage) Fees

Cable and satellite providers are another source of revenue for Linear TV. They pay carriage fees to the Linear TV network to distribute their channels.

The fees depend on the channel’s popularity. High-demand networks demand premium rates. Cable and satellite providers recover fees paid to the TV networks and profit by charging viewers through TV subscriptions. 

Viewers are offered monthly or yearly plans. Despite buying a paid subscription plan, they cannot avoid the commercials aired by various brands.

CTV

CTV earns revenue through streaming services like Netflix or Disney. Mainly, viewers contribute to the revenue by buying an ad-free subscription plan. However, some streaming services offer free viewing with advertisements within streamed content.

1. Programmatic Advertising: Automated ads are placed within streaming content to enhance reach and engagement.

2. Interactive Advertising: It allows viewers to engage directly with ads and improve conversion rates. Example YouTube.

3. Subscription: Platforms charge viewers a monthly fee to access ad-free content. The rates for different streaming services vary according to their popularity and content. These streaming partners offer flexible plans, such as “limited to a single device or mobile only,” to make the service affordable for the audience.

A few subscription models are:

• SVOD (Subscription Video on Demand): Viewers pay a monthly fee to access ad-free programs.

• AVOD (Ad-Supported Video on Demand): No need to buy a monthly plan. However, streaming content includes ads.

More on This Topic:  AVOD Vs SVOD: Everything You Should Know About 

Which delivers better Audience Reach and Engagement: Linear TV vs CTV

As per reports, Linear TV still maintains a broad reach, however, the usage is declining. Around 75% of households are switching to CTV, driven by smart TVs and streaming platforms.

How Advertising Strategies Differ in Linear TV vs CTV

Let’s look at different advertising strategies used in Linear TV vs CTV. These strategies are based on how audiences consume content.

Linear TV

1. Scheduled Commercial Breaks: A time is scheduled for breaks/intervals of the popular show. Advertisers place their commercials during these breaks, expecting to reach a broad audience. Ads generally appear before, during or after a show.

2. Demographic-Based Targeting: A time slot is chosen by advertisers based on general audience types. For example, airing family-friendly ads during prime-time programs. 

3. Broad Reach, but Less Precision: Linear TV reaches a massive audience. However, it lacks specific targeting. Advertisers consider factors like general ratings and viewer trends, and there is no means of identifying individual preferences of viewers.

CTV

1. Audience Segmentation: CTV provides data, such as viewing habits, interests, and demographics, which helps advertisers target specific groups. 

2. Interactive Ad Formats: Ads appearing in CTV are clickable, shoppable, and personalised, which connects well with the target consumer. 

What technological advancements are shaping the future of Linear TV and CTV?

Technology is making Linear TV and CTV smarter and offering better options for viewers and advertisers.

Linear TV Advancements

1. Addressable TV: Allows advertisers to display ads to different households, making them more relevant.

2. Smarter Ad Breaks: The inception of AI allows for ad placement at the time that prevents viewers from getting annoyed.

CTV Advancements

1. AI-Driven Targeting: Advertisers promote ads that match viewers’ interests.

2. Smooth Streaming: Technological advancement prevents buffering, enabling a seamless experience.

3. Real-time Analytics: CTV allows quick performance tracking, which helps advertisers modify their campaigns for optimum results.

4. Improved ROI Tracking: CTV ads are data-driven, helping advertisers measure effectiveness with precision and control spending.

Future Trends and Opportunities in Linear TV vs CTV

The future of TV viewership and advertising is rapidly changing. CTV's popularity is growing, and more advertisers are shifting to it. By 2029, CTV is expected to overtake Linear TV in total ad spend and viewership revenue.

Linear TVs are experimenting with hybrid models to optimise advertisers’ campaigns. CTVs also aim for precise targeting to help advertisers make their campaigns effective.

However, Linear TV and CTV face audience fragmentation and cord-cutting challenges. Therefore, advertisers should plan their campaigns strategically to leverage Linear TV’s mass exposure and CTV’s data-driven insights.

Integrating both formats can help advertisers gain maximum engagement and ROI.

Conclusion

Both platforms offer value depending on your audience and campaign goals. However, CTV offers the flexibility, reach, and insights that modern brands need to thrive in a digital-first world.

Want to make the switch to modern advertising? Enveu's OTT platform provides scalable, interactive streaming solutions tailored for CTV experiences. Drive performance, improve viewer engagement, and future-proof your advertising efforts.

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