Understanding the Landscape: What Exactly is Streaming TV?

You’ve seen the logos and heard the terms: OTT, CTV, Streaming TV, Programmatic. It sounds like a bowl of alphabet soup, but for your dealership's bottom line, it's the most important language to learn in modern advertising. So, what do these terms actually mean?

As James Klaus of Loon Advertising points out, many dealers are told they need to get into streaming, but "no one educated and really provided a transparent experience." Let's break down the landscape simply.

The Core Concepts Defined

Think of Streaming TV as the big umbrella. It covers any video or audio content you watch that is delivered over an internet connection instead of a traditional cable or satellite dish. Under this umbrella, you have a few key components that work together in what is called programmatic media.

• OTT (Over-The-Top): This is the industry term for streaming. It got its name because the service literally runs "over the top" of a traditional cable box infrastructure, using the internet to deliver content directly to you. For all intents and purposes, OTT and Streaming TV mean the same thing.
• CTV (Connected TV): This isn't the content, but the device. A CTV is any television set that is connected to the internet. This includes Smart TVs that come with built-in apps and operating systems, as well as external streaming devices like a Roku, Apple TV, Amazon Fire Stick, or even a gaming console like a PlayStation.
• Programmatic Media: This is the powerful engine running in the background. It’s the automated technology that allows us to buy and sell digital advertising in real-time. Instead of calling a TV station rep, programmatic platforms let us target specific audiences with incredible precision, making sure our ad for a new minivan only shows up in households that are actually in the market for one.

Where Your Customers Are Watching

Your customers' viewing habits are more diverse than ever. Streaming TV reaches them on the big screen in the living room via a CTV, but it also finds them on their laptops, tablets, and smartphones. This ecosystem includes everything from premium subscription services like Hulu and Peacock, to Free Ad-Supported TV (FAST) channels like Pluto TV and Tubi, to online video platforms like YouTube. It even includes Streaming Audio from services like Spotify and Pandora.

The key takeaway is this: the average person subscribes to four or five different streaming platforms. This used to be a challenge for advertisers, but with programmatic technology, this fragmentation is now an incredible opportunity. We no longer have to guess where our customers are. We can use data to find their households and deliver our message no matter which screen they’re looking at. Understanding this landscape is the first step to leveraging its power.

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