Understanding the Difference: Digital Video vs. Television

Understanding the distinctions between digital video and traditional television is crucial in the rapidly evolving media consumption. Let's delve into each platform's nuances to better comprehend how content is consumed and how ads are delivered. This blog offers digital video and television content examples, highlighting their function and ad placement. It will then help you make wise choices to improve your marketing strategy, maximize the effectiveness of your advertising campaigns, and improve your return on investment in digital marketing and advertising.

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Digital Video

• CTV: Connected Television

Connected Television refers to TV-like content delivered via the Internet, typically through Smart TVs or over-the-top (OTT) devices. This category includes both subscription and non-subscription streaming services. Some inventory may be distributed in the mobile or desktop environments and includes the following:

• AVOD, advertising-based video on-demand, is a monetization technique that uses video-on-demand services. AVOD viewers can access all of the free video material on the platform. This approach relies on advertising with a large audience instead of charging users to consume content. Users find it appealing to watch their favorite videos for free. By the end of 2023, there will be about 140 million AVOD watchers in the US; by 2026, that number is expected to reach over 170 million.

• Free ad-supported streaming TV services, aka FAST. Free content access and advertising-based revenue are the key points of similarity between AVOD and FAST. Similar to cable TV channels, FAST channels are linear with commercial interruptions. The user cannot choose what is broadcasted on the channel, unlike with AVOD. (e.g., Pluto TV, Tubi, Xumo)

• Ad-supported paid subscription video services (e.g., Hulu, Paramount+)

• vMVPDs or virtual multichannel video programming distributors. It is a service that enables customers to view their preferred TV channels online without needing cable subscriptions. In addition, devices like laptops, tablets, and smartphones can access vMVPD service. Viewers can also stream on-demand video material, such as movies, with modern vMVPDs. Similar to cable TV services, viewers of vMVPDs pay a recurring subscription cost, typically every month. (e.g., Hulu Live TV, YouTube TV, Sling)

• Social Video

Short-form videos shared on social media platforms such as TikTok, Instagram, Facebook, Snapchat, Twitter, and YouTube fall under the social video category.

• Online Video

Web or app-based publishers often produce short-form videos for online consumption, catering to audiences seeking quick and engaging content.

Television

• National Broadcast/Cable TV

Traditional linear TV programming is distributed nationally and tends to have uniform ad placements across households viewing the same shows. This includes data-driven linear TV bought for national distribution.

• Local Broadcast/Cable TV

Like national TV, local broadcast or cable TV targets specific metro-level audiences, ensuring that households watching the same shows are exposed to the same advertisements.

• Audience-Based Linear TV

Cable and satellite television are included in linear television, often known as traditional broadcast television. Unlike on-demand material, which each viewer chooses to watch according to their own schedule and tastes, linear content adheres to a fixed programming schedule. So, to answer the question “What is linear TV?” consider it the traditional, multi-decade TV viewing experience. Linear TV advertising is pre-purchased, meaning advertisers must purchase ad space based on the show’s rating and not the audience.

• Audience Addressable TV: Since linear TV advertising is the same for everyone, addressable TV advertising differs from traditional TV advertising. Advertisers can serve specific ads to individual households during linear TV programming based on data such as location, behavior, and demographics, providing a more targeted advertising approach.

• Audience-indexed linear TV: Buyers can identify programs, networks, and time slots that align with their target audience demographics, optimizing ad placement to reach the desired viewership.

In conclusion, digital video and traditional television offer distinct strategies for content creators and advertisers to engage with audiences. While digital video provides flexibility and reach across various platforms, television maintains its relevance through targeted audience segmentation and mass exposure. Understanding the unique features of each medium is essential for developing effective content strategies and advertising campaigns in modern media consumption.