What is OTT Advertising?

What is OTT Advertising?

OTT (Over-the-top) advertising refers to the video advertising content delivered to viewers via the internet over streaming platforms, bypassing traditional cable, satellite, or broadcast TV channels. It allows advertisers to reach audiences through platforms like smart TVs, mobile apps, or streaming boxes.

Compared with traditional TV, OTT advertising has several advantages: it can reach fragmented audiences, support precise targeting (such as by region or interest), provide measurable ad performance, and enable dynamic creative delivery. OTT ads often appear in formats such as pre-roll (before content), mid-roll (during content), or post-roll (after content), similar to how YouTube delivers ads.

Additionally, advertisers can integrate OTT advertising into cross-channel media strategies, using it in tandem with online video, social media, and even linear TV to amplify campaign effectiveness.

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OTT vs. CTV vs. VOD

When discussing OTT advertising, you may often encounter the terms CTV and VOD. Here’s a brief explanation of their differences:

Over-the-top (OTT)

OTT refers to streaming services that provide video content directly to viewers over the internet. Platforms include Netflix, Disney+, Apple TV+, and more. Viewers can access these services through various devices such as mobile phones, tablets, smart TVs, and streaming boxes (e.g., MyVideo, KKTV). These platforms are the primary channels for delivering OTT ads.

Connected TV (CTV)

CTV is a type of OTT, but it refers specifically to OTT content accessed via internet-connected television devices, such as smart TVs, Apple TV, or Chromecast. It offers a living room viewing experience with the benefits of digital targeting and tracking.

Video on Demand (VOD)

VOD allows viewers to watch specific video content at any time, rather than according to a broadcast schedule. VOD can include subscription-based services (SVOD), like Netflix or Apple TV+, and ad-supported services (AVOD), providing flexibility in viewing with or without ads.

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Types of OTT Advertising

Depending on how viewers access content and how the service generates revenue, OTT advertising can be categorized into the following formats:

• Subscription Video on Demand (SVOD)
  SVOD platforms such as Netflix and Disney+ offer ad-free content via paid subscriptions. Ads are generally absent unless a lower-cost, ad-supported plan is chosen.

• Ad-supported Video on Demand (AVOD)
  AVOD platforms rely on advertising revenue to provide free content. Examples include YouTube, myVideo, and miVideo, where users watch ads in exchange for free access to content.

• Transactional Video on Demand (TVOD)
  TVOD allows users to rent or purchase specific content. These platforms may still offer pre-roll or mid-roll ads to monetize content access.

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Best Practices for OTT Advertising

To make the most of your OTT ad investments, here are three best practices to enhance advertising effectiveness:

1. Choose the Right OTT Ad Format
   Consider your campaign objective, audience engagement habits, and the content type. Pre-roll ads are good for brand awareness, while mid-roll ads tend to have higher view completion rates. Tailor your creative and placement strategy accordingly.

2. Leverage Precise Audience Targeting
   One of OTT’s biggest strengths is the ability to segment audiences using data such as demographics, location, and interests. Using DMP or first-party data sources, advertisers can precisely reach the right segments. CTV and smart TV devices can also provide geo-targeted capabilities.

3. Design Interactive Creative
   Enhance your OTT ad impact by using interactive ad formats such as overlays or clickable CTAs. Platforms like miVideo offer multiple rich media formats. These elements improve engagement, click-through rates, and conversions.

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Evaluate Streaming Media Ad Performance

It’s essential to track ad performance using unified measurement tools and KPIs. Unlike traditional TV, OTT ad effectiveness can be monitored in real-time—tracking impressions, view-through rates, clicks, conversions, and even cross-device user journeys. Brands can optimize campaigns based on these data insights to maximize ROI.

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