What is OTT Advertising? Everything You need to Know about it.

Quick Answer

OTT or ‘over-the-top’ is the method of delivering video content using various gadgets (computers, smartphones, tablets/ ipads, etc.). These are the devices through which video streaming happens. 

Accordingly, OTT Advertising happens to be the promotional or marketing content that is being displayed to the audiences streaming videos on their respective OTT devices.

The immense popularity of OTT viewership in recent times has reshaped the advertising experience. With the advent of numerous streaming platforms, companies have been able to bypass traditional TV.

To uplift their market and sales, companies are exploiting online platforms by running advertisements as a recent shift has been seen in the viewership from traditional mediums to modern mediums.

OTT marketing is booming, here’s why?

As a matter of fact, the recent years have seen a tremendous success of the internet. Nearly every household has access to the internet and ‘over-the-top’ devices have become a major source of entertainment among various classes.

These online streaming platforms have come up with more engaging content attracting and hooking even more eyes. People are becoming used to binging Netflix, Amazon Prime, Disney+, and whatnot. So, the companies worldwide grabbed the opportunity to personalize advertising to reach more viewers and boost their Return of Investment.  

Be it the leading platforms that provide free entertainment or the others that invite paid subscriptions providing exclusive content to their customers, this market is huge. The recent years of the pandemic have shown that the era of traditional TV viewing is on the edge of extinction. And this has garnered companies to heavily invest in OTT advertising which will in turn generate profits and bring customers encouraging more sales.

Also, OTT advertising is not just about building your brand. It helps in reaching a more targeted/niche audience engaging and getting them to buy their goods.

The Advantages of OTT Advertising?

There are many factors that have influenced the shift of viewership from traditional mediums to modern mediums. The companies/brands are inclined towards investing in marketing on various online platforms more as compared to the other sources. These advantages of OTT Advertising can be reasoned with the following factors:

  • To start with, in the recent times of the pandemic, where everyone around the world was stuck in their homes, E-commerce has seen a sprawling growth among all the other sectors. This has led numerous companies to try their hand in OTT advertising in addition with algorithm-based ads to elevate their sales.
  • The other major reason lies in the fact that unlike traditional mediums such as TV or radio, ‘over-the-top’ entertainment provides the audiences the ease of viewing their favorite content anytime, anywhere, and on any device ranging from phones, tablets to laptops, ipads, etc. Hence, companies find it reliable to make their products accessible to everyone anywhere and anytime by taking up advertising themselves on these online streaming platforms.
  • To add further, unlike TV advertising, OTT has got the flexibility of turning a viewer into a potential customer. 
  • Moreover,  it enables “Closing the cross-channel loop”. This means that OTT helps retargeting viewers through web and mobile traffic and not just TV.
  • Furthermore, it is quite easier to get into your budget as compared to the traditional TV advertising experience. This means that if at any point you feel like stopping your ad, you’re no longer charged. The overall charges depend upon clicks and views.
  • Also, online streaming is the need of today’s Gen Z. This means your ads should be appealing to the younger generation which in turn, gains you more targeted audiences leading to increased engagement.
  • To end with, last but not the least, OTT advertisements are short and crisp, more palatable, engaging, and generate less waste with every ad experience as compared to the old methods of marketing.

What will the future of OTT ads be like?

This Report from mordorintelligence.com shows the growth of OTT over the past 6 years
  • OTT advertising trends are constantly changing and evolving. Almost a decade ago, TV channels were dominating the advertising world and now, they have been facing tough competition from online streaming service providers that bring various new and interactive features. 
  • The new trend is low-cost video distribution minimizing ad spent waste. Also, once you get into the world of OTT advertising, you get an unprecedented opportunity to target new audiences in varying ways.
  • As online streaming viewership will continue to rise in the near future, so will the opportunities for companies that thrive to enhance their market and sales. This will lead the brands to adopt new methods of advertising as OTT advertising is estimated to grow by more than $10 Billion in 2022.
  • The OTT advertisements are projected to reach a more precisely targeted audience or desirable demographics driven by personal preferences, data analysis of one-to-one personal ad experience that is impossible with normal TV or radio.

Challenges with OTT Advertising?

As we all know, Nothing interesting is ever completely one-sided. And discussing the advantages of OTT advertising earlier, brings me to throw light on the challenges it offers. There are a number of problems it comes with that need to be resolved.

  • First and foremost, since OTT ads are not measured by the number of clicks, it is difficult to measure the audience engagement and user reaction on the ad. It, thus, counts as a Brand’s inability to accurately measure their campaign’s success.
  • Secondly, if we talk about a company’s OTT advertising, it is less interactive than that of web or mobile advertisements.
  • Also, it would be better to say that it has a long way to go in assessing sales conversions since it is still not possible to get an idea of how many viewers have turned into customers. 
  • Moreover, investing in OTT advertising is one thing and understanding the nuances of how OTT campaigns fit into larger media is another which requires expert strategy. 
  • Last but not the least, there are no rules and regulations that govern the OTT inventory or the ads that go on the online streaming platforms. It is,thus, still so wild and it needs to be checked and regulated what the user is being fed on. It will ultimately lead to Ad fraud prevention in general.

All these disadvantages are obstruction in the path of OTT advertising companies. They will continue to pose a significant problem for the brands and marketers, Until and unless these are properly addressed.


To put it in a nutshell, it is advised to choose the platform for your marketing according to the nature of your business. This will not only help you garner more users but will also generate crucial revenue. Moreover, you can also utilize the vast user base of the leading platforms such as Netflix, Youtube, Amazon, and several others.

OTT is the present and future of professional Broadcasting. It is a dynamic concept and is still left with a lot of potential to be explored. One can benefit from it in various ways and also earn tons of profit. As it is likely to dominate the marketing world at least for this decade.

As different platforms function on different models, one can derive stupendous benefits by investing a small chunk of their time in research and analysis of these platforms.

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