Consumers are no longer tied to their living room TVs and cable boxes to watch their favorite shows, movies, or sports. Streaming has changed everything, giving people the freedom to watch content on demand, on their own schedule, and across multiple devices. This shift offers businesses new opportunities to reach their audiences—enter OTT digital marketing.
OTT digital marketing, or over-the-top marketing, allows brands to deliver ads through streaming platforms and connected devices, bypassing traditional cable TV advertising. As people cut the cords of their more traditional satellite and cable subscriptions and move to streaming services, OTT revenue increased 18 percent in 2024, with a projected 17 percent growth in 2025.
Change is happening. As a marketer, now is the time to jump on board and connect with consumers where they spend the most time.
Understanding OTT Marketing
OTT refers to delivering video content “over the top” of traditional cable and satellite TV systems. OTT platforms can include popular streaming services like Netflix, Hulu, and Disney+, as well as ad-supported platforms like Pluto TV, Roku Channel, and Tubi.
Unlike traditional television advertising, OTT marketing focuses on reaching viewers who stream content on:
- Smart TVs
- Streaming devices (Roku and Apple TV)
- Gaming consoles
- Laptops, tablets, and smartphones
The beauty of OTT advertising is that it meets consumers wherever they are watching, making it an essential part of a modern marketing strategy.
OTT vs. Traditional TV Advertising
Traditional TV advertising relies on broad targeting and fixed schedules. You choose a time slot, pay for airtime, and hope your audience happens to be watching at that moment.
OTT flips that model on its head. Instead, ads are:
- Delivered on demand: Ads are shown when the viewer chooses to watch content, not at a fixed broadcast time.
- Highly targeted: Marketers can reach specific demographics, interests, and even geographic areas.
- Measurable: Unlike traditional TV, where results can be hard to track, OTT provides detailed data on views, engagement, and conversions.
Own a local gym? You can run a streaming ad targeting adults ages 25 to 45 within a 10-mile radius who have shown interest in fitness content. This level of precision simply isn’t possible with traditional TV.
Benefits of OTT Digital Marketing
OTT advertising offers several advantages that make it a must-have for businesses looking to maximize their research and return on investment.
Advanced Audience Targeting
Instead of casting a wide net, OTT allows you to zero in on exactly who you want to reach. You can target based on:
- Age, gender, and household income
- Viewing habits and content preferences
- Location and zip code
- Behavioral data and purchase intent
This ensures your budget is spent on the viewers most likely to take action.
Reaching Cord-Cutters
More households than ever are ditching cable in favor of streaming-only setups. Cable, telecommunications, and satellite TV accounts declined by 6.5 million last year, and TV subscriptions dropped 12 percent nationwide.
This means over half of US households now stream content exclusively. OTT gives you direct access to this growing audience, many of whom can’t be reached through traditional TV ads anymore.
Higher Engagement
Streaming platforms naturally encourage more focused viewing. Viewers typically watch their favorite shows or movies without distractions like channel flipping. This means OTT ads often have higher completion rates and greater viewer recall compared to traditional commercials.
Measurable Performance
With OTT, you don’t have to guess if your ad is working. Platforms provide robust analytics so you can track:
- Impressions
- Video completion rates
- Click-through rates
- Conversions driven by OTT campaigns
These insights help you refine your strategy and maximize ROI over time.
Flexible Budgets
OTT campaigns can work for businesses of all sizes. Unlike expensive TV ad buys, you can start small, test different audiences, and scale up as you see results.
How OTT Ads Work
OTT ads are typically inserted into streaming content before, during, or after a show or movie. It’s similar to how commercials appear on traditional TV. The difference lies in how they’re delivered and targeted. The basic process includes:
- Audience selection: Marketers define who they want to reach using demographic and behavioral data.
- Content alignment: Ads are matched with relevant streaming content to increase relevance.
- Ad deliver: The ad plays on the viewer’s streaming device within their chosen show or movie.
- Tracking and measurement: Detailed analytics show how the ad performed, from views to actions taken.
This closed-loop system allows for continuous optimization and better outcomes.
Seeing OTT Marketing in Action
Let’s say you own a local restaurant chain and want to promote a new brunch menu. Using OTT digital marketing, you could:
- Target adults ages 25 to 55 within a 15-mile radius.
- Show ads on streaming services like Hulu or Peacock to viewers who watch cooking or food-related content.
- Run the campaign over weekends when people are planning their dining out activities.
- Measure how many viewers clicked through to your online reservation page or visited your website.
This kind of precise, measurable targeting drives better results than a generic cable TV commercial ever could.
Tips for Better OTT Campaigns
To get the most out of your OTT campaigns, keep these strategies in mind:
- Keep ads short and engaging: Most OTT ads are 15 to 30 seconds. Make every second count.
- Use strong visuals: Streaming viewers expect high-quality videos that fit the content they’re watching.
- Include a clear call-to-action: Guide viewers to take the next step, whether it’s visiting your website or making a purchase.
- Test and optimize: Use analytics to identify what’s working and refine your campaigns over time.
- Integrate with other channels: Combine OTT with social media ads, email marketing, and SEO for a comprehensive digital strategy.
Why OTT Belongs in Your Marketing Mix
Today’s consumers are streaming more than ever, and traditional TV ads simply can’t keep up with their viewing habits. OTT advertising meets your audience where they are while offering the line of data-driven targeting and measurement modern marketers need.
Whether you’re looking to expand your customer base or just trying to stay competitive, OTT digital marketing gives you the tools to deliver relevant, impactful messages that drive real results.
This is what’s working now. And the brands that embrace it will be the ones leading tomorrow.
