Everything You Need to Know About OTT Ads

Everything You Need to Know About OTT Ads


Nowadays, every business owner is looking to make their business more efficient and cost-effective while growing their customer base simultaneously.

OTT ads are one of the newer channels that have become available to businesses that allow them to do this. However, many businesses need to become more familiar with OTT ads or how they work, which can cause them to miss out on the benefits of using this new medium.

This guide will explain everything you need to know about OTT ads to make an informed decision about whether or not it’s the right choice for you.

What are OTT Ads?

OTT is over-the-top and refers to any content delivered via the Internet rather than through traditional linear channels like TV. The other common term for this sort of delivery mechanism is streaming.

One example of an OTT ad is a pre-roll ad that plays before you watch a video on YouTube. Pre-roll ads are also among the most popular forms of advertising on YouTube.

It’s estimated that YouTube has more than 14.3 billion monthly visits, with more than 8 billion hours of video watched daily. All those numbers are significant and make sense why so many businesses would want to advertise on this platform.

A prime example of OTT advertising would be Amazon’s Freevee, which relies heavily on ads because it doesn’t offer any subscription service.

The Benefits of OTT Advertising

OTT advertising is a great way for business owners to reach their target audience and engage with them in new ways. With the rise of over-the-top services, more and more people are turning away from traditional cable providers and traditional media.

That means an increasing number of people are using streaming services like Netflix, Hulu, and HBO Now. Below are some benefits associated with this marketing strategy:

Reach Mass Audiences

Ad-supported streaming services allow businesses to place ads that all viewers will see. Because these viewers are likely not to be paying for the service themselves, this is a good way for business owners to advertise and make money without worrying about whether someone has paid for something before seeing it.

Utilize Better Data Analytics

Business owners can use better data analytics because many people utilize over-the-top services. For example, they can track which ads users click on, how long they watch the ad, and much more.

As mentioned before, OTT services reach such a large audience that you won’t have to worry about missing specific demographics. In other words, you can spend your marketing dollars wisely because the targeting options are endless.

This allows marketers to run split tests more effectively, too—trying out different styles of ads or choosing different times at which those ads are placed—because the numbers show very quickly what works best when targeting a particular group.

Gain Higher Audience Attention

The most important thing about OTT advertising is that it’s attention-grabbing. When you’re streaming movies or TV shows online, you don’t have anything else in the background to distract you.

So if a commercial pops up, chances are that you’ll pay attention! Plus, because you’re watching real-time streaming content, advertisers can choose when to play their ads.

How to Create an Effective OTT Ad

OTT ads are a great way to give viewers an immersive, interactive experience. They’re also a low-cost way of advertising because they don’t require the time and money associated with TV or print ads. Here is a summary of what you should know:

  • You need a quality video that grabs your viewers’ attention and keeps them engaged until the end.
  • Scripts should be concise and entertaining, particularly for living room-quality connected TV ads.
  • The right length is crucial; avoid lengthy videos that people won’t watch all the way through.
  • Ensure good sound quality so people can hear the message. That means having a well-lit room with few distractions in the background.
  • Finally, ensure that subtitles are easy to read so everyone understands what you’re saying.

Measuring the Success of Your OTT Campaign

A key part of any ad campaign is measuring its success. One way you can do this with your OTT ads is by tracking the number of views for your pre-roll ads.

To measure the success of your OTT campaign, it’s important to understand what metrics are available and what they represent.


Frequency is the average number of times viewers saw your ads during 30 days. The more frequently your ads are shown to users, the higher your likelihood of increased awareness. However, frequency doesn’t guarantee success.

If your ads aren’t closely aligned with the specific needs of consumers, then they’re less likely to resonate and convert.

Cost Per Engagement (CPE)

Another critical metric is the cost per engagement (CPE). A CPE is calculated by dividing the advertising cost by the ad’s total engagements. It can be useful for determining how much money you need to spend on each viewer to achieve the desired ROI.

The goal when choosing a metric is to get one that aligns with your company’s needs. For example, do you want to know how many viewers watched your ads? Or do you want to know which videos got the most views? Knowing what information is relevant will help you choose the right KPIs for measurement.

What are the Most Common OTT Ads

The most common OTT ads are pre-roll and banner ads, which can be seen in the video player or the app dashboard. Pre-roll video ads typically play before you watch a video, while banner ads will pop up as an ad during your viewing experience.

Wrapping Up

OTT ads are a growing segment in the advertising industry and represent an exciting opportunity for marketers. First, however, advertisers and marketers need to understand how this new technology works and what it means for the future of video marketing.