OTT Advertising: What You Should Know

OTT Advertising
OTT Advertising

Traditional video content delivery methods like cable or satellite are getting obsolete. Thanks to internet-based streaming media, cable and satellite television are less popular. Viewers are cutting the television cord and turning to their Smart TVs, laptops, and smartphones for video content as these devices are more comfortable to use and provide more opportunities.

Consequently, the days of traditional television may end soon. An OTT platform is a better way to deliver media content to users. And it provides companies with OTT advertising which is a profitable way to promote their products and services.

Viewers use devices compatible with the internet to stream media content. They utilize laptops, Smart TVs, tablets, game consoles, and smartphones. In comparison with cable television, there is no need for cable when it comes to these gadgets.

A consumer just needs to find a video streaming service which content they prefer, an internet connection, and a compatible device.

However, traditional television commercials cannot be shown to the audience using devices. Advertisers should utilize OTT platforms to display their ads to viewers.

Companies developing OTT solutions are constantly improving the way brands and viewers interact via advertising. OTT advertising is better than cable TV advertisements.

If you want to launch your own video streaming platform, we recommend contacting Setplex. They can offer you a solution to achieve business goals.

OTT advertising and TV commercials

There is a fundamental difference between OTT advertising and TV commercials:

  • TV commercials show the same ads to everyone watching television programs. Advertisers purchase an air-time on television, and providers push their ads.
  • OTT advertising can be personalized based on the data that a viewer generates when streaming video content. The ad targeting can be more accurate. As a result, an ad is shown to a person who can be really interested in the product or service advertised.

Traditional television is limited by its infrastructure, while OTT platforms don’t have these limitations. Let’s give a closer look at other benefits of OTT advertising.

Benefits of OTT advertising

Segmentation of viewers

Viewers of traditional television watch all ads in a row. However, OTT advertisers can divide their audience into segments and show them personalized ads. OTT platforms let ad-creators show their videos to people based on their devices, viewing history, demographics, and so on.

User behavior tracking

When you run ads on television, you cannot tell whether people are watching an ad or they are not in front of the TV now. OTT solutions offer a lot of capabilities for tracking user behavior on the platform. Using these features, you can understand the performance of each ad: how many viewers skipped it, how many people clicked on it, and more.

Control of content

When you are watching television ads, you can skip them simply by switching to another channel. But OTT platforms can prevent viewers from skipping their ads. Consequently, companies can ensure that people will view the ad videos they created. Moreover, people have fewer reasons to skip advertisements if they are personalized.

Reaching more viewers

Many consumers watch their videos not only on Smart TVs but also on tablets and smartphones. It means that they can view content anywhere they want. They can sit in a cafe or wait in line and enjoy their favorite videos. As a result, there are more chances that people will watch your ad videos.


OTT advertising allows companies to use all components of the ad environment. They are not limited to devices. Today, companies can use a combination of marketing tools, including social media and others.

Different ways to advertise

OTT advertisers may select the way they will show ads to viewers. They can show ads to people during the video playback and interrupt their viewing experience. Or they may use ad banners that are not so intrusive. Remember that some consumers don’t like when an ad interrupts the video.

Final Thoughts

Platforms with an ad-based monetization model are getting more popular in comparison to subscription-based services. Viewers are tired of purchasing all the subscriptions and switching to other video streaming platforms. OTT advertising can be profitable for you.

As viewers are switching to ad-based platforms, you may find your audience among them.