In today’s digital landscape, the term OTT, which stands for “over-the-top,” has become increasingly common. OTT services refer to technology that delivers streamed content via the internet, bypassing traditional distribution methods like cable or satellite. The rise of OTT has not only transformed how we consume media but also opened new avenues for marketing, especially in the mobile space.
What is OTT Streaming?
OTT streaming refers to any video or audio content that is played over the internet. Unlike traditional TV services that required a cable or satellite connection, OTT allows users to stream content on any internet-connected device—smartphones, tablets, smart TVs, and more.
There are two main types of OTT streaming:
- Pay-to-Access – Where users subscribe or pay a fee to access content.
- Free-to-Access – Where users can stream content for free, but with ads displayed throughout.
Many OTT platforms now operate on a subscription-based model, though different monetization methods exist.
OTT Monetization Models
OTT platforms use various methods to generate revenue:
- Ad-Supported: Viewers watch content for free, with advertisements shown during playback.
- Subscription: Users pay a recurring fee to access the content library.
- Transactional: Users pay for individual content, such as a movie or specific episode.
- Premium: This allows early or exclusive access to content for an additional fee.
- Hybrid: A combination of the above models.
For marketers, OTT advertising can be very lucrative. According to data from leading CTV marketplaces, ad networks usually charge around $18-$21 per thousand impressions (CPM).
OTT vs Live Streaming
While OTT refers to on-demand content delivered via the internet, live streaming refers to content being broadcast in real-time. Platforms like YouTube, Facebook, and Twitch are known for offering live streaming services, whereas OTT services like Netflix and Hulu focus more on on-demand content.
Major OTT Platforms
In the world of video streaming, platforms such as Netflix, Amazon Prime, HBO Max, Disney+, Hulu, and YouTube dominate the OTT space. Meanwhile, platforms like Spotify serve as OTT platforms for music and podcasts.
What is an OTT Aggregator?
As the number of streaming services grows, keeping track of content across multiple platforms can be overwhelming. OTT aggregators simplify this by consolidating content from various services into one interface. Some popular aggregators include Viaccess-Orca, Comviva, and Tata Sky Binge. These platforms allow users to search, browse, and watch content from different OTT providers, making the streaming experience more convenient.
Understanding OTT Attribution
OTT attribution refers to the process of measuring user interactions and conversions within OTT media services. It helps marketers understand how their ads are performing on these platforms. Through OTT attribution, marketers can:
- Monitor Engagement – Track how viewers interact with ads and content.
- Measure Conversions – Determine which ads are leading to actions, like purchases or app downloads.
- Optimize Campaigns – Refine ad strategies based on performance data to reach the right audience.
Why is OTT Important?
OTT advertising offers a fantastic opportunity for marketers to reach specific audiences in a way that traditional media struggles to do. With more users shifting to online-only media consumption, advertising via CTV (Connected TV) OTT is becoming essential. Marketers can use data-driven targeting to serve ads tailored to specific audiences, maximizing engagement and campaign effectiveness.
One unique feature of OTT advertising is ad podding, where multiple ads are delivered consecutively within a single break, enhancing the viewing experience while boosting revenue.
The Future of OTT Advertising
The world of OTT is continually evolving, and advertisers need to stay ahead of the curve. Tools like Adjust’s CTV AdVision offer comprehensive data on OTT campaigns, helping marketers track impressions, click-through rates, and engagement levels. These tools ensure that OTT advertising can deliver measurable outcomes, allowing marketers to understand the true impact of their campaigns.
In conclusion, OTT is reshaping the way we consume media and approach digital marketing. By providing a seamless user experience and offering targeted advertising, OTT platforms have created a new frontier for marketers to explore and capitalize on.
