Definition
Over-the-Top (OTT) refers to the delivery of video, audio, and other media content directly to users via the internet, bypassing traditional cable, satellite, or broadcast television providers. OTT content can be accessed through connected devices such as Smart TVs, smartphones, tablets, desktops, game consoles, and streaming devices (e.g., Roku, Amazon Fire Stick). Popular OTT platforms include Netflix, Hulu, Disney+, YouTube, and Spotify.
How it relates to marketing
OTT has created new opportunities for marketers to reach audiences who have moved away from traditional television. Because OTT content is consumed via internet-connected devices, it enables more advanced targeting, real-time optimization, and measurable engagement compared to linear TV. OTT sits at the intersection of digital and television advertising, allowing marketers to apply digital advertising tactics—such as audience segmentation and attribution—to premium video content.
OTT inventory includes various monetization models, including ad-supported (AVOD), subscription-based (SVOD), transactional (TVOD), and hybrid models. For marketers, OTT represents a scalable channel to reach specific demographics and behaviors with precision and accountability.
How to calculate OTT advertising metrics
OTT campaigns are measured using a combination of digital and television-style KPIs. Key metrics and formulas include:
- Impressions = Number of times an ad was served on OTT content
- Video Completion Rate (VCR) = (Completed Views ÷ Started Views) × 100
- Cost Per Completed View (CPCV) = Total Ad Spend ÷ Completed Views
- Cost Per Thousand Impressions (CPM) = (Total Ad Spend ÷ Impressions) × 1,000
- Click-Through Rate (CTR) = (Clicks ÷ Impressions) × 100 (if applicable on clickable platforms)
- Attribution Metrics = Site visits, conversions, or app downloads tied to OTT exposure through identity resolution or cross-device tracking
How to utilize OTT
OTT can support both branding and performance marketing objectives. Common marketing use cases include:
- Audience-based targeting using demographic, behavioral, interest, or geo-based segments
- Retargeting users who have visited a site or interacted with a brand’s app or content
- Sequential storytelling by serving a series of ads to guide viewers through a customer journey
- Extending reach to cord-cutters and cord-nevers who are unreachable via linear TV
- Omnichannel orchestration where OTT is synchronized with display, search, social, and email
- Event-based campaigns timed to coincide with major tentpole content or live programming
Compare to similar approaches
| Feature | OTT | CTV | Linear TV | SVOD |
|---|---|---|---|---|
| Delivery Method | Internet (all devices) | Internet-connected TVs and devices | Broadcast or cable infrastructure | Internet (subscription-based) |
| Ad Support | Varies (AVOD, hybrid, etc.) | Typically AVOD | Yes (traditional commercials) | Rare or none |
| Targeting Capabilities | High (device, behavior, geo, etc.) | High (household-level, geo, etc.) | Basic demographic/geographic | Limited or not applicable |
| Content Access | On demand or live | On demand or live | Scheduled | On demand |
| Measurement | Digital-level metrics | Digital-level metrics | GRPs, panel-based | Internal to platform only |
Best practices
- Segment campaigns by device and platform to account for performance differences between mobile, desktop, and CTV environments.
- Optimize for ad format and length (15s, 30s, non-skippable) based on content context and audience tolerance.
- Use A/B testing to compare creative effectiveness and messaging.
- Incorporate first- and third-party data for better targeting and personalization.
- Implement frequency caps and pacing controls to avoid fatigue and overspend.
- Align creative with platform environment (e.g., casual on YouTube vs. cinematic on Hulu).
Future trends
- Consolidation of OTT platforms may streamline buying but introduce walled gardens with limited data sharing.
- Growth of hybrid monetization models (e.g., subscription + ads) is expanding ad-supported reach.
- Advances in addressable advertising are enabling household-level targeting at scale.
- Increased programmatic buying of OTT inventory will improve automation, optimization, and transparency.
- Cross-device and identity resolution advancements will improve attribution and retargeting across screens.
- More immersive ad formats such as interactive, QR-enabled, and shoppable video experiences will emerge.
Related Terms
- Connected TV (CTV)
- Ad-Supported Video on Demand (AVOD)
- Subscription Video on Demand (SVOD)
- Transactional Video on Demand (TVOD)
- Programmatic Advertising
- Digital Video Advertising
- Demand-Side Platform (DSP)
- Video Completion Rate (VCR)
- Addressable Advertising
- Identity Resolution