OTT Advertising: Guide to Over-The-Top Ads (2025)

16 Min Read

Over-the-top (OTT) advertising isn’t the future—it’s the now. More people are cutting the cord and turning to streaming, and advertisers are following suit, shifting their budgets to meet audiences where they actually spend the most screen time. By 2025, U.S. ad spend on streaming TV is projected to surpass $30 billion, solidifying OTT as a must-have in any performance-driven marketing strategy.

But, simply appearing on streaming platforms isn’t enough. To win at OTT, you need more than a flashy ad—you need a smart, data-driven game plan. Think premium inventory, laser-focused targeting, and the kind of real-time tracking that tells you what’s working while it’s still happening. This guide has everything you need to nail OTT advertising in 2025.

What is OTT Advertising?

OTT (over-the-top) advertising is the delivery of video ads through internet-based streaming platforms, sidestepping traditional cable or satellite services. OTT ads appear on connected devices—smart TVs, streaming sticks, gaming consoles—hitting viewers when they’re most engaged with their favorite online content.

Unlike the spray-and-pray approach of linear TV, OTT brings advanced targeting, real-time insights, and ROI you can actually measure. For marketers who live and breathe data, it’s a no-brainer.

OTT vs Connected TV (CTV)

Here’s the breakdown: OTT is the delivery system—the strategy powering streaming content over the internet. Connected TV? That’s the hardware—those internet-connected screens (usually a television set) where your ads land.

In other words, OTT is the playbook; CTV is the field you’re playing on.

• Learn more about the differences between OTT and CTV.

OTT vs Video on Demand (VOD)

VOD covers any content watched on-demand, whether it’s ad-supported or subscription-based, while OTT specifically refers to streaming content delivered over the internet. Every OTT ad is part of VOD, but not all VOD content includes OTT advertising.

Benefits of OTT Advertising

OTT advertising is about reaching the right audiences, at the right time, with precision, impact, and measurable results. This is where linear TV falls short.

Here are a few other reasons why OTT ads should be in every modern marketing strategy.

1. High-Quality Ad Experience

OTT ads run alongside premium, on-demand content, ensuring brands appear in a high-quality viewing environment. With non-skippable formats and full-screen placements, advertisers don’t have to compete for their audience’s attention—delivering a better ad experience that actually gets watched.

2. Brand-Safe, Premium Inventory

Streaming audiences expect top-tier content, and advertisers should too. With OTT, brands can utilize premium, brand-safe inventory across major streaming networks, ensuring their ads appear in quality programming—not in the unpredictable corners of the internet.

3. Sophisticated Audience Targeting

Forget vague demographics. OTT taps first- and third-party data to zero in on viewers by interests, habits, even what (and when) they’re likely to buy next—delivering ads that hit the mark without wasting valuable marketing dollars.

4. Measurable Performance and Attribution

Unlike linear TV, where ad performance is based on estimates, OTT provides real-time analytics and concrete attribution. Marketers can monitor KPIs like conversions, ROAS, and site visits—so they know exactly what’s working and where optimization efforts need to go.

5. Flexible Budgets and Campaign Control

OTT isn’t just for big brands with big budgets. Self-serve platforms (like MNTN Performance TV) let any brand jump in, tweak budgets, refine audience targeting, and optimize on the fly—making every dollar pull its weight.

How Does OTT Advertising Work?

The process of OTT marketing isn’t rocket science–it’s quite simple, really. Instead of buying traditional TV spots based on broad demographics, marketers use data-driven technology to serve ads to the right viewers at the right time.

Step 1. Choose Your Audience

OTT platforms use first- and third-party data to target viewers based on a wide variety of attributes including interests, behaviors, user demographics, and even purchase intent. Instead of guessing who’s watching, advertisers can accurately reach high-value customers.

Step 2. Select Premium Streaming Inventory

Ads run across top-tier streaming services, apps, and networks—ensuring brand-safe placements within high-quality content. No UGC, no low-quality environments—just premium, TV-like ad experiences.

Step 3. Deliver Ads to Connected Devices

OTT ads appear on a wide variety of smart devices and internet-connected screens (more on this later) where audiences spend the most time. With full-screen, non-skippable placements, brands get undivided attention.

Step 4. Track Real-Time Performance

Unlike old-school television advertising, OTT provides real-time data on impressions, site visits, conversions, and more. Advertisers can see their campaign performance as it happens, eliminating guesswork.

Step 5. Optimize for Better Results

With access to live performance tracking, advertisers can adjust targeting, creative, and budgets on the fly. No waiting weeks for post-campaign reports—OTT allows for instant optimizations to maximize ROI.

OTT advertising combines the best of TV’s impact with digital’s precision, giving brands a smarter way to reach today’s streaming audiences.

OTT Monetization Models

Not all streaming platforms operate the same way. OTT services follow different business models based on how they deliver content and generate revenue.

Here are the four main types:

Subscription Video on Demand (SVOD)

Platforms like Netflix and Disney+ operate on a subscription-based model. In other words, in exchange for unlimited access to content, consumers agree to pay a monthly subscription cost.

Traditionally ad-free, some SVOD services now give the option of lower-cost, ad-supported tiers—giving advertisers a way to reach premium audiences.

Advertising Video on Demand (AVOD)

AVOD platforms like Pluto TV, Tubi, and Freevee provide free content–you just have to watch a few ads. Since viewers opt-in to free ad-supported streaming television, platforms can provide brands with a high-reach, cost-effective way to advertise to those audiences.

Transactional Video on Demand (TVOD)

Also known as pay-per-view, TVOD services like Apple TV and Google Play provide the ability for users to rent or buy individual movies and shows. While advertising opportunities are limited, brands can explore product placements (and sometimes partnerships) within premium content.

Premium Video on Demand (PVOD)

Think of this as upscale TVOD with a twist. Get access to early movie releases or exclusives at a premium price. Similar to TVOD, advertising options are limited, but sponsorships tied to big drops can be advantageous if you have the budget to do so.

Best OTT Advertising Platforms

So, how do you reach these audiences? Through OTT platforms, of course. Here are a few big ones to consider:

Netflix

Once a purely subscription-based platform, Netflix now offers an ad-supported tier, giving brands access to high-value audiences watching premium, on-demand content. While inventory is still limited, Netflix’s vast subscriber base makes it a growing player in the OTT ad space.

• Learn more about Netflix advertising.

Hulu

One of the pioneers of ad-supported streaming, Hulu blends SVOD and AVOD, offering brands placement within both on-demand content and live TV. They offer advanced targeting with a combination of short- or long-form ad slots. Hulu remains a go-to for advertisers needing both reach and engagement.

• Learn more about Hulu advertising.

Peacock

NBCUniversal’s streaming service operates on a hybrid model–free, ad-supported content with premium subscriptions. Its deep library of shows, movies, and live sports makes it a great choice for brands trying to align themselves with high-quality programming.

• Learn more about Peacock advertising.

Roku

A dual threat as a platform and device giant, Roku delivers ad-supported content with first-party data and a slew of targeting options across a huge audience. It’s a no-brainer to include Roku advertising as part of your OTT strategy.

• Learn more about Roku advertising.

MNTN

Unlike platform-specific ad buys, MNTN’s Performance TV gives marketers access to premium CTV inventory across several major streaming advertising platforms, all within a single self-serve platform. With automated optimization, real-time reporting, and precise audience targeting, MNTN turns CTV into a performance marketing channel that drives measurable results.

Types of OTT Ads

OTT advertising isn’t one-size-fits-all. Different ad formats offer different levels of engagement, and knowing how they work can help marketers build more effective campaigns.

Here’s a breakdown of the main types:

• Pre-Roll Ads – These ads play before a viewer’s chosen content, ensuring brands get their message across before the show starts. High visibility and strong completion rates make them a go-to for awareness and engagement.
• Mid-Roll Ads – Delivered during natural content breaks, mid-roll ads keep viewers engaged while they wait for their program to resume. Since audiences are already invested in the content, these placements often see higher retention and recall.
• Post-Roll Ads – Appearing after a video ends, post-roll ads reinforce brand messaging without interrupting the viewing experience. While engagement may be lower, they’re useful for keeping brands top of mind.
• Banner Ads – Static or animated display ads that show up in streaming menus or interfaces, keeping brands visible while users browse for content. These are great for subtle but consistent exposure.
• Overlay Ads – Semi-transparent ads that appear over video content without fully pausing the experience. They keep messaging in front of audiences without disrupting their show.

A strong OTT strategy often mixes these formats, ensuring brands capture attention before, during, and after content—without wasting impressions.

Types of OTT Devices

OTT content isn’t tied to a single screen—viewers stream across multiple devices, and advertisers need to follow them wherever they watch. Understanding the different types of OTT devices helps marketers ensure their ads reach audiences in the right environment.

Here are the primary categories:

• Smart TVs – Internet-connected TVs from brands like Samsung, LG, and Vizio come with built-in streaming capabilities, allowing users to access apps like Netflix, Hulu, and YouTube without additional hardware. Smart TVs are a major driver of CTV ad growth, offering a premium, full-screen viewing experience.
• Streaming Devices – Devices like Roku, Amazon Fire TV, Apple TV, and Chromecast turn any standard TV into a connected one, giving users access to a wide range of streaming platforms. These devices power a massive share of OTT viewing, making them prime real estate for advertisers.
• Gaming Consoles – PlayStation, Xbox, and even Nintendo Switch double as streaming hubs, allowing users to access OTT platforms alongside gaming. With younger, highly engaged audiences, gaming consoles offer unique ad opportunities for brands looking to reach digital-first consumers.
• Mobile & Tablets – Smartphones and tablets let users stream content on the go, whether through dedicated streaming apps or mobile browsers. While mobile OTT ads typically appear as in-app video placements, they still offer valuable reach—especially for second-screen engagement.
• Laptops & Desktops – Many viewers stream directly from web browsers on their computers, whether catching up on shows, watching live sports, or tuning into free, ad-supported content. While not as immersive as CTV, desktop and laptop OTT still provide targeted advertising opportunities.

The best OTT ad strategies consider all these devices, ensuring brands stay in front of their audience—no matter how or where they stream.

OTT Metrics and Measurement

OTT advertising campaigns give marketers the best of both worlds—the impact of TV with the precision of digital. Unlike traditional TV ads, which rely on estimated reach, OTT measurement provides real-time, data-driven insights that allow brands to track performance and optimize campaigns for maximum efficiency.

Here are the key metrics that matter in OTT marketing:

• Ad Impressions – The total number of times your ad is served, showing how many opportunities your campaign has to make an impact.
• Return on Ad Spend (ROAS) – A performance benchmark that calculates revenue generated for every dollar spent on your campaign, giving a clear view of profitability.
• Cost per Completed View (CPCV) – The average cost paid for each fully watched ad, ensuring ad spend goes toward engaged viewers—not wasted impressions.
• Cost per Acquisition (CPA) – The total cost of driving a conversion, whether it’s a purchase, sign-up, or another key action tied to campaign goals.
• Audience Reach – The percentage of unique viewers within your target demographic who have been exposed to your ad at least once.
• Frequency – The average number of times an individual viewer sees your ad, helping to balance brand recall without oversaturating the audience.

Keep in mind, these are just a few KPIs. With these metrics, advertisers get real-time visibility into campaign performance, allowing for data-driven decisions that maximize ROI.

OTT Marketing Best Practices

In OTT advertising, you need to show up strategically. With streaming audiences growing and competition heating up, marketers need to go beyond basic targeting and embrace advanced OTT advertising strategies.

1. Prioritize Audience-First Targeting

Forget broad demographics—OTT allows you to reach highly specific viewers based on a wide variety of attributes. Don’t ignore this. Leverage first-party data, retargeting, and lookalike audiences to serve ads to the people most likely to engage and, ultimately, convert.

2. Layer in Contextual Targeting

Go beyond basic audience segmentation by aligning ads with relevant content. A travel brand placing ads within adventure documentaries or a fitness brand appearing during workout streams ensures your brand’s messaging resonates in the right environment.

3. Optimize for Attention, Not Just Views

Ad completion rates are great, but engagement is better. Keep your ads concise, use creative storytelling techniques, and ensure the company’s branding appears early to capture interest before viewers tune out.

4. Leverage Automated Optimization

Manual campaign management leaves performance on the table. Use AI-driven optimization tools. These tools and software suites can automatically adjust bids, creative rotation, and targeting efficiency based on live performance data.

5. Use Sequential Messaging

OTT allows you to tell a story using multiple touchpoints, not just a single touchpoint. Serve an awareness ad first, followed by a product-focused message, then a CTA-driven spot—guiding viewers through the marketing funnel.

6. Align Creative with the Viewing Experience

OTT is not synonymous with social media. Ads should be high-quality, full-screen, and TV-ready—ditch the small-screen aesthetics and ensure visuals and audio are optimized for premium streaming environments.

7. Tap Into Household-Level Targeting

Unlike most digital ads, OTT reaches entire households, not just individual users. Tailor your brand messaging toward multiple decision-makers, especially for items with broader purchasing influence.

8. Maximize Reach with Cross-Device Retargeting

Viewers don’t just stream on TVs—they switch between mobile, tablets, and desktops. Retarget users across devices to reinforce messaging beyond the big screen, giving your brand access to more conversion avenues.

9. Measure Beyond Impressions

Tracking impressions isn’t enough—focus on meaningful metrics like site visits, conversions, and return-on-ad-spend. With MNTN Performance TV, Verified Visits™ technology can draw a clear line between ad exposure and real-world results.

10. Continuously Test and Iterate

OTT campaigns should never be static. You should always be testing different creatives, CTAs, audience segments, and ad formats. These tweaks help refine performance and identify what truly drives ROI.

How Much Does OTT Advertising Cost?

OTT advertising doesn’t come with a one-size-fits-all price tag—it’s built for flexibility. Not to beat a dead horse here, but with linear TV, brands lock in expensive, broad-reach ad buys. OTT lets advertisers control their budget and optimize ad spend in real time.

With that said, several factors influence the OTT advertising cost:

• Audience Targeting – The more precise your targeting, the higher the cost per impression—but with better efficiency and lower wasted spend.
• Ad Placement & Inventory Quality – Ads running on premium streaming platforms in high-demand time slots will almost always cost more due to competition and viewership quality.
• Campaign Duration & Frequency – Extending a campaign or increasing the number of times an individual viewer sees your ad impacts overall budget. However, repetition can also improve brand recall.
• Creative Production Costs – High-quality, engaging ads will drive better results, but they’ll also cost a lot more to produce. That is, of course, unless you’re using MNTN’s Creative-as-a-Subscription™ solution, which bundles refreshed creative in with your ad spend.
• Bidding & Programmatic Buying – OTT ads are often purchased through programmatic platforms, where pricing fluctuates based on seasonality and demand by competitors bidding on the same audience.

OTT Advertising Examples

There are plenty of great OTT advertising examples that companies use for their performance marketing campaigns. Please take a look at a few of our favorites!

MNTN

The first OTT example is from MNTN and features our Chief Creative Officer, Ryan Reynolds. Yeah, we’re a little biased, but that’s because we use our own OTT advertising platform to promote our business—because it works. Check it out!

Rumpl

Rumpl decided to give OTT advertising a whirl with this fantastic commercial pitching their super fashionable and super warm blanket created from recycled materials. It’s a great advertisement that immediately pulls you in and speaks directly to the soul of the adventure-bound traveler.

Replacements

For lovers of fancy and elegant dining table decor, Replacements is for you. This OTT example sticks to a tried and true formula of explaining a common problem, providing a solution, pitching the value proposition, and doing so in under 30 seconds. Short and sweet, just how viewers like it.

1Password

What the heck, let’s do another example with Ryan Reynolds. You have to admit, he’s a pretty fun guy. This OTT ad features 1Password, an advanced cybersecurity password manager to keep all your digital data safe. It’s another funny and memorable video creative that gets right to the point.

MNTN Performance TV: The Ultimate OTT Platform

Ready to take your OTT advertising to the next level? MNTN Performance TV combines the power of premium Connected TV placements with advanced targeting and real-time measurement—so every ad dollar drives real results.

Here’s what sets us apart:

• MNTN Matched: Leverage AI-powered audience targeting to connect with the most relevant viewers and drive better campaign results.
• Flexible, Performance-Driven Budgets: No long-term commitments—run campaigns on your terms and optimize in real time.
• Verified Visits™ Attribution: Track conversions, site visits, and ROAS with real-time insights that show exactly how your ads perform.
• Premium, Brand-Safe Inventory: Appear only on top-tier streaming networks, ensuring high-quality placements for maximum impact.
• Creative-as-a-Subscription™: Get high-quality, CTV-optimized ad creative bundled into your campaign—no need for extra production costs.

Power up your OTT strategy with MNTN’s self-serve software—sign up today to get started.

OTT Marketing Platforms: Final Thoughts

As you can imagine, we’ve only scratched the surface here, and our team is ready to answer any further questions you may have about OTT marketing and the benefits of OTT advertising platforms like MNTN Performance TV.

If there’s something you’d like to clarify further, or if there are any challenges you’re facing in your current digital campaign strategy, we’re here to help.

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