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

Advertising, Connected TV

OTT advertising isn’t some distant trend; it’s the new baseline. As viewers abandon cable for streaming, marketers are right behind them, reallocating budgets to match shifting habits. By 2025, U.S. streaming TV ad spend is expected to clear $30 billion, officially positioning OTT as a pillar of performance marketing.

But being present on streaming platforms isn’t the same as performing on them. Winning in OTT takes more than just showing up. It demands a smarter strategy. That means access to premium inventory, pinpoint audience targeting, and real-time performance insights that guide your next move before the credits roll.

In this guide, we’ll break down what it takes to master OTT advertising in 2025, so your next campaign doesn’t just air, it delivers.

What is OTT Advertising?

OTT (over-the-top) advertising delivers video ads via the internet—no cable bundles, no satellite dishes, just premium content streamed directly to viewers on smart TVs, mobile apps, and other connected devices.

What sets it apart? Precision. OTT moves beyond the broad strokes of linear TV advertising with advanced targeting, real-time analytics, and measurable performance. It’s tailor-made for marketers who need data to drive informed decisions and proof that their ads are delivering results.

OTT vs Connected TV (CTV)

Think of OTT as the delivery system. It’s how streaming content travels across the internet. Connected TV is the destination: the internet-connected screens, usually smart TVs or streaming devices, where your ads actually play.

• Learn more about the differences between OTT and CTV.

OTT vs Video on Demand (VOD)

VOD is any content viewers can watch whenever they want, subscription-based, ad-supported, or somewhere in between. OTT, on the other hand, refers specifically to internet-delivered content. Every OTT ad falls under the VOD umbrella, but not every on-demand stream carries OTT advertising.

Benefits of OTT Advertising

OTT advertising doesn’t just get your message on screen. It puts it in front of the right audience, at the right moment, with the kind of performance metrics you can take to the C-suite. Where linear TV casts a wide net and crosses its fingers, OTT brings digital precision and accountability.

Here’s what sets it apart:

Targeting That Actually Hits the Mark

OTT taps into real-time audience data, like interests, behaviors, and demographics, to deliver ads that feel like they were made for the viewer. It’s performance marketing for the biggest screen in the house.

Viewer Engagement That Goes the Distance

OTT audiences are leaned in, not tuned out. With ads that match the moment and interactive formats that invite action, OTT creates a better experience and better results.

Performance Data You Can Act On

No more post-campaign guesswork. OTT platforms offer clear, real-time visibility into what’s working, from impressions to conversions, so you can optimize mid-flight and show ROI that speaks for itself.

How Does OTT Advertising Work?

OTT advertising trades old-school TV advertising for smarter, more strategic moves. But, how does it work? What are the steps involved? Here’s a quick rundown:

1. Lock in Your Goals and Audience

Whether you’re looking to boost brand awareness or drive conversions, start with a clear objective. Then define your audience using real data (demographics, behaviors, even viewing habits) so you’re not just casting a wide net, but zeroing in with purpose.

2. Pick Your OTT Platforms Wisely

Your audience isn’t watching everything. Choose OTT platforms that match your target viewer and content style. Think Hulu, Peacock, Disney+, or niche channels with high engagement. Premium inventory matters here.

3. Craft Creative With Context

Make ad creative that speaks to your audience and feels native to the platform. Whether it’s a quick pre-roll or a more immersive interactive format, design for the screen it’s on and the attention span it commands.

4. Buy Media Like a Pro

Use programmatic advertising tools to distribute your budget where it performs best. OTT platforms let you optimize for action, not airtime, so every impression counts toward your bottom line.

5. Measure, Optimize, Repeat

Monitor key metrics like impressions, ROAS, and conversions in real time. Use that insight to adjust your creative, targeting, or spend while your campaign’s still running, not after it’s over.

Video on Demand 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)

SVOD platforms like Netflix and Disney+ run on paid subscriptions. Viewers get unlimited access to content by paying a monthly fee. While SVOD was once entirely ad-free, many now offer lower-priced, ad-supported tiers. That shift opens the door for advertisers to reach premium audiences in a highly engaged environment.

Advertising Video on Demand (AVOD)

AVOD services such as Pluto TV, Tubi, and Freevee let viewers stream for free in exchange for watching ads. These platforms offer wide reach and cost-efficient access to engaged audiences who have opted in to a free, ad-supported streaming experience.

Transactional Video on Demand (TVOD)

TVOD platforms like Apple TV and Google Play follow a pay-per-view model, where users rent or buy specific shows and movies. While traditional ad space is limited, product placements and branded integrations within premium content can offer strategic exposure.

• Learn more about SVOD vs AVOD vs TVOD

Premium Video on Demand (PVOD)

PVOD provides early access to major releases for a premium fee. Similar to TVOD, direct advertising space is rare, but sponsorships or brand partnerships tied to big content drops can be impactful for brands with the right budget and strategy.

Types of OTT Ads

OTT advertising comes with options. Each format offers a different level of engagement, and the right mix can drive stronger performance across your campaigns. Here’s what you need to know:

In-Video Ads

These run before, during, or after streaming content. Whether skippable or not, pre-roll, mid-roll, and post-roll ads put your message front and center where viewers are already tuned in.

Banner Ads

Displayed above or below the video player, banner ads provide passive visibility without disrupting the viewing experience. Great for staying top-of-mind while the show goes on.

Overlay Ads

These clickable overlays appear directly on top of the video content, capturing attention with a light footprint. They’re designed to be noticed without pulling viewers away.

Companion Ads

Running alongside the video, companion ads serve as supporting visuals that reinforce your message. Think of them as brand billboards that flank the main event.

Interactive and Shoppable Ads

From polls to product showcases, these formats encourage real-time engagement. Viewers can click, explore, and even purchase without leaving the screen.

Types of OTT Devices

OTT advertising isn’t confined to a single screen. Viewers stream across a range of devices, and your campaign needs to keep up. Here’s where your ads can make an impact:

• Smart TVs: Built-in streaming from brands like Samsung and LG makes smart TVs a top destination for high-impact, full-screen ads. This is the front line of Connected TV.
• Streaming Devices: Roku, Fire TV, Apple TV, and Chromecast turn any TV into a streaming machine. These plug-and-play devices open the door to wide-scale reach and highly engaged households.
• Gaming Consoles: PlayStation and Xbox aren’t just for gameplay. They’re major streaming gateways for younger audiences, giving brands a direct line to digital-first viewers.
• Mobile and Tablets: Perfect for streaming on the go, these devices allow for second-screen opportunities and expanded reach beyond the living room.
• Laptops and Desktops: Viewers still stream through browsers, especially during work hours. These devices offer additional flexibility and frequency for your OTT campaigns.

Best OTT Advertising Platforms

To reach today’s streaming audiences, you need to meet them where they watch. Here are some of the top OTT platforms making that possible:

Netflix

The streaming giant now offers an ad-supported tier, unlocking access to a massive, high-value audience. While inventory is still ramping up, its scale and prestige make it a powerful addition to your media mix.

• Learn more about Netflix advertising.

Hulu

As one of the first major players in ad-supported streaming, Hulu combines live TV and on-demand with strong targeting capabilities. With both short- and long-form ad options, it’s ideal for brands looking to balance reach and viewer engagement.

• Learn more about Hulu advertising.

Peacock

NBCUniversal’s streaming platform delivers a blend of free and premium content, including a robust lineup of series, movies, and live sports. It’s a smart option for brands aiming to associate with recognizable content and consistent viewership.

• Learn more about Peacock advertising.

Roku

More than just a device, Roku is a full-scale OTT platform with extensive first-party data and broad audience reach. Advertisers benefit from advanced targeting and access to a wide range of streaming channels, all in one place.

• Learn more about Roku advertising.

MNTN

MNTN Performance TV lets marketers reach premium CTV inventory across top streaming platforms through a single self-serve interface. With real-time reporting, automated optimization, and precise targeting built in, it turns streaming advertising into a performance channel that delivers on results.

OTT Metrics and Measurement

OTT combines the storytelling power of TV with the trackability of digital. Instead of guessing at outcomes, marketers get real-time performance data that’s built to inform and optimize. Here are a few metrics to consider when doing OTT measurement:

• Ad Impressions: The number of times your ad is served. More impressions mean more chances to connect, but what counts is who sees them, and what they do next.
• Return on Ad Spend (ROAS): A clear view of your campaign’s efficiency. ROAS tells you exactly how much revenue you’re driving for every dollar spent.
• Cost per Completed View (CPCV): This metric shows what you’re paying for each full ad view. It’s one of the best indicators of whether your creative is landing with the right audience.
• Cost per Acquisition (CPA): The total cost to drive a conversion. Whether it’s a purchase, sign-up, or another key action, CPA shows you how efficiently your campaign delivers real results.
• Audience Reach: The percentage of your target audience who saw your ad at least once. It’s about getting in front of the right viewers, not just more viewers.
• Frequency: The average number of times each person sees your ad. Too low, and they might forget you. Too high, and they might wish they could.

OTT Marketing Best Practices

In a streaming-first world, showing up isn’t enough, and that’s why having the right OTT advertising strategies is critical. Here’s how to make your OTT campaigns work harder and smarter:

• Lead with Audience-First Targeting: Tap into first-party data, retargeting pools, and lookalike modeling to focus your spend on viewers who are most likely to take action.
• Add Contextual Relevance: Match your message to the moment. Serve fitness ads during workout videos or travel promos alongside adventure content to boost relevance and results.
• Use Automated Optimization: Let machine learning do the heavy lifting. With dynamic adjustments to bidding, creative, and targeting, your campaign stays optimized in real time.
• Apply Sequential Messaging: Don’t just drop a one-off ad. Guide your audience through a series of touchpoints—from awareness to conversion—within the same campaign framework.
• Track What Matters: Focus on performance metrics that move the needle. Site visits, conversions, and ROAS give you the clearest picture of what’s working.

How Much Does OTT Advertising Cost?

OTT advertising is built for flexibility. Unlike traditional TV, where you’re locked into broad, pricey buys, OTT lets you fine-tune your spend, adjust on the fly, and pay only for the audiences that matter.

Still, a few key factors shape the final OTT advertising cost:

• Audience Targeting: Precision costs more, but pays off. The more focused your targeting, the higher the CPM, but you’re also minimizing wasted impressions and maximizing efficiency.
• Ad Placement and Inventory Quality: Premium platforms and prime viewing slots come at a premium. High-quality inventory drives better engagement and stronger brand perception, but expect higher competition for those spots.
• Campaign Duration and Frequency: Running longer or showing ads more often will impact spend, but it also boosts brand recall. The key is finding the right balance for your goals.
• Creative Production: Great ads drive great results. High-performing creative often comes with a higher production price tag.
• Programmatic Bidding: OTT ad pricing adjusts in real time based on demand, competition, and seasonality. Programmatic platforms help you navigate these shifts and stay efficient.

MNTN Performance TV: The Ultimate OTT Platform

Looking to level up your OTT advertising? MNTN Performance TV puts your brand on the biggest screens in the best streaming environments, paired with audience targeting and performance insights built for marketers who need more than just reach.

Here’s how we do it:

• MNTN Matched: AI-powered audience targeting that finds your most valuable customers and helps you reach them with precision and scale.
• Flexible, Performance-Driven Budgets: Launch and manage campaigns on your schedule. Adjust in real time with no contracts, no guesswork, and full control.
• Verified Visits™ Attribution: Real-time performance tracking that shows you exactly which ads drive site visits, conversions, and ROAS—so you always know what’s working.
• Premium, Brand-Safe Inventory: Your ads run only on trusted, high-quality networks—so you get the brand impact of TV without the risk.
• Creative-as-a-Subscription™: Fresh, CTV-optimized creative included with your media buy. No extra production hassle. No added cost.

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

OTT Marketing Platforms: Final Thoughts

This guide just skims the surface of what’s possible with OTT marketing. If you’re looking to dive deeper or troubleshoot a specific challenge in your digital strategy, our team is here to help.

Whether you’ve got questions about campaign setup, targeting strategy, or how MNTN Performance TV fits into your marketing mix, we’re ready to talk.