Remember flipping through channels on a Saturday morning? For many, that’s a distant memory. Today, primetime is anytime, and it happens on platforms like Netflix, Hulu, and Peacock. This massive shift from traditional TV to streaming services has changed how we consume content, and with it, how businesses must approach advertising. If you’re wondering how to reach modern audiences who have cut the cord, OTT advertising is your answer.
We will guide you through the essentials of over-the-top (OTT) advertising. We’ll explain what it is, why it matters for your business, and how you can use it to connect with your ideal customers on the streaming platforms they love.
What is OTT Advertising and Why It Matters Now
OTT advertising, or “over-the-top” advertising, refers to ads delivered to viewers through internet-based video streaming services. Think of the commercials you see while watching shows on Hulu or live sports on YouTube TV. These ads bypass traditional cable or satellite providers, going “over the top” of them to reach viewers directly on their connected TVs, smartphones, and computers.
The importance of this shift cannot be overstated. As audiences move away from scheduled programming, OTT advertising has become a critical part of any modern digital marketing strategy.
The Death of Traditional TV (And What That Means for Your Marketing)
For decades, the 30-second TV spot was the gold standard of advertising. It was expensive but effective for reaching a mass audience. However, the rise of on-demand streaming and “cord-cutting” has fractured that audience. Viewers are no longer tied to a single screen or a network’s schedule. This means your marketing needs to be where your audience is, and increasingly, that’s on streaming platforms.
How OTT Differs from Traditional Digital Advertising
While OTT is a form of digital advertising, it stands apart from social media ads or search ads. OTT ads are typically non-skippable video commercials shown within high-quality, long-form content, similar to a traditional TV ad break. This format gives you a captive audience and the creative space to tell a compelling story, combining the impact of television with the precision of digital marketing.
The Major OTT Platforms and Their Audiences
Not all streaming platforms are the same. Each has a unique content library and attracts a distinct audience. Understanding these differences is key to placing your ads where they will have the most impact.
Premium Platforms: Netflix, Disney+, and HBO Max
These platforms have historically been subscription-based and ad-free. However, many are now introducing lower-cost, ad-supported tiers. Advertising on platforms like Netflix opens up access to a massive, global audience that is highly engaged with premium content. These are often great for broad brand awareness campaigns.
Ad-Supported Platforms: Hulu, Peacock, and Tubi
Hulu has long been a leader in the ad-supported streaming space, offering a mix of next-day TV shows and original content. Platforms like Peacock (from NBCUniversal) and Tubi (from Fox) offer extensive libraries of movies and shows for free, supported entirely by advertising. These services provide significant reach and robust targeting options for advertisers.
Live TV Streaming: YouTube TV, Sling, and Others
Services like YouTube TV, Sling TV, and FuboTV replicate the live cable experience over the internet. They allow advertisers to place ads within live sports, news, and entertainment programming. This is an excellent way to reach audiences who have cut the cord but still want a live TV experience, blending the real-time nature of broadcast with digital targeting.
Targeting Capabilities That Put Traditional TV to Shame
The true power of OTT advertising lies in its precision. Unlike traditional TV, where you might advertise during a show, hoping your target customer is watching, connected TV advertising lets you target specific households and individuals with incredible accuracy.
Demographic and Geographic Precision
Want to reach homeowners aged 35-54 within a 20-mile radius of your office? With OTT, you can. You can layer targeting criteria, including age, gender, income level, education, and specific geographic locations down to the zip code. This ensures your ad budget is spent reaching only the most relevant viewers.
Behavioral and Interest-Based Targeting
Go beyond demographics to target users based on their online behaviors and interests. You can reach people who have recently searched for services like yours, visited competitor websites, or shown interest in related topics. For a professional services firm, this could mean targeting users who have been researching financial planning or legal advice.
Lookalike Audiences and Custom Segments
If you have a list of your best clients, you can use it to create a “lookalike audience.” OTT platforms will analyze the characteristics of your existing customers and find new users who share similar traits, behaviors, and interests. This is a powerful way to expand your reach and find new, high-value leads. You can also retarget users who have previously visited your website.
How to Create Compelling OTT Ads
An OTT ad for a law firm or a wealth management group needs a different approach than one for a consumer product. The goal is to build credibility and trust quickly.
Building Trust Through Video Storytelling
Your ad is an opportunity to tell a story. Instead of a hard sell, focus on communicating your firm’s value and expertise. Use client testimonials, explain a complex topic in simple terms, or showcase the people behind your brand. A professional, well-produced video that conveys authority and empathy can build an instant connection with a potential client.
Technical Specifications and Format Requirements
Each platform has its own rules for ad length, file size, and video quality. Most OTT ads are either 15 or 30 seconds long and must be in high-definition. It’s crucial to produce creative that meets these technical standards to ensure your ad runs correctly and looks professional on a large TV screen.
Compliance Considerations for Professional Services
Industries like finance, law, and healthcare have strict advertising regulations. Your OTT ad creative must adhere to all relevant compliance rules and include any necessary disclaimers. Work closely with your compliance team throughout the creative process to avoid any potential legal or regulatory issues.
Measuring Success: OTT Advertising Metrics That Matter
One of the biggest advantages of digital advertising is measurement. OTT campaigns provide a wealth of data that shows you exactly how your ads are performing and what impact they are having on your business.
Beyond Impressions: Engagement and Completion Rates
While impressions (the number of times your ad was shown) are important, OTT offers deeper metrics. The Video Completion Rate (VCR) tells you what percentage of viewers watched your entire ad. A high VCR indicates your creative is engaging. This is a key metric, as most OTT ads are non-skippable, making completion a strong signal of audience attention.
Attribution and Cross-Channel Impact
How do you know if an OTT ad led to a new client? Attribution models help connect the dots. You can measure how many viewers visited your website or performed a search for your brand after seeing your ad. This helps you understand the ad’s influence on a customer’s journey, even if they didn’t click directly.
Calculating True ROI for Professional Services
By tracking metrics from ad exposure to lead generation and new client acquisition, you can calculate the real return on investment (ROI) of your OTT advertising spend. Connecting campaign data to your client relationship management (CRM) system can show a clear line from an ad view to revenue, proving the value of your marketing efforts.
Take Your Marketing to the Next Level
The way people watch television has fundamentally changed, and your advertising strategy must change with it. OTT advertising offers professional services firms an unparalleled opportunity to reach highly targeted, engaged audiences on the platforms they use every day.
By combining the storytelling power of TV with the data-driven precision of digital, you can build your brand, generate qualified leads, and grow your firm. Want to learn more? Reach out to Move Digital Group today.