Remember when watching TV meant sitting through endless commercials with no way to skip them? It was frustrating, especially when they had nothing to do with your interests. Today, things are different as viewers are no longer tied to cable or satellite TV. Instead, they stream content on platforms like YouTube, Hulu, and Prime Video.
For businesses, this shift presents a powerful advertising opportunity. Through OTT “Over-the-Top” advertising, brands can now reach their ideal audience while they watch their favorite shows and videos. Contrary to traditional TV promotions, OTT ones can be targeted based on age, interests, location, and viewing habits, making them more effective and cost-efficient.
In this guide, we’ll explore OTT advertising examples, how it works, and why it’s an essential tool for businesses looking to engage modern consumers.
What Is OTT Advertising?
This means showing advertisements on streaming services instead of cable or satellite TV. People can easily watch these ads on smart TVs, phones, laptops, gaming consoles, and tablets.
Unlike regular TV commercials that reach a random audience, OTT advertisements go to the right people based on their interests, age, and what they watch. This makes them more budget-friendly and effective because businesses can reach people who care about their products.
What is the Difference Between OTT and CTV?
Many people think OTT and CTV mean the same thing, but they are different.
- OTT (Over-the-Top): This means watching videos on the internet, no matter what device you use. You can stream OTT content on a phone, tablet, laptop, or smart TV.
- CTV (Connected TV): This only refers to internet-connected TVs. This can be a smart TV or a regular TV using devices like Roku, Amazon Fire Stick, or Chromecast.
How OTT Advertising Works
OTT ads appear while you’re watching shows or videos on streaming platforms. In contrast to regular TV, where breaks are scheduled, these show up based on your interests.
There are three main ways businesses can buy OTT advertisements:
- Programmatic: These are placed automatically using smart technology to reach the right people. This is a budget-friendly option.
- Platform Direct: Businesses buy commercials straight from streaming services like Roku, Hulu, or Amazon Prime. This gives more control but can cost more.
- Publisher Direct: Advertisements are bought from content makers like NBC, Disney+, or ESPN. This helps businesses showcase their products in popular shows or movies.
Types of OTT Ads That Deliver Results
Just like traditional advertising, Over-the-Top offers a variety of ad formats. The effectiveness of each type depends on the business goals, target audience, and platform.
1. OTT Video Ads
These advertisements appear before, during, or after streaming content, similar to traditional ones but with better targeting. They can range from 15 to 60 seconds and are commonly seen on YouTube, Hulu, and Amazon Prime Video.
2. Banner Commercials
These static or animated display ads appear at the top or bottom of the screen while users browse or watch content. They do not interrupt the viewing experience, making them less intrusive but still highly visible.
3. Overlay Advertisements
These are semi-transparent ads that appear at the bottom of a video while it plays. Unlike in-video advertisements, they do not pause the content, allowing users to continue watching while seeing the ad.
4. Interactive Commercials
These allow users to engage with the ad by clicking, answering a question, or exploring more details. These are particularly effective for e-commerce brands looking to drive immediate action.
5. Pause Ads
These appear when a user pauses a video. Since the viewer is already pausing their content, these commercials do not feel intrusive, making them a subtle yet effective way to capture attention.
OTT Advertising Examples: How Brands Are Succeeding
Nike: Targeting Fitness Enthusiasts
Nike used ads on Hulu and YouTube to connect with people who love sports and fitness. Their commercials showed new products, famous athletes, and inspiring stories. This made people remember the brand and buy more products.
Pepsi: Making Ads Interactive
One of the OTT advertising examples is Pepsi, which worked with Netflix to create fun ads where viewers could click or scan a QR code. This helped Pepsi track interest and engagement. More people interacted with the advertisements, making the campaign a success.
Toyota: Driving Sales with Over Top-the-Top’s Advanced Targeting
Toyota used ads on Hulu and Roku to reach people thinking about buying a car. They showed commercials to the right audience based on location and interests. This led to more visits to their website and car dealerships.
Airbnb: Telling Travel Stories
One of the OTT advertising examples is Airbnb, which created commercials featuring real hosts and travel experiences. These ads appeared on Hulu, inspiring viewers to book unique trips. This approach helped Airbnb increase bookings and build trust with customers.
Benefits of OTT Advertising for Businesses
1. Advanced Audience Targeting
Over-the-Top ads let businesses reach specific groups based on age, location, and interests. This ensures their message reaches the right people at the right time.
2. Higher Engagement Rates
In contrast to traditional TV advertisements that people can skip or ignore, many Over-the-Top commercials can’t be skipped. This means more people actually watch them from start to finish.
3. Better Measurement & Analytics
Businesses can see how many people watched their advertisements, how long they watched, and if they took action. This helps businesses improve their advertisements and get better results.
4. Cost-Effective Compared to Traditional TV Advertising
With Over-the-Top, businesses only pay for the people who actually see their commercials, not for random viewers. This makes it more budget-friendly than regular ones.
5. Works Without Third-Party Cookies
OTT ads use direct data from viewers, so they still work even as privacy rules change and cookies disappear.
Best OTT Advertising Platforms for Businesses
Netflix
For years, Netflix remained ad-free, relying solely on subscription revenue. However, in November 2022, Netflix launched a “Basic with Ads” plan, allowing brands to advertise on the platform.
How Netflix Uses Over-the-Top Advertising for Brands
- Netflix offers 15- and 30-second video ads that play before and during select content.
- Brands can target ads based on users’ location, content preferences, and viewing habits.
- In contrast to other platforms, Netflix limits ad frequency, ensuring a less disruptive user experience.
- Early advertisers include L’Oréal, GM, and Anheuser-Busch, who saw higher engagement rates compared to traditional TV commercials.
Why Netflix Matters for Over-the-Top Advertising
- Global Reach: Netflix has over 300 million subscribers worldwide, making it one of the most powerful platforms for OTT advertising.
- Premium Audience: Netflix’s audience actively chooses content, leading to higher engagement with commercials.
- Brand Safety: Netflix offers a controlled environment, reducing concerns about ad placement next to inappropriate content.
YouTube
For years, YouTube has dominated online video content, making it a prime platform for OTT advertising. With over 2 billion monthly users, it offers extensive reach for brands.
How YouTube Uses Over-the-Top Advertising for Brands
- Offers skippable and non-skippable, bumper, overlay, and pause ads.
- Allows brands to target audiences based on demographics, interests, and search behavior.
- Supports interactive elements like shoppable ads and call-to-action overlays to drive engagement.
Why YouTube Matters for OTT Advertising
- Massive Audience: YouTube is one of the largest Over-the-Top platforms, reaching users across all demographics.
- Advanced Targeting: Google’s data-driven algorithms help advertisers reach the right audience.
- Engagement Potential: Interactive ad formats lead to higher click-through rates compared to traditional TV ads.
Hulu
Hulu shows advertisements during shows and movies, when viewers pause, and even between episodes. This makes it a great way to reach people who love to binge-watch.
How Hulu Uses OTT Ads for Brands
- Shows commercials during commercial breaks, when viewers pause, and between episodes.
- Targets users based on what they watch and like.
- Offers interactive commercials that let viewers engage with brands.
Why Hulu is Important for OTT Ads
- Engaged Viewers: People who binge-watch are more likely to see and remember advertisements.
- Creative Ad Formats: Pause and interactive ads make the experience smooth.
- Brand Safety: Ads appear alongside top-quality content.
Roku
Roku is a popular streaming device that also offers different types of advertisements.
How Roku Uses OTT Ads for Brands:
- Shows commercials on the home screen, in videos, and as pop-ups.
- Helps advertisers reach people based on what they watch.
- Expands free, ad-supported content, giving brands more space for commercials.
Why Roku is Important for OTT Commercials:
- Huge Audience: Roku is one of the top streaming platforms in the U.S.
- More Ad-Supported Content: More shows and movies now include advertisements.
- Active Viewers: Roku users search for content, making advertisements more effective.
Disney+
Disney+ now has an ad-supported option, letting brands show ads in premium content.
How Disney+ Uses OTT Ads for Brands:
- Plays video ads before and during some shows and movies.
- Targets based on age, interests, and what viewers watch.
- Works with big brands in different industries.
Why Disney+ is Important for OTT Ads:
- Premium Content: Advertisements appear with blockbuster movies and hit Disney series.
- Family-Friendly: A safe platform for brands to advertise.
- Worldwide Reach: Ads can be shown to people in different countries.
These platforms show how OTT services examples work, helping brands reach the right viewers in new and engaging ways.
Conclusion
OTT advertising examples show how businesses can reach the right people easily. These ads help companies to find their customers, keep them interested, and see clear results.
