What is OTT? A complete guide to over-the-top

If you’ve ever binged a show on Prime Video, streamed a live event on Twitch, or watched your favorite network broadcast app on Fire TV, you’ve experienced over-the-top (OTT) video content. OTT, which is sometimes also called streaming TV, represents any content that is delivered directly to viewers via a streaming video service over the Internet, bypassing the traditional cable set box, and typically viewed on a TV.

OTT ads, also known as streaming TV ads, are the advertisements delivered to viewers within this video content. OTT, or streaming TV, ads offer an opportunity for advertisers to reach new audiences at scale as more viewers lean into streaming video content in lieu of traditional cable and broadcast TV. In this post, we will provide an overview of OTT advertising, define common terms, and share how Streaming TV and online video ads help brands deliver their messages at scale.

Cord-cutting, which is when households cancel their subscription to cable or satellite TV, is driving more consumers to stream video through connected TV. As of May 2023, the percentage of U.S. households with cable had fallen from 46.4% down to 12% in a single year.¹ Comparatively, 99% of U.S. households now subscribe to one or more streaming services.² This shift presents a huge opportunity for brands to incorporate streaming TV advertising into their media strategies.

In addition to cord-cutters, there are also “cord shavers,” who are minimizing their pay-TV plans but still using streaming services. And then there’s a growing number of “cord nevers”—people who have never paid for TV subscriptions or premium channels.

Here are some of the key terms advertisers should know for streaming TV.

Streaming TV refers to the distribution of televised content over the Internet to user devices for on-demand viewing. HAQM Prime Video is an example of streaming TV where users can access an array of movies, TV shows, and original content directly over the internet, without the need for traditional cable or satellite subscriptions.

These acronyms are easily confused, as they are all very similar. OTT is related to how content is delivered—which is over the Internet—whereas VOD is related to how the content is accessed by consumers, whether via a single purchase, subscription to a service, or by watching an ad. CTV is the device viewers use to access the content.

Effective streaming TV advertising campaigns leverage audience insights and audience segments. For example, HAQM Ads enables brands to engage audiences based on trillions of first-party insights. This targeted approach delivers measurable results—HAQM Streaming TV campaigns were nearly twice as effective as linear TV campaigns at reaching intended audiences.⁸

Successful campaigns also stay true to their brand message and tone by appearing alongside relevant content, whether that’s hit TV shows and movies, curated news, or live sports. Additionally, streaming TV ads with a clear call-to-action (CTA), like visiting a website, can be helpful, since viewers may have a device nearby while streaming content to perform a CTA if compelled to do so.

Measurement is a critical element of any digital ad campaign, and streaming TV advertising is no different. It’s important for advertisers to know which audiences they are connecting with and how different ad products, like audio or display, complement and amplify an streaming TV investment. Compared to streaming TV, linear TV ad measurement typically relies on TV attribution or analysis by cable or satellite providers and agencies. Streaming TV measurement is more comprehensive, and advertisers can leverage audience insights to understand the audiences their campaigns reach. Some useful metrics to measure campaigns are brand reach, brand lift, and offline lift.

The ever-evolving TV streaming landscape is full of possibility and opportunity for brands. We’re excited to help you work smarter—not harder—to expand your reach and build impactful and relevant interactions with customers. Everything we do at HAQM Ads is about creating better customer experiences and driving outsize value for brands, so your OTT video ads campaign can show up to the right audience at the right time—for more impactful, more lasting connections. Learn more about harnessing HAQM Streaming TV advertising in your digital campaign strategy.