If you’ve ever streamed your favorite show and seen an ad before it starts, you’ve already experienced OTT advertising in action. But OTT (Over-The-Top) is more than just a quick commercial before a video—it’s a powerful, highly targeted way for brands to reach audiences where they’re already watching.
Let’s break down the different types of OTT advertising and how each one works.
WHAT IS OTT ADVERTISING?
OTT refers to content delivered via the internet rather than traditional cable or satellite. Think streaming platforms like Hulu, Roku or Peacock. OTT advertising allows businesses to place ads directly within that content—often with better targeting and measurable results than traditional TV due to digital’s ability to target through behavior and interest data, in addition do demographics and geographics.
MAIN TYPES OF OTT ADVERTISING
Pre-roll ads are the most familiar format. These ads play before the content begins. They offer high visibility, which aids awareness, and are often considered less intrusive. They can also offer viewers an opportunity to engage further as many ads are clickable (through a link or QR code) to the brands website or other landing pages.
However, they often allow viewers to skip out before ad completion, so it is important to utilize engaging creative. It can also be helpful to include a logo early in the ad, as well as mention of the product or service. It is worth noting that research shows some increased brand awareness even when viewers skip out in the first :03 seconds.
Why they work:
- High visibility (viewers are waiting for content to start)
- Strong completion rates (despite being skippable)
- Engagement opportunity through clickable ads
- Great for brand awareness
Best for:
- Short, impactful messaging
- Product launches
- Quick brand introductions
Mid-roll ads appear during the content—similar to traditional TV commercial breaks. These ads can be considered more intrusive yet deliver a higher completion rate because audiences are already immersed in content and less likely to skip, therefore providing a good opportunity to engage viewers in your story or message.
Why they work:
- Captive audience already engaged in the content
- Higher completion rates than many other digital formats
Best for:
- Longer storytelling
- Deeper brand messaging
Post-roll ads run after the content ends. Although they typically have lower completion rates as loyal viewers may exit the program, they can still be an effective and important part of the strategy, especially for last-minute recall and strong Calls To Action. They also tend to be the most cost effective and, like pre-roll, may offer engagement through clickable ads.
Why they work:
- Less competition for attention
- Can reinforce messaging
- May offer engagement opportunities through clickable ads
Best for:
- Retargeting messages
- Calls to action
CTV (Connected TV) ads are served on internet-connected television devices like smart TVs, Roku, Fire Stick or gaming consoles. The key difference to note here is that CTV refers to the device, while OTT refers to the delivery method.
CTV offers more precise targeting than traditional linear TV, but like linear TV, can be fragmented as more and more streaming platforms emerge. These ads typically run in high-quality, full-screen, non-skippable formats with completion rates often exceeding 95%.
Why they work:
- Big-screen experience with precise digital targeting
- Non-skippable in many cases
- Premium, TV-like environment
- Often more cost effective than traditional linear TV advertising
Best for:
- Brand credibility
- High-impact visuals
- Regional or national campaigns
WHY OTT IS AN IMPORTANT CONSIDERATION FOR YOUR MEDIA MIX
Consumers are cutting the cord, and advertisers are following. As viewers abandon traditional cable, OTT becomes the most effective way to reach the growing demographic of streaming-first viewers. It’s also important to note that many viewers who still subscribe to traditional viewing are also streaming, which means streaming has the potential to reach all desired audiences.
OTT provides the best of both worlds:
- The storytelling power of TV
- The targeting precision of digital marketing
So whether you’re a local business or a national brand, OTT advertising offers a flexible, measurable way to reach your audience right where they’re watching.
Not all OTT ads are created equal. The right mix—pre-roll for awareness, mid-roll for engagement, and CTV for impact—can make a significant difference in campaign performance.
If your marketing strategy still leans heavily on traditional channels, it might be time to rethink where your audience is spending their screen time. At Vantage Consultants, we are experts at media strategy and can help businesses of any size and any budget fulfill their marketing goals with a deliberate and thoughtful media mix.
