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

If you’ve ever binged a show on Freevee, streamed a live event on Twitch, or watched your favourite 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 Amazon 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. Over six million households were expected to cord-cut in 2020, bringing the total number of cord-cutter households to 31.2 million. That number is estimated to grow to 46.6 million total cord-cutter households by 2024, or more than a third of all U.S. households.¹ This 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. Amazon 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, Amazon Ads enables brands to engage audiences based on billions of first-party insights, which have been shown to help brands achieve a 44% increase in consideration compared to using demographic attributes alone.⁷

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.

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 Amazon 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 Amazon Streaming TV advertising in your digital campaign strategy.