Advertisement on OTT Platform
What is OTT?
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.
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If you’ve ever binged a show on Freevee, 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 Amazon Streaming TV and online video ads help brands deliver their messages at scale.
OTT meaning and definitions
As mentioned, OTT, or streaming TV, refers to any type of streaming media content delivered over the Internet. It includes subscription-based streaming services where consumers can access content on-demand without having to go through a traditional satellite or cable provider. Viewers can watch OTT content across a range of devices such as mobile phones, gaming consoles, and tablets, but the majority of viewing occurs on connected TVs (CTV).
What is cord cutting?
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.
What is 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.
Advanced TV
Advanced TV is an overarching term referring to streaming content that goes beyond linear television delivery models to other devices and apps. Many of these services are communicated through acronyms like OTT, CTV, TVE, OLV, VOD, SVOD, TVOD, AVOD, and PVOD. Let’s break down what these acronyms mean and how they work.
Connected TV (CTV)
Connected TV, or CTV, is a device that can connect to a TV or smart TV, and is used to deliver streaming video content. They are incredibly popular, with 224MM people using a CTV in the US alone.2 CTVs include gaming consoles, smart TVs, or a digital media player. Essentially, CTV is the device that enables you to connect to the Internet to access video content.
TV everywhere (TVE)
TV everywhere (TVE) allows consumers to access the entertainment content they want over the Internet wherever they are, simply using log-in credentials from their preferred subscription-based service. Sometimes called authenticated streaming or authenticated video on demand (VOD), TVE breaks the boundaries of traditional TV so viewers can stream their favorite content at home, on the bus, or at the beach—anywhere there’s an Internet connection.
Online video (OLV) ads
Online video (OLV) ads run before, during, and after video content on websites. OLV ads appear in both in-stream and out-stream formats, across browsers and apps, and on devices such as desktop, mobile, and tablet. OLV ads can also be embedded within online articles or through banner ads that appear on formats including in-feed video, in-article or in-read video, video in-banner, and interstitial video.
Video on demand (VOD)
Video on demand (VOD) is video content that is accessible to consumers when they want it. There are four main types of VOD: subscription video on demand (SVOD), transactional video on demand (TVOD), ad-based video on demand (AVOD), and premium video on demand (PVOD). The differences between the four are detailed here.
SVOD
Subscription video on demand (SVOD) is content accessible to consumers who have signed up for a subscription to a particular service, allowing them to view as much as they want for a flat rate per month. An example of this is Amazon Prime Video.
TVOD
Transactional video on demand (TVOD) content is purchased through a pay-per-view model. Viewers can either purchase the content for repeated viewing, or rent it for a single-time use. Amazon Prime Video Store is an example of a TVOD service.
AVOD
Ad-based video on demand (AVOD) doesn’t require a subscription or transactional fee, as it’s ad-supported content. An example of an AVOD service is Freevee. Viewers are adding AVOD to their streaming options for more variety. From January to March 2020, 50% of US adults ages 18-44 signed up for an AVOD service; 47% planned to add another in the 12 months following.3
PVOD
Premium video on demand (PVOD) is a newer concept, where film studios and other providers offer premium video content, like access to a movie premiere, at a higher price point. This type of content became more prevalent over the past year as some studios released films straight to streaming services while many movie theaters were closed.
OTT vs. VOD vs. CTV
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.
OTT industry trends
The OTT industry continues to boom, with SVOD being the most popular type of video on demand.4 What’s more, cord-cutting is accelerating among all age groups.
