Glossary

Over the Top (OTT)

Over the Top, often shortened to OTT, describes any service that delivers media over the internet directly to the viewer. It bypasses traditional distributors such as broadcast networks, cable operators, and satellite providers. OTT includes video, audio, messaging, and voice calling apps. If you stream a show on a service like Netflix from your smart TV or phone, you are using OTT.

OTT is popular because the only real requirements are an internet connection and a connected device that supports apps or a browser. Viewers choose the device, the time, and the exact content they want.

What Is OTT

OTT is the delivery of media over the public internet without relying on a managed pay TV network. Users access content through apps on smart TVs, phones, tablets, consoles, streaming sticks, or via the web. Services can be funded by subscriptions, advertising, one time purchases, or any mix of these.


OTT vs CTV

OTT refers to the content and the method of delivery over the internet.

Connected TV, or CTV, refers to the device used to stream the content. Examples include smart TVs and plug in devices such as Apple TV, Roku, Amazon Fire TV, Chromecast, and game consoles. OTT is the stream. CTV is the screen.


How OTT Works

  • A user opens an app or site and selects content.
  • The service authenticates the user and retrieves entitlements.
  • A content delivery network streams video or audio in adaptive bitrates suited to the device and bandwidth.
  • If ads are present, an ad server or exchange selects ads based on context and audience signals.
  • Analytics measure playback quality, user actions, and conversions for content and ads.

OTT Monetization Models and Examples

Subscription video on demand, SVOD

Users pay a recurring fee for a library of content. Examples include Netflix, Disney Plus, Apple TV Plus, Amazon Prime Video, and premium music services.

Advertising video on demand, AVOD

Content is free to watch and supported by advertising. Examples include YouTube and Tubi.

Broadcaster video on demand, BVOD

On demand services from traditional broadcasters. Examples include BBC iPlayer and Peacock.

Transactional video on demand, TVOD

Pay per view access for single titles or limited windows. Examples include iTunes and Sky Store.

Free ad supported television, FAST

Free linear style channels streamed over the internet with programmatic ads. Examples include Pluto TV and Samsung TV Plus.

Premium video on demand, PVOD

Early window access for a premium fee before broad release.

Hybrid

Many providers mix tiers such as ad supported plans alongside ad free subscriptions or sell premium events inside a subscription app.


Benefits of OTT Advertising

Precision reach

Ads can target by interests, location, device type, context, and household attributes rather than broad regional blasts.

High attention

Viewers actively choose content and frequently watch on large screens. Many placements achieve strong completion rates.

Rich measurement

Marketers see impressions, completions, clicks, interactive actions, and post view outcomes across devices. This supports incrementality testing, frequency control, and audience refinement.

Flexible buying

You can buy direct from a publisher, through a private marketplace, or programmatically. Budgets and creatives can be adjusted quickly.

Privacy aware options

Modern platforms support contextual and cohort approaches that protect user identity while preserving relevance.


Common OTT Ad Formats

  • Preroll shown before content starts
  • Midroll inserted during natural breaks
  • Postroll displayed after the content ends
  • Picture in picture where a small video ad runs while content plays
  • Interactive video with choices, surveys, or click to site
  • Companion banner that appears beside or below the video
  • Outstream video placed in articles or feeds outside a player

Measurement and Attribution Tips

  • Use a consistent event taxonomy for impressions, starts, completes, and post view conversions
  • Control frequency across devices to avoid over exposure
  • Run geo lift or device level incrementality tests where permitted
  • Align creative to the viewing context such as big screen versus mobile
  • Combine OTT outcomes with broader funnel metrics such as site visits, app installs, and subscription starts

The Future of OTT

Expect continued growth as faster networks and smarter devices expand access. More providers will launch niche libraries and live channels. Hybrid pricing will remain common with ad supported tiers that lower entry cost. For marketers, connected TV will become a core reach channel, with better identity resolution that is privacy safe and more tooling for real time optimization.


FAQs

What does OTT stand for

Over the Top. It means media delivered over the internet without a traditional TV distributor.

How is OTT different from CTV

OTT is the content and delivery method. CTV is the device streaming that content.

Is OTT only video

No. It also includes audio streaming, messaging apps, and internet based voice calls.

What are the main OTT revenue models

SVOD, AVOD, BVOD, TVOD, PVOD, FAST, and hybrid mixes of these.

Why choose OTT ads

Better targeting, strong viewer attention, measurable outcomes, and flexible buying options across screens.

Which ad formats work best

Preroll and midroll are common. Interactive video and companion banners can lift engagement. The best mix depends on campaign goals.


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