Traditional TV advertising is no longer enough. With the rapid rise of streaming platforms and a surge in cord-cutting, people are consuming media in entirely new ways. According to recent studies, over half of U.S. households have now “cut the cord,” favoring internet-connected services for entertainment. For marketers and advertisers, this means one thing—it’s time to adapt.
Enter OTT (Over-The-Top) advertising. By leveraging streaming platforms such as Hulu, Roku, and Amazon Fire TV, brands can reach digital-first audiences with precision, creativity, and measurable results. At Propellant Media, we specialize in helping businesses thrive in this evolving media landscape with cutting-edge programmatic OTT campaigns tailored to their unique needs.
This guide will explore what OTT ads are, why they’re critical in today’s market, and how they can help your business unlock unparalleled growth.
What Are OTT Ads?
OTT stands for “Over-The-Top,” referring to content that is delivered via the internet rather than through traditional cable or satellite services. OTT ads are short video advertisements served on streaming platforms like Hulu or devices like Amazon Fire TV.
Unlike linear TV ads, which require purchasing a spot on a set schedule, OTT ads are highly flexible. They allow advertisers to strategically target viewers based on demographics, locations, interests, and online behaviors.
Types of TV Advertising Explained:
- OTT Ads: Delivered over streaming platforms or devices, targeted based on behavior and audience data.
- Connected TV (CTV) Ads: A subset of OTT, focused on ads served specifically through internet-connected TVs or devices.
- Linear TV Ads: The traditional ad spots shown during scheduled cable or satellite programming.
The Rise of Cord-Cutting & Why Traditional TV Advertising Falls Short
Today’s audiences demand on-demand. Platforms like Hulu, Peacock, and YouTube TV have made it possible to watch what you want, when you want—no cable box required. Consider these stats as evidence of this seismic shift in media consumption:
- Over 70 million U.S. households are now cord-cutters or “cord-nevers.”
- Streaming subscriptions surged by 30% in the last three years.
- Ad-supported streaming models like AVOD (Advertising-Based Video On Demand) are gaining massive popularity.
For advertisers, this means one unavoidable truth: those relying solely on traditional TV ads will struggle to reach modern audiences. The solution? OTT advertising that meets viewers where they are—on streaming platforms, mobile devices, and connected TVs.
The Benefits of OTT Advertising for Brands
1. Advanced Targeting Capabilities
One of the biggest advantages of OTT advertising is its ability to deliver ads to the right people at the right time. Instead of the traditional spray-and-pray approach of linear TV, OTT lets advertisers target audiences based on location, demographics, interests, and even online behaviors. Whether you’re a local coffee shop wanting to reach nearby morning commuters or a luxury brand targeting high-income households, OTT ensures your ad dollars are spent reaching the most relevant audience.
Think of it like this: Instead of putting up a massive billboard on the highway and hoping the right people see it, OTT allows you to hand-pick who sees your ad. With geofencing, for example, a fitness center can deliver ads to people who have recently visited a competitor’s gym. This level of precision not only increases ad effectiveness but also makes sure your budget is being used efficiently.
Here’s what makes OTT targeting so effective:
- Demographic Targeting – Reach audiences based on age, income, and household composition.
- Behavioral Insights – Serve ads based on viewers’ interests, from travel lovers to tech enthusiasts.
- Location-Based Targeting – Use geofencing to deliver ads to people within a specific area.
2. High Engagement & Non-Skippable Ads
How often do you skip ads when watching YouTube? Probably all the time. One of the best things about OTT ads is that they are often non-skippable, meaning your audience is much more likely to watch your full message. Unlike traditional TV, where viewers might leave the room during commercials, OTT ads run when people are actively engaged in streaming content.
This means you have a captive audience. Whether someone is binge-watching their favorite series on Hulu or catching up on the news via Roku, your ad plays in a way that demands attention. With the right storytelling and visuals, your brand can make a lasting impression in just 15 to 30 seconds—without worrying about the dreaded “Skip Ad” button.
Key benefits of non-skippable OTT ads:
- Guaranteed Visibility – Your ad is seen in full, increasing brand recall.
- Higher Engagement – Audiences watching their favorite content are more receptive.
- Stronger Impact – More time to deliver a compelling message without interruptions.
3. Cost-Effective Compared to Traditional TV Ads
Gone are the days of spending tens of thousands of dollars just to secure a prime-time TV spot with no real guarantee of who’s actually watching. OTT advertising operates on a pay-per-impression model, meaning you only pay when a real, relevant viewer sees your ad. This eliminates wasted ad spend on audiences not interested in your product or service.
Think about it this way: Running an ad during the Super Bowl costs millions, and there’s no way to ensure your target audience is actually watching. However, with OTT, your budget is focused on reaching engaged viewers who match your ideal customer profile. Whether you’re a small business or a national brand, OTT levels the playing field by providing cost-effective advertising with measurable results.
Why OTT is more budget-friendly:
- No Wasted Spend – Ads are only served to relevant audiences.
- Flexible Budgeting – Adjust your spending in real-time based on performance.
- Scalable for Any Business – Whether you’re a startup or a global brand, you control costs.
4. Cross-Device Reach
OTT advertising doesn’t just live on smart TVs—it extends across multiple screens, including smartphones, tablets, and desktops. This ensures that your brand stays top-of-mind, no matter where or how people choose to watch content. In a world where consumers seamlessly switch between devices, cross-device reach is crucial for maintaining consistent brand visibility.
Imagine someone starts watching a documentary on their Roku TV at home, then later continues it on their tablet while traveling. If your ad was served during that content, it means they had multiple touchpoints with your brand across different devices.
Cross-device advertising benefits include:
- Seamless Brand Exposure – Your message follows users across their devices.
- Increased Engagement – Multiple touchpoints reinforce awareness and recall.
- Higher Conversion Potential – Viewers can engage
Key OTT Platforms to Consider
When planning an OTT campaign, choosing the right platform is critical. Different streaming services cater to different types of audiences, and selecting the right one ensures that your message reaches viewers in the most effective way possible. Some platforms operate on a subscription-based model with no ads, while others are ad-supported and allow for strategic targeting. Live-streaming services and device-based platforms provide even more ways to reach audiences across multiple screens.
A great example of choosing the right platform comes from a national fitness chain that wanted to target young professionals who were interested in at-home workouts. Instead of spending big on traditional TV, they focused their ad spend on Hulu and YouTube TV—platforms where their audience was already streaming. The result? A 32% increase in website visits and a 19% rise in new memberships within three months. That’s the power of meeting your audience where they are.
Subscription-Based (SVOD)
Subscription Video on Demand (SVOD) platforms like Netflix, Disney+, and HBO Max run on paid subscription models and usually don’t include ads. While these platforms attract massive audiences, their ad-free nature limits direct advertising opportunities. However, this is changing—Netflix and Disney+ have recently introduced ad-supported tiers, opening the door for advertisers to tap into their engaged user bases.
For example, when Netflix launched its ad-supported tier, advertisers saw a unique opportunity. One beauty brand, looking to reach high-income millennials, tested a campaign on Netflix’s new ad-supported plan. Because viewers were highly engaged in long-form content, ad completion rates were over 85%, and the brand saw a 20% lift in brand recall.
Ad-Supported (AVOD)
Advertising-based video-on-demand (AVOD) platforms like Hulu, Peacock, Tubi, and Pluto TV give viewers free or low-cost streaming options in exchange for watching ads. These platforms are great for brands looking to reach budget-conscious consumers who are willing to sit through ads in exchange for free content. Unlike traditional TV, AVOD platforms allow for precise targeting, so advertisers aren’t just throwing their message into the void.
Take a regional auto dealership that wanted to increase foot traffic. They ran an AVOD campaign on Hulu and Pluto TV, targeting users in their local area who had recently searched for car deals. Within six weeks, they saw a 28% increase in showroom visits and a noticeable spike in test drives. By leveraging AVOD’s targeting capabilities, they reached potential buyers when they were actively considering a purchase.
Live Streaming TV (vMVPDs)
Virtual Multichannel Video Programming Distributors (vMVPDs) like YouTube TV, Sling TV, and DirecTV Stream offer a live TV experience without a traditional cable subscription. These platforms attract viewers who still want the structure of live television—think sports fans and news junkies—but with the convenience of streaming.
A perfect example is a sportswear brand that wanted to capture the attention of football fans during major games. Instead of paying for expensive cable TV ads, they ran OTT ads on YouTube TV and Sling TV, targeting viewers watching live sports. The result? A 40% jump in online sales during the campaign period, proving that live streaming TV ads can deliver game-changing results.
Device-Based (CTV)
Connected TV (CTV) devices like Roku, Chromecast, and Amazon Fire TV act as hubs for streaming content, making them prime real estate for targeted ads. These platforms are particularly valuable because they allow advertisers to reach viewers watching high-quality, long-form content on their TVs—where engagement levels tend to be higher.
For instance, a luxury travel company wanted to reach affluent consumers planning their next vacation. They ran an OTT campaign exclusively on Roku and Amazon Fire TV, targeting users who had searched for travel deals in the last 30 days. Because the ads were served while viewers were engaged in their favorite shows, they saw a 25% increase in bookings and a 12% higher click-through rate than their previous social media ads.
The Bottom Line
Choosing the right OTT platform can make or break your advertising campaign. Whether you’re targeting binge-watchers on Netflix’s ad tier, local customers on Hulu, or sports fans on YouTube TV, the key is to align your ad strategy with how your audience consumes content. By leveraging the strengths of AVOD, SVOD, live-streaming platforms, and CTV devices, you can make sure your brand is seen by the right people—at the right time—on the right screen.
Real Results from OTT Ads
Real-world examples highlight the effectiveness of Over-The-Top (OTT) advertising strategies. Here are three case studies from Propellant Media that demonstrate significant results across various industries:
Case Study 1: Auto Dealership Reverses Two-Year Sales Decline
A midwestern auto dealership faced challenges due to the COVID-19 pandemic and inventory shortages, leading to a two-year slump in sales. Seeking innovative solutions, they partnered with Propellant Media to implement OTT advertising and geofencing strategies. Starting with a $3,000 monthly budget, the dealership increased its investment to $10,000 and $20,000 over 21 months, reflecting the campaign’s success. This strategic approach allowed the dealership to adapt quickly to fluctuating inventory levels and effectively target potential buyers, resulting in a significant turnaround.
Want to learn more? Take a look!
Case Study 2: Hospital System Boosts Nursing Recruitment
A large hospital system in Denver faced challenges in recruiting nursing staff. Propellant Media developed a comprehensive 12-month strategy that included geofencing, data targeting, site retargeting, Google Ads, pre-roll video, OTT/CTV advertising, and Facebook/Instagram advertising. By building geo-fences around competitor hospitals and targeting nursing professionals, the campaign generated 1,466 application landing page visits, 229,000 OTT video views, and 189,000 YouTube video views, leading to a steady increase in nursing positions.
Want to learn more? Take a look!
Case Study 3: Mattress Store Enhances Furniture Sales with OTT Advertising and Geofencing
A nine-figure mattress store aimed to increase furniture sales by leveraging OTT advertising and geofencing techniques. Propellant Media’s targeted approach allowed the store to reach potential customers more effectively, resulting in a notable boost in sales. This case underscores the power of combining advanced digital advertising to drive business growth.
Want to learn more? Take a look!
These case studies illustrate how tailored OTT advertising strategies can substantially improve inquiries, traffic, and conversions across various industries.
How Propellant Media Can Help
At Propellant Media, we combine deep industry expertise with cutting-edge programmatic tools to create OTT campaigns that deliver real results. Our advanced targeting solutions ensure your ads reach the right audience, while our powerful geofencing capabilities help you pinpoint potential customers with precision. Plus, with transparent performance reporting and actionable insights, you’ll always know how your campaigns are driving growth. 
OTT advertising isn’t the future—it’s happening now. With audiences cutting the cord faster than ever, your brand needs to meet consumers where they’re watching—on Roku, Hulu, YouTube TV, and beyond. Don’t just keep up—get ahead. Partner with Propellant Media today for a free demo and see how data-driven OTT advertising can maximize your ROI and unlock new opportunities for your business.