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OTT platforms, also known as over-the-top platforms, stream video directly to viewers through the Internet. This type of video streaming service allows marketers to promote their products and service directly to the viewers via their viewing devices.
Advertising on OTT is rich in benefits: targeted ads, advanced analytics, and dynamic ad insertions that allow you to interact with the audience.
OTT platforms allow you to connect with your modern audience. Which OTT platform is best for your business? Learn more about the top OTT platforms used for marketing and advertising.
What is an OTT Platform
What is OTT, and why is it important? What’s more relaxing than watching your favorite Netflix series on your smart TV? Or listening to a podcast via your phone or the Spotify app on your computer?
Over-the-top platforms are the common denominator for all of these actions.
OTT is a term used to describe any content that is streamed from the Internet (not through broadcast radio or network TV). In the last few years, the number of streaming audiences has grown rapidly, making OTT platforms one of the most fertile advertising territories on the market.
Pricing models and content sources models are the two types of OTT platforms that affect how advertisers can advertise to viewers.
Pricing Models
It’s crucial to know how each service provider operates when it comes to OTT marketing. Not all OTT platforms allow the same access. All OTT content can be accessed via the Internet. All streaming services use one of three pricing options to open their content up to customers:
Subscription for Video – Some OTT platforms have subscription plans, in which users pay a fee (usually higher) to access content that is free of advertisements. This model is used by streaming services such as Netflix, Amazon Prime Video, and Disney Plus. It blocks all advertising opportunities, which is a problem for marketers.
Ad-supported (AVOD)- Other OTT platforms operate entirely on advertising to replace subscription fees. This model is used by streaming services such as Tubi TV, Pluto TV, Sling TV, Xumo, and Sony Crackle. These platforms can offer advertisers a wide range of options, depending on their platform.
Hybrid- A hybrid model offers both subscription plans and ads-supported platforms to its customers. Hulu, for example, offers viewers the option of a cheaper subscription with advertisements or a more expensive subscription without advertising. Spotify, for example, offers free accounts that include ads as well as premium subscriptions to enjoy ad-free experiences.
Due to the absence of commercials in subscription-only models, marketers are limited to using ad-based platforms or hybrid OTT platforms to reach their target audience.
Source Code
The origin of the content is another way to distinguish an OTT streaming service. Netflix, Hulu, and other streaming services produce some original content. Others (Fubo TV and Pluto TV) rely primarily on non-original TV content.
The majority of OTT platforms fall into three categories:
Native – Streaming services that create exclusive content are considered native OTT platforms. For example, Netflix, Hulu, Amazon Prime Video, and HBO Max are native services because they produce original shows that viewers can only access on their platforms.
TV Publisher – When watching live TV, you have access to numerous channels and networks like the Discovery Channel, CBS, and Cartoon Network. However, these networks also provide streaming apps where viewers can watch their televised content from a streaming device, such as a laptop or smartphone. These types of OTT platforms are called TV publishers.
Linear Streaming – Linear streaming is quite similar to classic TV programming: Viewers can watch live TV programs slated to air during specific times over the Internet rather than watching via broadcast or cable. OTT platforms like Sling, Pluto TV, and Fubo rely on linear streaming.
Many OTT platforms mix their sourcing. For example, Peacock TV (NBCUniversal’s streaming platform) blends original programming, re-published NBC shows, and live news.
Knowing a platform’s content source can help you decide if it’s the right advertising space for you.
Top OTT Platforms for Businesses
Over the past few years, OTT platforms have quickly grown in terms of viewership–and show no signs of stopping. In 2019, the global OTT industry was valued at $121.61 billion, with projections to reach $1.039 trillion by 2027.1
For businesses, it’s a guaranteed hot spot for consumer interest.
Take a look at our breakdown of the best OTT platforms for advertising businesses to determine which platform will be most beneficial to your advertising campaign and marketing strategy.
Spotify
As the world’s leading audio streaming service, Spotify provides millions of listeners with their favorite music, podcasts, and videos, whether through a mobile device or desktop. It’s particularly useful to businesses looking to target a global audience with niche interests.
Content – Spotify primarily provides audio content through music and podcasts. Although it also provides creator-made video podcasts for those looking for an audible and visual experience. Many of the podcasts are native content, meaning that they’re produced and exclusively shared on Spotify. However, most content on the platform is secondary, meaning that it’s created and uploaded from a secondary source, such as a podcast producer or music artist.
Pricing model – Spotify has a hybrid pricing model. Listeners who choose to use a free membership will have to listen to frequent ads throughout their listening experience. However, listeners who purchase a premium membership for $9.99 a month will have an ad-free experience.
Users – From 2017 to 2020, Spotify grew its total monthly users from 173 million to 356 million.2 Within that number, there are 198 million unsubscribed users with ad-supported listening, making it a great platform for marketers to spread the word about their products or services.
Audience demographics – Spotify’s membership demographic is global and youthful, with listeners in over 178 global markets3 and over 55% of users under 35 years old.4
The Roku Channel
Roku began as a CTV device, connecting TVs to online streaming services. However, in 2017 it also started its own OTT platform–The Roku Channel. After combining its device with a platform, Roku became the most popular Advertising Video on Demand (AVOD) streaming service in the United States.
Content – The Roku Channel offers a mix of secondary and original video content on its platform. However, most of its original content was purchased from Quibi, a failed mobile-only OTT platform.5
Pricing model – The Roku Channel is entirely an AVOD (ad-based) model. However, the Roku device does connect viewers to ad-free subscriptions to other OTT platforms, like Netflix.
Users – At the start of 2021, The Roku Channel had nearly 70 million viewers, six an apparent growth from 23.8 million in 2018.7
Audience demographics – Roku’s audience is relatively even-spread, with a median viewer age of 39.8. Currently, only U.S., Canada, and the United Kingdom can watch its content.9 Additionally, 64% of Roku Channel viewers don’t watch other AVOD platforms, making it their exclusive source for streamed ads.10
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