How Does Advertising on OTT Networks Work? The Superior Advertising Technology Explained

how does advertising on ott networks work?

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Wondering how does advertising on OTT networks work? Television ads may sound like a thing of the past, but the reality is that they’re well and truly alive—just in a different form. Commercials have evolved immensely over the last few years, and they’ve gone beyond the few seconds in between cable TV shows. People have now changed their media consumption habits, with video content as the most popular one. Advertising has since transformed accordingly to capture the audience’s attention.

Given the popularity and appeal of streaming services, more people have begun to eschew satellite or cable TV. Online video platforms are now more popular than ever, taking the place that broadcast packages have occupied for the better part of the 20th century. Now that everyone has mostly shifted to over-the-top (OTT) television, OTT advertising has arrived—and it looks like it’s here to stay.

What is OTT?

OTT pertains to any streaming platform online that allows anyone to watch videos, television shows, movies, or live programs like sports events without a traditional TV package or service provider. You’re likely very familiar with many OTT platforms like Netflix, YouTube, and Amazon Prime Video—probably because you have one of these yourself!

Whereas you could only watch TV programs on a television set, there are many ways to consume OTT programming. People stream content on their smartphones, computers, tablets, or even smart media devices like Roku, Google Chromecast, or Apple TV, and connect them to television. Gaming consoles have also evolved to offer these capabilities, and Sony has even launched its own OTT service, PlayStation Vue.

How Does OTT Affect Local Commercials?

Given the incredible accessibility of OTT content, anyone can watch pretty much anything on any device. However, that might also seem like a hassle for local businesses who still want to promote themselves through OTT advertising but may not know how to reach their target audience. As many OTT providers offer various content like cable or satellite TV, they may not be available in all markets. However, subscribers to online streaming services like YouTube TV will see the same content the audience sees over the air or through cable or satellite. This service means that if you put an ad with your local network affiliate, these OTT subscribers will view them as well. 

However, some OTT subscribers don’t see any ads at all with standalone apps like Hulu or Netflix, or dedicated apps like HBO GO, as they do not get any local commercials. These services provide content on-demand, with some offering no ads, and others blend abbreviated ads with their content.

how does advertising on ott networks work?

What are the Benefits of OTT Advertising?

OTT advertising often uses other marketing channels to dramatically increase a campaign’s success, like digital banner ads or even traditional television commercials. OTT advertising also offers targeting methods, making it a significant benefit since it allows businesses to reach specific audiences without spending an exorbitant sum of money. Companies can choose different targeting types like geographic targeting, age and gender demographics, or Internet-based targeting.

Another benefit of OTT advertising is that ads placed through these are often non-skippable, which means the audience will view every ad. That guarantees your business visibility, especially where you want it. These ads tend to be shorter, which means they’re more affordable to create and produce.


After reading this you now know the answer to the question, “How does advertising on OTT networks work?” OTT advertising is a significant development in a rapidly changing digital landscape. People now consume media in many different ways, and advertising has evolved along with it, becoming better and even more useful. By learning about OTT advertising basics, you can use the current technology to promote your business and boost your visibility.

If you’d like to know more about OTT advertising, let us know at EIC Agency! We’re experts with the analytics that reveal the pain points your target audience has, and we can present the value your company offers through our content distribution service and more. Contact us today to get started!

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