OTT Platforms: The Top Streaming Services for Advertisers in 2024

Over-the-top (OTT) media delivery has changed the way we watch television — and in the process, it’s revolutionized advertising. 

You see, cable, satellite, or over-the-air (OTA) broadcasts rely on legacy technologies for ad placement. Commercials on these services are purchased based on broad demographic data and estimated viewership numbers, if anything at all. 

As such, ad targeting and measurement is limited on traditional TV. Oftentimes, every person tuning into a broadcast sees the same generic ads and advertisers have little info to go off when determining the impact of these efforts.

OTT advertising, on the other hand, is 100% digital. This allows advertisers to reach precise audience segments and then track those viewers’ actions following ad exposure. For instance, a health food store could run a campaign targeting people within a specified zip code who purchase organic products, and then monitor online and in-store purchases made by those specific viewers.

In this way, OTT advertising combines the best parts of traditional TV (big-screen impact and hyper-engaged viewers) with the best of digital (including data-driven targeting and measurement). 

But the OTT landscape is vast. Countless different platforms vye for eyeballs. Today, the average U.S. household subscribes to four paid streaming services at a time. And just as the viewing experience varies across Hulu, Netflix, Amazon Prime, etc., so too do the advertising capabilities.

So how can media buyers create a holistic strategy given this fragmentation? And what should advertisers consider when buying OTT inventory? 

Get the skinny in this guide to OTT platforms.

What Are OTT Platforms?

OTT platforms refer to the streaming services that deliver video content directly to viewers using the internet, rather than through satellite or cable providers. Max, the Roku Channel, and PlutoTV are all examples of OTT platforms.

While these services initially gained popularity by offering ad-free content, this is no longer the case. Every major OTT platform offers an ad-supported tier today. And for some (we’re looking at you, Amazon Prime), ad-supported streaming is now the default option.

Types of OTT Platforms

Streaming TV services come in a few different flavors in terms of how the content is monetized and distributed.Three categories dominate the landscape: HVOD services like Netflix, vMVPDs like YouTube TV, and FAST channels like Tubi

Need us to spell out those acronyms? Not a problem.

• Hybrid video on demand (HVOD): Ad-supported subscriptions to services like Netflix, Prime, and Disney+ are an example of HVOD because they generate revenue through a mix of commercials and subscription plans. This appeals to viewers who want premium content without the premium price.
  
  
• Virtual multichannel video programming distributors (VMVPD): YouTube TV is the best-known example of a vMVPD. Buy Sling, Hulu Live, and Fubo were early members of the club. These services deliver linear TV channels, with ads, to paying subscribers. The target market for these services are consumers looking to cut the cord without losing access to premium live sports content and must-watch shows from popular cable networks.
  
  
• Free ad-supported streaming TV (FAST): For viewers looking to do away with paid subscriptions altogether, FAST apps make it easy. These streaming services deliver linear channels at no cost to viewers — playing everything from reruns, classic movies, platform-specific content, and local news. Many smart TVs (like Roku) have default FAST apps (like the Roku Channel), giving viewers a free and easy option for lean-back viewing out of the box.

Most viewers today access a mix of OTT platforms, often combining one or two premium, ad-free services with several free or lower-cost ad-supported options. 

Streaming Services That Serve Programmatic Ads

So which streaming platforms sell ad inventory? The chart below groups the top services by category.

This ad inventory can be bought in two ways: programmatically or via direct sales.

With programmatic CTV advertising, advertisers are able to automate media placement across various platforms to deliver targeted ads. This audience-centric approach ensures that marketers reach the right viewers no matter what they’re tuning into. 

The Best OTT Platforms for Advertising

Not all OTT platforms are created equal. In fact, each comes with its own strengths and challenges. 

Here’s a run down the top streaming services to consider when crafting connected TV advertising campaigns.

Amazon Prime Video

Amazon Prime Video is unique from any other streaming service on this list because it doesn’t operate as a standalone service. Instead, Prime Video is included with all Amazon Prime memberships. This translates to a huge audience that’s far less likely to churn. 

Need numbers? Prime Video’s churn rate sits at 8% while services like Discovery+ reach 43%. 

For this exact reason, Amazon was bullish in their adoption of the ad-supported streaming model. While other premium services offered users a lower-cost ad-supported tier when making the switch, Amazon Prime Video went all by making ad-supported the default. 

This wasn't just a minor tweak to their streaming service. It transformed Amazon into one of the largest players in OTT advertising overnight.

Today, Prime Video boasts one of the largest audiences and some of the most compelling audience targeting data. But while Prime’s reach and data granularity are impressive, other considerations like data portability and ease-of-use are also worth considering. Here are some of the pros and cons of advertising on Prime.

Netflix

Netflix is the OG of streaming TV and continues to set the bar for high-quality content. With its vast library of original series, movies, and documentaries, it attracts a diverse and engaged audience, making it an attractive option for advertisers seeking to reach a broad viewership.

That said, Netflix's advertising platform is still in its nascent stages, making it best used as a brand awareness play for the time being.

Disney+ and Hulu

Disney+ is the biggest success story of legacy media companies that transformed to survive the streaming wars. In addition to owning a gold mine of coveted content through acquisitions of Marvel, Pixar, and countless others, Disney has forged strategic tech partnerships to stand the test of time.

Joel Cox, Strategus Co-Founder and EVP of Innovation, explains:

Disney has also gained full control of Hulu after acquiring the remaining stake and launched a super app with both services. This means that advertisers gain access to both audiences when advertising on the platform.

But with great power, comes great responsibility, and Disney’s recent move to favor direct supply paths has made it difficult for many advertisers to access this inventory.

Pluto TV (Paramount)

As one of the earliest movers in the FAST space, Pluto TV launched in 2014 as an April Fool's Joke. The joke, it turns out, was a lucrative one — generating more than $1 billion in ad revenue last year.

Paramount acquired Pluto TV in 2019, and the platform now offers 250+ channels for users to flip between. 

Plenty of Paramount content can be found on the platform, as well as Spanish-language programming, local TV, and an array of niche channels like gaming and anime. Pluto TV is also available on a vast range of devices, including Apple, Google, LG, and Samsung TVs; Amazon Fire and Roku devices; and the web.

Tubi (Fox)

According to Nielsen, Tubi has surpassed Pluto TV in viewership, now accounting for 1% of all streaming. The Fox-owned service has a large collection of free content sourced from Warner Bros Discovery, Lionsgate, MGM, and more. While Tubi’s channel offering lags slightly behind Pluto TV, many users prefer the UI.

The Roku Channel

The Roku Channel has extensive content across its 350+ channels and premium original content like their upcoming “Weird” Al Yankovic documentary (starring Daniel Radcliffe).

Many Roku TV and device users tune in because the app is front and center when they power up their devices. But access to the Roku Channel is fairly limited for non-Roku users. It’s only available on the living room TV if you have a Roku device, Amazon Fire device, or Samsung smart TV.

Xumo Play (Comcast)

Xumo is part of Comcast and Charter Communications streaming hardware play, whereby the cable broadcaster is attempting to go head-to-head with brands like Roku that offer both streaming devices and services.

Thus, the Xumo platform lives inside of Comcast’s hardware (specifically, the company’s Xumo TVs and Xumo set-top boxes) and can also be accessed using Roku and Amazon streaming devices.

FuboTV

Live sports  have taken over streaming, and FuboTV was the first platform to drive adoption. 

The vMVPD service boasts an impressive lineup of sports channels, making it a favorite among cord-cutters who crave their game-day fix without the cable bill. But FuboTV isn't just about sports; it also offers a wide selection of news, entertainment, and lifestyle channels, ensuring there's something for everyone in the household.

Sport and advertising are a match made in heaven, which is why Fubo continues to drive CTV ad innovation. The platform recently announced additional ad units, including interactive ads, pause ads, and marquee carousels.

Sling

Sling TV stands out in the vMVPD space for its flexibility and affordability. With its customizable channel packages, viewers can pick and choose the networks they love, keeping costs down without sacrificing their favorite shows and live events. This a la carte approach appeals to budget-conscious cord-cutters who want more control over their entertainment options.

For advertisers, Sling TV's flexible model presents an opportunity to reach specific audience segments based on their channel preferences. This allows for more targeted and efficient ad campaigns, ensuring your message reaches viewers who are genuinely interested in your products or services. Additionally, Sling TV offers access to local channels in select markets, making it an attractive option for businesses looking to connect with more focused audiences.

Learn more about local TV advertising →

Philo

Philo carves a niche for itself in the vMVPD landscape by focusing on entertainment and lifestyle channels. With a lineup that's heavy on reality TV, lifestyle programming, and popular cable networks, Philo appeals to viewers seeking a lighter, more budget-friendly alternative to traditional cable packages.

For advertisers, Philo offers a unique opportunity to reach a highly engaged audience interested in entertainment and lifestyle content. Its lower subscription cost also attracts a demographic that may be more receptive to value-driven messaging and promotions.

Considerations When Comparing OTT Providers

When placing ads on these streaming services, media buyers have a few things to consider. 

1. Advanced targeting. The whole point of programmatic OTT advertising is pinpointing your ideal customers. So you’ll want to let the data do the heavy lifting rather than making guesses about where your buyers spend their time. This means going beyond basic demographics to target viewers based on their interests, recent life events, and even purchase intent.
   
   
2. Diversification. You want to be confident that your ideal buyers are tuning in to the ads that you’re running. But each OTT service attracts different viewers, and focusing we’d recommend taking a multi-platform approach rather than putting all your budget into a single OTT platform.
   
   
3. Multi-publisher control and measurement. Viewers hate seeing the same ad on repeat. Likewise, advertisers hate wasting ad spend by investing in strategies that don’t deliver results. This is why muli-publisher control and measurement are so important. If you’re diversifying your OTT strategy across a handful of platforms, you’ll want to cap frequency and track performance in a holistic manner. 

These steps are easier said than done, but well worth the effort. If you don’t have the in-house resources to tackle these challenges, consider working with a programmatic OTT partner like Strategus that offers cross-platform targeting and measurement capabilities.

Advertise Across OTT Platforms With Strategus

The OTT ecosystem is vast and disjointed. But it doesn’t have to be. 

By partnering with Strategus, agencies and brands can take advantage of this growing channel without having to choose between different OTT publishers. Our vast library of premium inventory spans 200+ publishers that dominate the media landscape and more than 843 individual deal IDs.

We work with advertisers to reach their audience across networks and apps, no matter what they’re tuning into. We also offer full visibility into everywhere that ads run. From there, we make it easy to quantify ROI at every touchpoint and optimize campaigns in real time.

So rather than trying to determine which OTT platforms are best for your business, make things simple. Start advertising on all the OTT providers in this list using cross-platform ad placement and measurement from Strategus. 

Contact us today to get started →