OTT Targeting: The Top 20+ Tactics and How They Work

Targeted advertising has been around since the early days of the internet. And while it often brings to mind the ads we see while browsing the internet or scrolling through social media, programmatic targeting is also a major benefit of connected TV (CTV).

Because OTT streaming platforms are digital, they connect advertisers with more sophisticated capabilities like audience targeting. Most marketers today rely on basic demographic and location targeting. But with the right technology and service provider, it’s possible to get far more nuanced by building custom audiences.

So let’s talk shop: How does OTT targeting work and what tactics are available? We detail it all below. 

How Does OTT Ad Targeting Work?

OTT ads, including those served on connected TV (CTV) devices, are often purchased programmatically. This means they're bought on a per-viewer basis rather than being tied to specific content. 

Programmatic ad placement also allows advertisers to target specific audiences across various publishers. When done right, this ensures a balance of precision and scale — thereby improving return on ad spend (ROAS)

Here's a gist of how OTT ad targeting works:

1. Audience definition. Media buyers identify a target audience based on their ideal customer profile, campaign goals, and available data. 
   
   
2. Automated bidding. Demand-side platforms (DSPs) use algorithms to bid on ad impressions that match these audience parameters. These factors in budget, audience value, and competitor bids.
   
   
3. Targeted ad delivery. The highest bidder wins the impression, and the ad is served only to viewers who fit your defined audience. Throughout the process, data is collected to provide valuable insights for optimization and retargeting.

Do note: what happens behind the scenes is much more complex — requiring multiple integrations, vendors, and moving parts. For that reason, many advertisers use managed services for OTT/CTV advertising. Not only do managed services help simplify the process, partners like Strategus offer more sophisticated audience targeting capabilities across fragmented OTT platforms.

What Targeting Strategies Can Be Used to Locate Your Audience?

OTT targeting spans a wide range of options and data sources. We recommend layering different targeting tactics to create highly customized audiences to maximize campaign impact.

Here's a breakdown of OTT targeting capabilities, from basic to advanced:

Third-Party Data Targeting

Third-party data is information acquired from external providers that offers a broad market view. It's helpful for identifying new audience segments and enhancing existing strategies.

Some of the OTT targeting tactics that we offer at Strategus using insight from data management platforms (DMPs) include:

1. Demographic Targeting

Target viewers based on age, gender, income, and other demographic data. This is a rudimentary tactic best used in conjunction with other targeting options. 

2. Geotargeting

Pinpoint viewers by location, including state, DMA, zip code, or proximity to a physical store. This helps focus reach and minimize wasted ad spend.

3. Behavioral Insight

Use data about online browsing, shopping habits, and other activities to serve relevant ads aligned with user interests. 

4. Purchase History

Target customers based on past purchases, thereby reaching frequent buyers, high-value customers, or those interested in specific product categories. 

5. Social Media Activity

Integrate Integrate social media data to connect with audiences based on their online interactions, preferences, and engagement with specific brands or influencers.

Example:  A home services company could target users who’ve engaged with posts from a home improvement account.

6. Intent-Based Targeting

Use real-time signals that indicate a user's intent to purchase to engage viewers at crucial decision-making moments.

Second-Party and Retail Data Targeting

Second-party data comes next. Information that’s gathered internally by one organization and shared with another closely related company falls within this category. Often, this is sourced from publishers, partners within the same supply chain, or through mergers and acquisitions. For instance, data from publishers like Hulu about their viewers' preferences and engagement can be considered second-party data.

Another common type of second party data is retail media — which is customer information gathered by major retailers like Amazon and Walmart. This data is highly valuable due to its accuracy and direct connection to consumer behavior.

Here’s a look at the audience targeting tactics we offer at Strategus using this type of insight.

7. Contextual Targeting

Serve ads aligned with the content users are currently watching, creating a more seamless and relevant ad experiences. 

8. Amazon Shopper Intent Targeting

Use Amazon's vast customer data to target viewers based on shopping activity across Amazon.com, Whole Foods, and Kindle — as well as viewing activity on Prime Video. This can be used to reach specific audiences with precision through our close partnership.

9. Lapsed Customer Targeting 

Win back previous customers by re-engaging them with personalized offers on CTV. For instance, a consumer packaged goods (CPG) brand could run ads to loyal customers who haven’t made a purchase in a long time.

10. Conquesting Competitor’s Customers

Target customers who recently purchased from competitors and present them with compelling reasons to switch to your brand. An example of this would be a pet care brand offering their product at a discounted rate.

11.  Category Targeting

Focus campaigns on consumers actively browsing or purchasing within your product category, keeping your brand top-of-mind during their purchase journey. This works great for companies with distinct audiences, such as a tourism company targeting outdoor enthusiasts who’ve been researching camping gear.

First-Party Data Targeting

Finally, we have first-party data, which is sourced directly from a company’s own customers and prospects. This is highly valuable for personalized targeting, and can be combined with third- and second-party sources to create custom audiences.

12.  Website Retargeting

Serve OTT ads to users who have previously visited your company’s website, encouraging them to return or visit a physical location.

13.  Current Customer Whitelisting

Deliver personalized ads to existing customers to enhance engagement and loyalty.

14.  Existing Customer Blacklisting

Exclude existing customers from acquisition campaigns to avoid wasting ad spend on irrelevant impressions.

15.  Custom Segmentation 

Segment audiences based on CRM data, purchase history, and website interactions to deliver highly tailored messaging.

Custom Targeting Tactics From Strategus

At Strategus, we've developed proprietary targeting methods to maximize campaign performance. These often combine insights from disparate data sources to take OTT advertising precision and relevance to the next level.

16.  Look-Alike Modeling

Create audiences that mirror your best customers based on data from existing customers, website visitors, and CRM files.

17.  Location-Based Retargeting

Retarget users who have visited physical stores or conquest foot traffic from competitor locations.

18.  Smart Audience Contextual Targeting 

Combine contextual and behavioral targeting to reach viewers who have engaged with online content relevant to a given brand.

19.   Linear TV Extension

Extend the reach and frequency of linear TV campaigns by targeting households exposed to a brand’s TV ads on OTT channels.

20.  Automatic Content Recognition (ACR) Targeting

Target households based on their TV viewing habits and interests captured through ACR data.

Advanced Tactics to Drive OTT Results

21.  Dynamic Creative Optimization

Tailor your ads to each audience segment with unique visuals and messaging, dynamically adjusting the creative based on viewer data.

Learn more about dynamic and interactive CTV advertising formats →

22.  Cross-Device Retargeting

Re-engage viewers exposed to a CTV ad across other devices and platforms, creating a cohesive omnichannel experience that drives conversions.

Meet Your Customers Where They Are With Strategus

At Strategus, we go beyond basic OTT targeting to help brands and agencies reach their ideal customer with precision and scale. We combine our vast ecosystem of data providers, advanced targeting tactics, and hands-on campaign execution to ensure every impression counts.

Schedule a meeting with one of our experts today to discover how we can elevate your OTT advertising strategy.