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How Does OTT Advertising Work?

Unlike cable, which delivers content through a physical connection, OTT uses the internet to stream entertainment. This digital component changes the way that ads are purchased, delivered, and measured.

When placing ads within OTT content, marketers gain access to a ton of data about the viewers. CTV ads are often purchased programmatically, enabling advertisers to target different ads to different households based on this data. This makes commercials delivered in OTT environments more relevant, which translates to a higher return on investment (ROI).

The benefits don’t end there, though. OTT advertising also opens doors to cutting-edge advertising techniques. Retargeting strategies, real-time measurement, holistic attribution solutions, and ongoing optimization all become possible when buying media in this space.

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Strategus Is a Top OTT Agency

OTT advertising is vital to brand building. Unfortunately, though, it’s easier said than done. Brands and agencies need dedicated resources, access to cross-platform inventory, integrations with data sources, and more to make the most out of their investment.

At Strategus, we deliver all of that and more. 

Our managed service approach combines industry-leading technology with personalized execution to streamline the complexities of OTT. 

We get to know you, your brand, your goals, and your audience. From there, we provide all the tools needed to quantify ROI and understand your customers’ journey. This includes advanced targeting capabilities, a 24/7 dashboard, and the most sophisticated OTT attribution solutions around.

Once we understand your business needs, we develop and execute a full-funnel OTT strategy that combines big-screen ads with retargeting across the programmatic ecosystem. This is all backed by reporting, continuous optimization, and instant access to our team of experts as your needs evolve.

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Managed Services OTT Agency vs. Self-Serve OTT

Marketers have a choice when approaching OTT: Take it in-house with a self-serve demand-side platform (DSP) or partner with a managed service OTT agency like Strategus. Here’s how the two compare.

Managed Services
From Strategus

  • tick_icon Our OTT experts partner with you to design and execute customized campaigns.
  • tick_icon We assist with training your staff and pitching to clients, while also providing access to high-quality inventory.
  • tick_icon Instant access to our dedicated team makes it easy to scale as your OTT needs grow.
  • tick_icon We monitor and optimize in-flight campaigns to ensure success.
  • tick_icon You gain access to our 24/7 reporting dashboard, as well as custom reports for you or your clients.

Self-Service DSP

  • Your in-house team determines strategy and campaign design, a full-time job in its own right.
  • Inventory is limited in the initial media purchasing stages, and staff knowledge about OTT best practices may be lacking
  • Minimum fees, the compounding costs of add-ons, and investment in training internal staff all drive up CPM.
  • Your team is tasked with monitoring performance and adapting campaigns accordingly, which often requires juggling multiple dashboards and reporting systems.
Decision Tree: Managed Services vs. Self Serve

OTT Agency vs. CTV Agency

To throw another acronym in the mix, CTV (short for connected TV) describes the devices used to access OTT content. Smart TVs, Roku boxes, and gaming consoles all fall in the category of CTV.

CTV and OTT are often used interchangeably. However, a key distinction exists:

  • OTT refers to the delivery method (streaming video over the internet).
  • CTV refers to the devices used to access OTT content (smart TVs, streaming devices, etc.).

Because we focus on the premium inventory that’s streamed on connected TVs (rather than UGC content streamed on mobile devices), it’s more accurate to call Strategus a CTV agency. That said, there is quite a bit of overlap between the two terms. Here’s a break down.

 


Over-the-Top (OTT)


Connected TV (CTV)

Definition


Video streaming content delivered over the internet.


Devices that connect to the internet to access streaming content.

Access Devices


Smartphones, tablets, computers, gaming consoles.


Smart TVs, set-top boxes, gaming consoles.

Content Sources


Streaming platforms like Netflix, Hulu, Amazon Prime Video, as well as UGC platforms like YouTube.


Premium OTT streaming platforms accessed on TV screens (rather than laptops, mobile phones, etc.).
Advertising Format


Advertisements displayed within streaming content.


Advertisements served on TV screens during streaming content.

Targeting Options


Demographics, interests, viewing habits.


Similar to OTT but with additional insight based on TV-viewing behaviors.

Campaign Complexity


Varied due to diverse platforms and devices.


Complex, requiring expertise in TV advertising and digital marketing.

Example


Netflix viewed on a mobile phone.


The Roku channel viewed on a Roku TV.

When looking for a CTV/OTT agency, you’ll want to make sure that the inventory and screens used to access the content align with your goals. After all, the YouTube ads that play while users are searching for music videos are a whole lot different from the commercials that air during live sporting events consumed on the living room TV. 

At Strategus, we ensure that all CTV inventory is non-skippable, professionally produced, and long-form. Our vast library of premium inventory spans 200+ publishers that dominate the media landscape and more than 843 individual deal IDs.

CTV vs. OTT Deep Dive →

 

Types of OTT Platforms

 The OTT model has grown into a versatile ecosystem that caters to every viewing preference and price point. 

 Many services like YouTube TV and Tubi blur the lines between traditional TV and streaming, offering linear channels alongside on-demand libraries. What’s more, free OTT platforms like the Roku Channel deliver linear content to viewers without even requiring a login.

Here’s a look at the different types of OTT platforms.

Subscription-Based Video on Demand (SVOD)

SVOD Platform examples

Streaming platforms that provide on-demand ad-free content to users for a recurring fee fall in the SVOD category. These services have been the standard for OTT since Netflix first launched direct-to-consumer streaming, but that’s beginning to change.

 

Popular SVOD platforms include:

  • Netflix
  • Amazon Prime
  • Disney+ 
  • HBO Max

Learn More → 

Ad-Based Video on
Demand (AVOD)

AVOD Platform examples

AVOD services rely on commercials and other advertising techniques to generate revenue. AVOD is the dominant model across the Asia-Pacific region and is steadily growing in the U.S. and Europe.

Popular AVOD platforms include:

  • YouTube
  • Tubi

Learn More →

Hybrid Video
on Demand (HVOD)

HVOD Platform examples

Ad-supported subscription services that generate revenue through a mix of commercials and subscription plans fall in the HVOD category. These platforms appeal to viewers who want premium content but can’t justify the high-end price tag. All SVOD platforms today offer an HVOD tier.

Popular HVOD platforms include:

  • Netflix
  • Amazon Prime
  • Disney+ 
  • HBO Max
  • Paramount+

Learn More →

 

Free Ad-Supported Streaming TV (FAST)

FAST Platform examples

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, old movies, platform-specific content, and local news. 

 

Many smart TVs (like Roku) have default FAST apps (like the Roku Channel) within the interface, giving viewers a free and easy option for lean-back viewing out of the box.

 

Popular FAST platforms include:

  • Pluto TV
  • Tubi
  • The Roku Channel
  • Xumo
  • Amazon Freevee

Learn More → 

Virtual Multichannel Video Programming Distributors (VMVPD)

vmpvd Platform examples

vMVPD services deliver linear TV channels (with ads) to paying subscribers. Households looking to cut the cord without losing access to premium live sports content and must-watch shows from popular cable networks are the target market for these services.

 

Popular vMVPD platforms include:

  • YouTube TV
  • Hulu Live
  • Sling TV
  • FuboTV
  • Philo
  • DirecTV Stream

Learn More → 

Big Screen Focus

Our CTV-first strategy captures your audience’s attention on the largest screen in the household. Sight, sound, and motion bring your brand to life in a way that no other marketing channel can recreate.

CTV Cross-Device Retargeting

We keep your audience connected across every screen by re-engaging them with follow-up ads across other devices, reinforcing your message and driving conversions.

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Data-Driven
Strategies

Our ecosystem of 200+ data providers ensures targeting and attribution like never before, enabling us to develop informed strategies and adapt on the fly based on what the data reveals.

Multi-Publisher Control to
Manage Frequency

As a vendor-agnostic partner, we make it easy to reach your audience no matter what they’re tuning into — while also capping frequency and conducting measurements across the entire OTT ecosystem.

What OTT Capabilities Do We Offer?

At Strategus, we take care of everything that goes into strategizing, executing, and measuring sophisticated OTT campaigns — making the most out of this data-rich environment.

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Programmatic CTV Services

We integrate with countless publishers and marketplaces, giving you that agility to reach viewers wherever they are with data-driven strategies.

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Prime Audience Targeting

We take targeting beyond standard demographics like location and income to narrow viewers down based on shopping habits, hobbies, and more.

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Premium Inventory

Our vast library of brand-safe inventory ensures that your ads play on the most important screen in the household: the living room TV.

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Customized Attribution

With an evolving roster of attribution solutions customized to your goals, we illustrate the impact of your ads and how your viewers progress through the conversion funnel. 

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CTV Cross-Device Retargeting

Using cross-device retargeting, we build awareness through CTV and then drive conversions across supplementary channels like display ads and streaming audio. 

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24/7 Reporting

Our reporting dashboard — with flexible APIs and custom feeds — provides real-time insight into engagement and conversions by audience segment, ROI tracking, and more.

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Strategus Is Your Go-To OTT Agency

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Strategus has been an excellent partner. Their outstanding customer service and communication made working with them a breeze. They constantly delivered what we needed (and more) with thoughtfulness and efficiency, making them a valuable partner in our client’s digital media endeavors.

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Marissa Spainhour

Sterling Rice Group
Digital Associate Media Director
Quote

Working with Strategus has been a great decision. Their strategic insights and innovative approach have truly transformed marketing efforts, for our clients. From developing targeted campaigns to enhancing our online presence, they have consistently exceeded expectations. Their team is not only highly skilled but also incredibly responsive and collaborative. I couldn't be happier with the results and highly recommend them to anyone seeking a trusted marketing partner.

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Ashley Sterle

Paradise Advertising and Marketing
Senior Media Planner
Quote

Partnering with Strategus has been a seamless experience. Their tailored proposal showcased a deep understanding of our destination and what we hope to accomplish during the campaign. They provided insight into what would best work for the client based on the goals and strategy we presented to them and had the proposal delivered within our requested deadline.

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Natalie Henton

Paradise Advertising and Marketing
Media Planner

Get Started
With Strategus

We aren’t just another agency. We're OTT experts with a proven track record of success. As the first agency to run a programmatic OTT ad in 2015, we continue to push the boundaries by specializing in all things connected TV. 

With Strategus as your partner, you get the inventory, data integration, and expertise required to make the most out of OTT advertising. We take a hand-on approach that’s focused on results — getting to know your business and your goals.

Don’t settle for generalist agencies that are stretched too thin. Learn how you can deliver high-performance OTT campaigns. Reach out today →

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