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What Is OTT Advertising and Why It Matters in 2024

Key Takeaway: As viewers continue to move from cable to streaming, OTT advertising — video ads delivered over the open internet — has become one of the fastest-growing channels in digital marketing. In 2024, OTT matters more than ever because it bridges the best of two worlds: TV-scale storytelling and digital-style precision.

What Exactly Is OTT?

“OTT” stands for Over-The-Top, describing video content delivered over the internet instead of via traditional broadcast or cable systems. It includes streaming services like Netflix, Hulu, Disney+, Amazon Prime Video, and free ad-supported platforms such as Tubi, Pluto TV, and Roku Channel.

Viewers can watch OTT content on connected TVs, mobile devices, tablets, or desktops — anywhere with an internet connection. This flexibility is what makes OTT a cornerstone of modern video consumption.

How OTT Advertising Works

OTT ads appear before, during, or after streamed video content — similar to traditional TV ads, but with enhanced targeting and measurement. They’re typically delivered through programmatic platforms (like Starti), allowing advertisers to buy inventory in real time and optimize based on performance metrics such as impressions, completion rate, post-view website visits or app installs, and incremental reach beyond traditional TV.

Unlike linear TV, OTT advertising is data-driven and outcome-oriented — advertisers can see exactly which audiences engaged and what actions followed.

OTT vs. CTV: What’s the Difference?

While often used interchangeably, OTT and CTV aren’t identical. OTT describes how the content is delivered — via the internet. CTV (Connected TV) describes where it’s viewed — on a smart TV or connected device.

Think of CTV as a subset of OTT: every CTV ad is OTT, but not every OTT ad runs on a TV screen — some appear on mobile or desktop streaming apps.

Why OTT Advertising Matters Now

  • Audiences Are Already There

By 2024, more than 80% of U.S. households stream video content. OTT platforms dominate daily viewing time across every generation, from Gen Z to Boomers. This shift means advertisers must follow the audience — and OTT is where the attention lives.

  • TV Reach + Digital Precision

OTT combines the storytelling power of television with the targeting precision of digital. Advertisers can target by demographics, behavior, device type, location, or even past purchase intent — something impossible in linear TV.

  • Better Measurement and Attribution

With the rise of cross-device tracking and AI-powered attribution, brands can finally measure the impact of OTT ads — not just in views, but in real outcomes like installs, sign-ups, or purchases.

The Opportunity for Performance-Driven Brands

OTT is no longer just for brand awareness. Performance marketers are now leveraging OTT for measurable conversions and retargeting, using AI-optimized buying models like CPA (Cost per Action) and CPI (Cost per Install).

In 2024, outcome-based OTT campaigns are expected to dominate growth strategies, bridging the gap between upper-funnel storytelling and lower-funnel performance.

Why Starti Believes in OTT

At Starti, we see OTT as the evolution of performance media — a channel that turns attention into measurable action. Our AI-powered CTV DSP helps brands reach streaming audiences at scale, optimize creative and targeting in real time, and attribute results across screens and platforms.

OTT isn’t just the future of TV — it’s the future of performance advertising.

FAQs

What is OTT advertising?

OTT (Over-The-Top) advertising delivers video ads through internet-based streaming services like Netflix, Hulu, or Tubi, bypassing traditional cable. Ads appear before, during, or after content and reach audiences across devices—smart TVs, phones, and desktops—using precise, data-driven targeting.

How does OTT advertising work?

OTT ads are bought programmatically, allowing real-time optimization across streaming platforms. Advertisers measure results by impressions, completion rates, and post-view actions such as app installs or purchases. Platforms like Starti use AI tools to link ad exposure with measurable performance outcomes.

What’s the difference between OTT and CTV?

OTT describes how content is streamed—via the internet—across any device. CTV (Connected TV) refers to where it’s watched—on smart TVs or connected devices. In essence, every CTV ad is OTT, but not all OTT ads appear on TV screens.

Why is OTT advertising important in 2024?

With over 80% of U.S. households streaming video, OTT is where audiences spend time. It combines TV’s storytelling power with digital precision, enabling granular targeting, improved measurement, and performance-focused attribution that drives real-world results.

How does OTT empower performance-driven marketers?

OTT transforms storytelling into measurable growth. AI-driven DSPs like Starti help brands track conversions across screens and optimize toward cost-per-action goals—bridging brand awareness with direct-response performance to maximize ROI.