TV Advertising Goes ‘Over the Top’

By Dan Evans, AVB Marketing

Over the Top, or OTT, is a reference to how web-based video is delivered — without a set-top box. Streaming services such as Netflix, Hulu, Amazon, Roku, Vudu and others now deliver video content into a majority of the homes in the U.S.

What began as a way for consumers to watch a movie studio’s back catalog is quickly becoming the way vast audiences of consumers choose to stream their TV content … and even live programming! As these viewers (our customers) “cut the cord” and leave cable, satellite and other traditional pay TV viewing, it becomes vital for us to leverage OTT advertising to keep our relevant messages in front of our most relevant customers.

Let’s consider some research to help us understand how important this avenue of advertising has become:

  • OTT Viewers. Recent studies show that by end of 2019 there were over 205 million OTT users in the U.S., compared to 188 million traditional pay TV users. (Source: eMarketer)
  • U.S. Households. Sixty-four million U.S. homes use OTT, which is over half of the homes in the nation. The average home viewed 86 hours of OTT content within a month. (Source: ComScore)
  • Ad-Supported OTT. Of consumers those that use OTT, 73 percent confirm they have watched ad-supported OTT. (Source: IAB)
  • Co-Viewing Value. Ninety-three percent of the time there are multiple people in the room when viewers stream content on their connected TVs. (Source: IAB)
  • Major Impact that OTT Provides Advertisers: (Source: Magna Global)

* 19 percent higher perception that a brand is innovative

* 32 percent better perception that a brand has a unique story to tell

* 67 percent more effective at driving purchase intent per exposure

What’s more, streaming users have grown across various consumer segments over the last two years, with over 41.1 million appliance and home furnishings shoppers now streaming video in a given week. And, according to Simmons National Consumer Survey, appliance, consumer tech and home furnishings shoppers are 33 percent more likely to be motivated by video advertisements, prompting a purchase. Here’s the breakdown:

  • Major Appliances Shoppers +37 percent
  • Furniture & Mattress Shoppers +48 percent
  • ElectronicsShoppers +25 percent

The numbers don’t lie. OTT advertising is relevant today and the number of users will continue to grow. It’s estimated that six people are cutting the cord every minute! This form of advertising is an important tool for anyone’s media belt, and the program that AVB Marketing has put together for BrandSource members is second-to-none.

You may be wondering “Where can I deliver my ads?” or “How I can target customers in my markets, specifically those in the market for my products?” I’ll be discussing those OTT topics and more in future articles.

Can’t wait to learn more? Feel free to reach out to me directly at

Dan Evans is Product Manager – OTT at AVB Marketing, a unit of YSN publisher AVB Inc.