Defining OTT Services – Southern Cross Media
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Defining OTT Services

OTT Streaming Services

OTT is defined as video that is delivered over the internet independently of a traditional paid TV service, regardless of device. According to emarketer.com, they forecast that 61.7% of the US population will use OTT services this year. In contrast, connected TV refers to video watched on a TV set with internet connectivity. The video can be served by Smart TV or another device such as Blu-ray player, game console, or set-top boxes such as Roku or Google Chromecast. Connected TV refers to a device, making it a subset of OTT by these definitions.

What is OTT? Definitions for devices, content, and video
OTT and video are intertwined, yet they are not the same. OTT is a different channel through which video content is delivered to users. Video content can be viewed across any device, including computers, mobile devices, televisions, OTT devices, and more. OTT content is content that comes from an OTT content provider, such as sling TV. OTT content can be viewed on multiple devices. OTT devices are any devices that are not desktop, laptop, or mobile but are used to consume OTT content. Examples include smart TVs, Apple TVs, Chromecast, PlayStation, Xbox, Amazon Firesticks, and other streaming devices.

OTT Advertising
OTT advertising is delivered directly to viewers through streaming video services or devices, such as smart or connected TVs. This allows media companies and advertisers freedom of movement without broadcast schedules or geographic limitations. You could say that OTT advertising is reshaping the paid media landscape. OTT video stats show that viewing has gone mainstream in recent years, particularly for younger audiences who view from streaming services and OTT apps such as Netflix, Hulu, Crackle, Plex, Pluto.TV, Vevo, and more. 60% of young adults say the way they watch TV is through streaming services, such as OTT apps. In correlation, advertising spending through the OTT ad is predicted to hit $2 billion in 2020, showing that advertising on streaming services is growing swiftly.

OTT Advertising Platforms
Brands investing in OTT video use a variety of different OTT distribution channels such as TV publishers, OTT native services, streaming linear services, and OTT devices. Some of the more popular OTT channels include Roku OTT Ads, Hulu OTT Ads, and Tubi OTT Ads.
Roku is a streaming device and platform with 37 million users, and it is one of the largest. Roku is considered one of the pioneers and leaders in OTT advertising. Roku’s native ad platform offers 15 and 30-second ad spots and interactive videos, overlays, and sponsorships. Hulu is the second-largest on-demand streaming service with over 29 million viewers. Hulu has its ad platform, which includes a set of options for bidding, targeting, measuring, and other ad types. Tubi TV advertising is another primary OTT channel, with over 25 million active users and content rights that span over 250 partners. Tubi’s ads platform offers 15-30 second ad spots that are non-skippable.

The Future of OTT
OTT is here to stay as traditional TV is losing viewers, adults are using streaming apps and ad-supported OTT services like Hulu, CBS All Access, Sling, and Pluto. By adding this new channel to your media mix, you will have enveloped a fantastic opportunity to target new audiences in a more modern way, ahead of competitors who are not as ad-savvy.

Sources:
eMarketer, How Do marketers Define OTT and Connected TV?
Tapjoy.com, What is OTT?-Understanding the Modern Media Streaming Landscape
Media Shark.com, 8 Clever Over- the Top Advertising Strategies

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