OTT (Over-the-Top) Advertising Guide

What is OTT?

OTT (Over-the-Top) refers to video content delivered directly to viewers via the internet, bypassing traditional broadcast and cable networks. In the UK, OTT platforms include Netflix, NOW TV, Amazon Prime Video, Disney+, and ITVX. Unlike linear TV, OTT allows advertisers to reach audiences on-demand with greater targeting precision and measurable results.

OTT advertising has grown significantly in the UK market. Platforms now offer commercial tiers, with Netflix introducing ad-supported subscriptions in 2022 and most major streamers following suit. This presents a valuable opportunity for UK marketers to reach cord-cutters and streaming-first audiences.

Why OTT Matters for UK Marketers

OTT consumption in the UK has surpassed traditional TV viewing for many demographics. Key benefits include:

• Precise Targeting: Reach audiences by viewing behaviour, location, device, and interests
• Better ROI: Pay for impressions with transparent, measurable metrics
• Reduced Ad Waste: Avoid reaching disinterested audiences like you might with linear TV
• Flexibility: Run campaigns at scale or test with smaller budgets
• Brand Safety: Choose which content your ads appear alongside

Getting Started with OTT Advertising

Step 1: Define Your Campaign Objectives

Before approaching any platform, clarify what you want to achieve:

• Brand Awareness: Reach large audiences with video ads across premium content
• Lead Generation: Drive sign-ups or form completions via targeted placements
• Performance Marketing: Drive conversions with trackable, data-driven campaigns
• Product Launches: Build buzz around new offerings with high-impact video

Example: A UK fintech company launching a savings app might use OTT to reach affluent 25-45 year-olds watching financial documentaries or business content on Netflix or NOW TV.

Step 2: Select Your Platforms

Choose platforms aligned with your target audience:

• Netflix: Largest UK subscriber base, premium audiences, limited ad inventory
• NOW TV: Sky's streaming service, strong sports and entertainment content, good ad inventory
• Amazon Prime Video: Built-in e-commerce linkage, broad demographics, growing ad network
• ITVX: Free and premium tiers, strong British content, national reach
• YouTube: Technically AVOD (advertising-supported video-on-demand), massive reach
• Disney+: Strong with families and younger audiences, expanding ad options

Step 3: Understand Audience Targeting Options

Most OTT platforms and programmatic networks offer:

• Contextual Targeting: Target based on content viewed (e.g., ads for running shoes on fitness shows)
• Demographic Targeting: Age, gender, location (postcode-level precision in the UK)
• Interest-Based Targeting: Inferred from viewing behaviour
• Device Targeting: Smart TV, tablet, mobile (useful for multi-screen strategies)
• First-Party Data: Upload customer lists for lookalike audiences or retargeting

Example: A luxury fashion brand might target women aged 30-55 in London and the South East, watching premium drama content, during evening hours on smart TVs.

Setting Up Your First Campaign

Budget and Pricing

OTT typically uses CPM (Cost Per Thousand Impressions) or CPCV (Cost Per Completed View) pricing:

• CPM rates: £5-£25+ depending on platform, audience targeting, and content premium
• Entry budget: Start with £5,000-£10,000 monthly to test and gather performance data
• Scaling: Once you've identified winning placements, increase budget incrementally

Direct platform deals often provide better rates than programmatic, but require more negotiation.

Creative Requirements

OTT platforms have specific technical and format requirements:

• Video Duration: 15, 30, or 60-second formats (15s increasingly popular for mobile)
• Aspect Ratios: 16:9 for standard, 9:16 for mobile, 1:1 for tablet
• File Format: MP4 or MOV, H.264 codec
• Quality: 1080p minimum, 4K preferred for premium placements
• Audio: Stereo or 5.1 Dolby Digital, clearly audible (many viewers watch muted)
• Call-to-Action: Clear, concise CTAs with visible on-screen elements

Pro Tip: Create native captions in all video assets. Many OTT viewers watch on mute, especially during commutes.

Measurement and Attribution

Set up tracking before your campaign goes live:

1. Define KPIs: Impressions, view completion rate, clicks, conversions, ROAS
2. Use UTM Parameters: Track traffic from OTT to your website with unique parameters
3. Implement Conversion Pixels: Set up tracking on your website to measure campaign performance
4. Enable Cross-Device Tracking: Understand how viewers interact across devices
5. Platform Reporting: Review built-in analytics for completion rates, viewability, and audience insights

Most platforms provide basic reporting, but third-party measurement partners (like Nielsen, Comscore) offer deeper attribution for premium campaigns.

Best Practices and Tips

Content Alignment

Match your ad creative to the platform's content vibe. A humorous ad might work on comedy content but feel jarring during a documentary. Consider platform-specific audiences: Netflix entertainment fans differ from NOW TV sports viewers.

Frequency Capping

Set limits on how many times the same user sees your ad (typically 3-5 times per month). Over-exposure damages brand perception and wastes budget.

Test and Optimize

Run A/B tests on: - Different creatives (15s vs. 30s) - Audience segments - Device types - Time-of-day targeting - Placements (specific shows vs. broader categories)

Allocate 10-15% of budget to testing new variables.

Mobile-First Strategy

While smart TV viewing is significant, many UK viewers watch OTT on mobile, particularly younger demographics. Ensure all creatives work on small screens with readable text and clear CTAs.

Seasonal Planning

Plan campaigns around major content releases and viewing peaks. November-December sees increased streaming usage; summer viewing drops slightly. Align with your product cycles and customer behaviour.

Common Challenges and Solutions

Challenge: Low completion rates Solution: Ensure strong creative hooks in the first 3 seconds. Test shorter formats. Improve audience targeting to reach more engaged viewers.

Challenge: High CPMs eating into budget Solution: Negotiate direct deals with platforms. Expand targeting to broader audiences. Try newer platforms with lower competition for inventory.

Challenge: Attribution difficulties Solution: Use platform-provided tracking. Implement UTM parameters consistently. Consider view-through conversion windows of 7-30 days for awareness campaigns.

Conclusion

OTT advertising is now essential for UK media buyers targeting cord-cutters and streaming audiences. Start with clear objectives, choose platforms matching your audience, and invest in quality creative. Test, measure, and optimize based on performance data. As streaming continues to grow, OTT expertise will become increasingly valuable for modern marketing teams.