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Article

What Is OTT Advertising? CTV, Streaming TV, and How It Works

OTT (over-the-top) advertising means video ads delivered over the internet through streaming services like Hulu, Max, and Peacock, while CTV (connected TV) refers to those ads running on an internet-connected television screen. Together they let you run TV-quality video to targeted audiences and measure the results, which traditional TV could not do. US connected-TV ad spend reached about $29 billion in 2024, and it is bought programmatically, so regional and local businesses can run it.

By Roger Cooney 4 min read Updated Jun 12, 2026

Your customers cancelled cable and moved to streaming, and the TV advertising playbook went with them. The good news is that the living-room screen is still there, your ad can still run on it, and now you can target who sees it and measure what it did, things old television never offered. That is OTT and CTV advertising. The terms get used loosely and the acronyms multiply, so let us make them simple and show you why this is one of the fastest-growing places to put an ad budget.

The screen moved to streaming
~$29BUS connected-TV ad spend in 2024eMarketer, 2024
~$42BProjected US CTV ad spend by 2027eMarketer, 2024
~90%of US households now use a connected-TV deviceStatista, 2025
Sources: eMarketer / Insider Intelligence, 2024; Statista, 2025.

What is OTT advertising? What is CTV? What is the difference?

OTT (over-the-top) means video delivered over the internet, "over the top" of traditional cable or satellite. Think Hulu, Max, Peacock, Tubi: streaming content you watch without a cable box. CTV (connected TV) refers specifically to the device, an internet-connected television (a smart TV, or a TV with a Roku, Fire Stick, Apple TV, or game console). So OTT is the what (streaming video), and CTV is the where (the actual TV screen). An OTT ad watched on a phone is still OTT; the same ad on a smart TV is CTV. In practice, marketers use the terms together because the goal is usually the same: a TV-quality ad, delivered through streaming, often on the big screen.

Why streaming ads beat old TV advertising

Traditional TV sold you a guess: buy this time slot on this network and hope the right people are watching. Streaming changed three things:

  • Targeting. You can reach defined audiences and households, not just whoever happens to have the channel on.
  • Measurement. You can connect exposure to site visits and outcomes instead of relying on rough ratings.
  • Access. You no longer need a national-TV-sized budget to get on the screen. Streaming ads are bought programmatically, so a regional or even local business can run them.

What you can do with OTT and CTV

Run a TV-quality video ad to a specific audience in a specific area; retarget people who visited your site with a living-room-screen ad; build awareness for a launch; or stay top of mind in a market while your search and social capture the demand it creates. Because it is bought programmatically, you can combine it with the rest of your media and measure it as part of one plan, not as an island.

The honest caveats

OTT and CTV are powerful but not magic. The ecosystem is fragmented across many apps and devices, which makes frequency capping (not showing the same person your ad twenty times) and clean measurement genuinely harder than they sound. Inventory quality and transparency vary. And "TV-level branding" works best as part of a plan that covers the whole funnel, not as a standalone lead machine. The fixes are the same as all good programmatic: vetted inventory, careful frequency management, honest measurement, and a clear role in the funnel.

How MoonSauce runs OTT and CTV

We treat streaming as one part of a measured plan: tight audience targeting, vetted inventory, sane frequency caps, and reporting that ties the big-screen ad to real outcomes, not just impressions. We will tell you honestly whether your budget and funnel are ready for it, because TV-style reach pays off when there is a demand-capture engine underneath it to catch what it creates.

Done for youOTT and CTV advertising on real living-room screens, measuredSee OTT & CTV at MoonSauce
Answers

Frequently asked

What is OTT advertising?
OTT (over-the-top) advertising is video advertising delivered over the internet through streaming services like Hulu, Max, Peacock, and Tubi, "over the top" of traditional cable or satellite. Unlike old TV ads, OTT ads can be targeted to specific audiences and measured against real outcomes, and they can be watched on TVs, phones, tablets, or computers.
What is the difference between OTT and CTV?
OTT is the content delivery method (streaming video over the internet); CTV (connected TV) is the device (an internet-connected television, such as a smart TV or one with a Roku, Fire Stick, or Apple TV). An OTT ad seen on a phone is still OTT; the same ad on a smart TV is CTV. Marketers often use the terms together because the goal is usually a TV-quality ad delivered via streaming.
How is streaming TV advertising different from traditional TV?
Three ways: you can target defined audiences and households instead of buying a broad time slot, you can measure exposure against site visits and outcomes instead of relying on rough ratings, and you do not need a national-TV budget because the ads are bought programmatically. That makes the living-room screen accessible to regional and even local advertisers.
How much does CTV advertising cost?
It varies by audience, inventory, and market, and is bought programmatically rather than as a fixed network buy, so it scales to regional and local budgets rather than requiring national-TV spend. Because pricing depends heavily on targeting and inventory quality, the practical approach is to start with a defined audience and budget and optimize, rather than expecting a single sticker price.
Is OTT/CTV advertising worth it for my business?
It can be, when it has a role in a plan that covers the whole funnel. OTT and CTV are strong for building awareness and reaching the right households on the big screen, but they work best with search, social, and a good website underneath them to capture the demand they create. As a standalone lead machine they tend to disappoint; as part of a measured plan they are increasingly effective.
Can small or local businesses run CTV ads?
Yes. Because CTV and OTT ads are bought programmatically rather than as large network buys, a regional or local business can run targeted streaming ads to its own area without a national-TV budget. The key is tight audience and geographic targeting plus honest measurement so the spend ties to real outcomes.
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