What is OTT Advertising? How It Works for Lawyers

OTT = streaming over internet, any device. CTV = TV screen only. 44.8% of viewing is OTT. CPMs $20-40+. OTT reaches cord-cutters broadcast misses entirely.

You’ll hear OTT and CTV used interchangeably, but they’re not quite the same thing. Understanding the distinction helps you speak the same language as media buyers and make better decisions about where to advertise.

OTT Advertising Defined

OTT stands for “Over-The-Top,” meaning content delivered over the internet, bypassing traditional cable or satellite distribution. The “top” being bypassed is the cable box or satellite receiver.

When someone watches Hulu, Peacock, or Paramount+ through the internet instead of a cable subscription, they’re watching OTT content. When ads play during that content, that’s OTT advertising.

The key distinction from CTV: OTT refers to how content is delivered (streaming), not what device it’s viewed on. OTT includes streaming on televisions, but also on phones, tablets, and computers.

OTT BY THE NUMBERS
44.8% of all TV viewing is streaming/OTT Source: Nielsen, May 2025
$20-$40+ CPM range for premium OTT Source: Adtelligent, 2024
Any device TV, mobile, tablet, desktop Source: Industry Definition

How OTT Differs from CTV

This is where terms get confusing, so let’s clarify:

OTT (Over-The-Top): The content delivery method. Video delivered via internet, bypassing cable/satellite. Device-agnostic, works on TVs, phones, tablets, computers.

CTV (Connected TV): The device context. Specifically a television connected to the internet. Only refers to TV-screen viewing.

The relationship: CTV is a subset of OTT. All CTV is OTT (it’s streaming), but not all OTT is CTV (some is mobile/desktop).

Practical example:

  • Watching Hulu on your smart TV = OTT + CTV
  • Watching Hulu on your phone = OTT only (not CTV)
  • Watching Hulu on your laptop = OTT only (not CTV)

For law firm advertising, this distinction matters because TV-screen viewing (CTV) typically has higher attention and completion rates than mobile/desktop viewing.

Major OTT Platforms

OTT spans a wide ecosystem of streaming services. Here’s how they break down:

Premium SVOD with Ad Tiers

Subscription services that now offer ad-supported options:

  • Hulu
  • Peacock
  • Paramount+
  • Max (formerly HBO Max)
  • Netflix (ad tier launched 2022)
  • Disney+

Free Ad-Supported Streaming (FAST)

Completely free services supported entirely by advertising:

  • Tubi (Fox)
  • Pluto TV (Paramount)
  • Roku Channel
  • Amazon Freevee
  • Xumo

Virtual MVPDs

Streaming replacements for cable bundles:

  • YouTube TV
  • Sling TV
  • FuboTV
  • Hulu + Live TV

Each category offers advertising inventory, though pricing and targeting capabilities vary.

AVOD vs SVOD: Understanding the Models

You’ll encounter these terms when discussing OTT:

SVOD (Subscription Video On Demand): Pay a monthly fee, traditionally no ads. Netflix, Disney+, and HBO Max were originally pure SVOD. Many now offer cheaper ad-supported tiers.

AVOD (Ad-Supported Video On Demand): Free or cheaper access supported by advertising. Tubi, Pluto TV, and Peacock’s free tier are AVOD.

FAST (Free Ad-Supported Streaming TV): A type of AVOD that mimics linear TV with channels you can flip through. Pluto TV pioneered this model.

For advertisers, AVOD and FAST represent growing inventory pools. As SVOD services add ad tiers and cost-conscious viewers choose cheaper options, the ad-supported streaming audience expands.

OTT Advertising Costs

OTT pricing generally aligns with CTV benchmarks since premium OTT is largely viewed on TVs:

Premium AVOD (Hulu, Peacock, Paramount+): $30-$60+ CPM Programmatic OTT/CTV: $20-$40 CPM FAST and long-tail: $15-$25 CPM

The premium platforms charge more for brand-safe, high-quality content environments. FAST channels offer lower CPMs but with more varied content quality.

Why OTT Matters for Law Firms

The shift to OTT is the shift to streaming, and that shift has already happened.

As of 2025, streaming accounts for 44.8% of all TV viewing, surpassing broadcast and cable combined. This viewing is spread across OTT platforms of all types.

For law firms, OTT advertising provides:

Reach to cord-cutters: Households that have canceled cable and only stream. Broadcast doesn’t reach them. OTT does.

Cross-device capability: Reach someone on their TV at home and their phone during their commute with coordinated messaging.

Younger demographics: Streaming skews younger than broadcast. If your cases come from younger clients or their family members, OTT is essential.

Targeting: OTT platforms offer digital targeting (demographics, behaviors, interests, geography) that broadcast can’t match.

The Bottom Line

OTT advertising is video advertising delivered through internet streaming services, reaching viewers on any device. It’s the broader category that includes CTV (TV-screen streaming).

For practical purposes, most law firms buy “CTV” campaigns that focus on TV-screen inventory but may include some OTT mobile/desktop as well. The terminology matters less than the strategy: reaching streaming viewers where they watch, with targeting that broadcast can’t offer.

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