What It Is
OTT, short for over-the-top, refers to video content delivered over the internet rather than through cable or broadcast. Connected TV, or CTV, refers to the actual devices that play OTT content: smart TVs, Roku boxes, Apple TVs, gaming consoles. The two terms are often used interchangeably to describe the streaming video advertising environment.
OTT and CTV ad inventory includes services like Hulu, Roku, Pluto TV, Tubi, YouTube TV, and the ad-supported tiers of Netflix and Disney Plus. These placements are bought programmatically, with audience targeting precise enough to reach specific households inside a defined geographic radius.
Why It Matters
Streaming now accounts for more U.S. TV viewing time than cable, around 47% of total TV use versus about 20% for cable as of late 2025 (Nielsen). For local service businesses, OTT delivers the same kind of brand-building exposure that broadcast TV used to deliver, at a fraction of the cost and with targeting tight enough to skip households outside your service area. It is the most underused channel in most local advertising budgets.
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