Contents
Key takeaways
- OTT is video delivered over the internet rather than through cable or satellite. CTV is the subset watched on a television set.
- The buying case in Asia is attention: viewers are seated, the screen is large, and the ad usually cannot be skipped.
- OTT is measured wrongly more often than any other video format. Completion rate is the outcome, not click-through rate.
OTT sits awkwardly between television and digital: it is bought like digital, watched like television, and frequently measured like neither. This guide covers what the term actually means, how it differs from CTV, why it behaves differently from other video inventory in Asia, and how to judge whether a campaign worked.
What is OTT advertising?
OTT stands for over-the-top: video content delivered directly over the internet, bypassing cable and satellite operators. OTT advertising is the in-stream advertising shown inside that content — before, during or after a programme on an ad-supported streaming service.
The name describes the delivery route, not the device or the content. That is why it covers a phone, a laptop and a television set equally, which is the source of most of the confusion around the term.
What is the difference between OTT and CTV?
CTV is a subset of OTT. Connected TV means the content is watched on a television set — a smart TV, or a set connected through a streaming stick or console. All CTV is OTT. Most OTT viewing in Asia is not CTV, because a large share of it happens on phones.
| OTT | CTV | Online video | |
|---|---|---|---|
| Delivery | Internet | Internet | Internet |
| Device | Any | Television set only | Any |
| Content | Programmes and films | Programmes and films | Anything, including short form |
| Skippable | Usually not | Usually not | Often |
The distinction matters commercially because the two are priced differently and reach different people. Buying OTT in Asia and assuming a living-room audience will misread both the reach and the creative requirements.
Why does OTT matter for advertisers in Asia?
Because it combines the attention conditions of television with the targeting and measurement of digital. Viewers choose the programme and settle in, the ad load is light compared with broadcast, and the ad generally cannot be skipped. That produces completion rates video formats elsewhere on the open web rarely reach.
The regional condition that makes it work is the willingness to accept advertising in exchange for free content. Ad-supported tiers carry a large share of streaming audiences across Southeast Asia, which keeps the addressable audience wide rather than niche.
How is OTT bought?
Either on CPM, paying for impressions, or on CPCV, paying only for completed views. CPCV shifts the delivery risk to the seller and suits campaigns where the message needs to be seen in full. CPM is usually cheaper per impression and suits reach-led buys where partial exposure still has value.
- CPM — pay per thousand impressions. Better for reach and frequency planning.
- CPCV — pay per completed view. Better when comprehension of the full message matters.
- Inventory access — premium OTT inventory is often sold through direct or managed arrangements rather than the open exchange.
How should OTT campaigns be measured?
On completion rate and incremental reach rather than clicks. There is usually nothing to click on a television screen, and even on mobile OTT the viewer is watching a programme rather than browsing. Judged on click-through rate, OTT will look like a failure even when it did the job it was bought for.
| Judge it on | Do not judge it on |
|---|---|
| Completion rate | Click-through rate alone |
| Incremental reach over other video | Last-click conversions on their own |
| Frequency distribution | Raw impression count alone |
| Brand lift, where measurable | Cost per click |
The broader point about video metrics applies here too: playback and attention are different things, and the gap can be very large. See the 3% problem.
What creative works on OTT?
Television creative, with one adjustment. The viewer is watching rather than scrolling, so the aggressive front-loading that short-form demands is unnecessary. What does carry over from digital is that a meaningful share of Asian OTT viewing happens on phones, so text must remain legible at small size.
Horizontal remains correct for OTT and CTV. Reformatting a vertical social asset for this inventory wastes the screen and signals that the ad was made for somewhere else.
Frequently asked questions
Is YouTube considered OTT?
Partly. YouTube is delivered over the internet, so it meets the technical definition, and YouTube on a television set is counted as CTV. In media planning it is usually treated as its own channel because its content, ad formats and skippability differ from programme-based streaming services.
Can OTT ads be skipped?
Usually not. Most ad-supported streaming services run non-skippable in-stream ads, which is the main reason completion rates are high relative to other online video. That also makes creative quality more consequential, since the viewer cannot opt out.
Is OTT expensive compared with online video?
Higher on CPM, and often competitive on cost per completed view. Comparing the two on CPM alone flatters cheaper inventory where a large share of impressions are never watched to completion.
Does OTT reach a different audience from television?
In many Asian markets, substantially. A significant portion of streaming audiences have limited broadcast television exposure, so OTT provides incremental reach rather than duplicating a television buy. Measure it as incremental reach rather than as a television substitute.
OTT across Southeast Asia. FreakOut OTT delivers video advertising across premium streaming inventory, on CPM and CPCV. Talk to your local team.
