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Streaming Advertising. Understanding the Basics

Streaming Advertising. Understanding the Basics

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As streaming services become increasingly popular, streaming TV advertising has become a crucial part of any business's marketing strategy. In this post, we'll take a look at the basics of streaming advertising and how it can benefit your business.

What is Streaming Advertising?

Streaming advertising or Connected TV advertising /OTT Advertising is a form of digital advertising that allows businesses to reach consumers through streaming platforms, such as Netflix, Hulu, and YouTube. Advertisers are placing ads in streaming platforms' video content. It helps to reach viewers while they are watching video content.

Benefits of Streaming TV Advertising

Data-Driven Targeting

Streaming platforms gather detailed data on viewer behavior, preferences, demographics, and even device usage. This allows advertisers to:

  • Target specific audience segments (e.g., age, income, interest).
  • Use first-party, second-party, or third-party data integrations.
  • Retarget users across devices and platforms.

Cross-Device and Cross-Platform Reach

Streaming ads appear across different devices, for example:

  • Smart TVs (Roku, Samsung TV, Fire TV)
  • Gaming consoles (Xbox, PlayStation)

This flexibility allows brands to maintain visibility across a viewer's entire digital ecosystem.

Premium, Non-Skippable Inventory

Most CTV ad formats are:

  • Non-skippable, ensuring complete ad views.
  • Shown in brand-safe, premium environments like Hulu, Peacock, or Paramount+.
  • Often placed in long-form, professionally produced content, enhancing brand association.

High Completion and Viewability Rates

Due to TV’s sit-down effect and the non-skippable format, completion rates for CTV ads regularly exceed 90%, with strong viewability—often above 95%.

Advanced Measurement & Attribution

Advertisers can track a lot of metrics, the most important usually:

  • Unique reach and frequency
  • Incremental lift (compared to other media)
  • Conversions (site visits, app downloads, purchases)

CTV partners often integrate with attribution platforms, allowing you to measure cross-channel impact and ROI.

Flexible Buying Models

Streaming TV offers:

Creative Flexibility and Innovation

Streaming TV allows for:

  • Dynamic creative optimization: Personalizing ad creative to the viewer
  • Interactive ad formats: QR codes on TV screens, for example
  • Sequential storytelling: Serving different creatives to the same user across a funnel.

Types of Streaming Advertising

Types of Streaming Advertising by Format

In-Stream Video Ads

  • Pre-roll: Shown before the main content.
  • Mid-roll: Inserted during content breaks (like a traditional commercial).
  • Post-roll: Played after the content finishes (less common).

Interactive Video Ads

Include clickable overlays, QR codes, or end screens prompting viewers to take action.

Companion Banner Ads

  • Static or animated banners are shown alongside a streaming video (especially on desktop/mobile).
  • Often clickable and support the main video message.

Pause Ads

Displayed when a viewer pauses the video. Non-intrusive but visible. Best for increasing brand visibility without interrupting the user experience.

Overlay Ads

Semi-transparent text or image ads overlaid on streaming content. Works with minimal disruption, often used in free ad-supported apps.

Shoppable Video Ads

Integrated product listings or “Buy Now” features within the video.

Branded Content/Sponsorship

Full episodes or segments presented by a brand. May include logo placement, custom intros, or full content creation. Helps with deep brand integration, loyalty, and top-of-funnel awareness.

Types of Streaming Advertising by Buying Models

Programmatic Advertising

  • Uses automated systems to buy and place ads in real time.
  • Often includes audience targeting (behavioral, demographic, geo).
  • Available through DSPs (Demand Side Platforms)

Direct Buys (Publisher Direct)

  • Ads are purchased directly from streaming publishers like Hulu, Roku, or Peacock.
  • Typically involves fixed pricing and guaranteed placement.

Private Marketplaces (PMPs)

  • Invite-only auctions that offer access to high-quality, curated inventory.
  • Combines premium placement with programmatic buying.

Upfronts

  • Annual commitments made in advance, locking in rates and inventory. Now include both linear and streaming inventory as part of converged video deals.

Self-Serve Platforms

Tools like Hulu Ad Manager, Amazon Ads, or YouTube TV's ad platforms let businesses manage small-scale campaigns directly.

OTT vs. CTV

OTT, or "over-the-top," refers to streaming services that are delivered via the internet, such as Paramount+ or Pluto TV. These services are accessed by the viewer directly, without the need for a cable or satellite subscription.

CTV, or "connected TV," refers to streaming services that are delivered through a connected device, such as a smart TV or streaming device. These services are accessed through a device that is connected to a viewer's television, and typically require a high-speed internet connection.

The main difference between OTT and CTV is the way the content is delivered to the viewer. OTT is delivered over the Internet, while CTV is delivered through a connected device.

Read our comprehensive guide on the differences between OTT and CTV

AVOD vs. SVOD

AVOD, or "ad-supported video on demand," refers to streaming platforms that are free to use but include advertisements. Examples of AVOD platforms include YouTube and Tubi. These platforms make money by displaying ads to viewers while they watch content. SVOD, or "subscription-based video on demand," refers to streaming platforms that require a monthly or annual subscription fee and do not include advertisements. Examples of SVOD platforms include Netflix and Hulu. These platforms make money by charging viewers a monthly or annual fee for access to their content.

Examples of Streaming Platforms

Some popular ad-supported streaming TV services and platforms include:

  • Netflix
  • Hulu
  • Amazon Prime
  • HBO Max
  • Peacock
  • Paramount+
  • Pluto TV
  • Tubi
  • YouTube

How to Get Started with Streaming Advertising

Choose the Right Platform: It's important to choose the right streaming platform for your business. Consider the audience you're trying to reach and the type of content that's most relevant to them.

Create Compelling Ads: Creating compelling ads is key to the success of your streaming advertising campaign. Make sure your ads are relevant, interesting, and engaging.

Target Your Audience: Use the targeting options available on streaming platforms to reach your ideal audience.

Measure Your Results: Track the performance of your ads in real-time and make adjustments as needed.

Optimize Your Campaign: Optimize your campaign by testing different ad formats and targeting options to see what works best for your business.

Cost of Streaming TV Advertising

In 2025, streaming TV advertising costs range widely, offering flexibility for brands of all sizes. CPMs (cost per thousand impressions) vary by platform: Hulu averages $10–$30, YouTube TV $20–$25, Netflix charges $20–$30 programmatically and up to $65 for direct buys, while Disney+ and Amazon Prime Video command $30–$60 CPMs. These higher costs reflect CTV's superior value, including 95% ad completion rates, advanced audience targeting, and real-time performance tracking. With total CTV ad spend hitting $26.6 billion in 2025, it's clear that advertisers are prioritizing measurable, high-engagement streaming environments over traditional TV advertising.

Learn more on TV Ads cost here


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