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The Increasing Importance of Programmatic OTT Advertising

The significance of OTT advertising is already becoming incredibly clear for many marketers, but what many are missing out on is the increasing importance of using programmatic methods to boost OTT advertising success. OTT alone has so much potential because of its targeting capabilities; but combined with programmatic, it can be unstoppable and create the differentiator your brand needs to get ahead.


Alone, that statement can sound too good to be true. However, studies are saying otherwise. Not only does eMarketer research support the rapid growth of OTT/CTV in programmatic ad spending (predicting as much as 52.9% growth in 2021), but Pixalate reports that nearly three-fourths (72%) of U.S. households are now reachable by programmatic OTT/CTV advertising (up from 59% in Q1 2020) with the majority (49%) of programmatic OTT/CTV ads going to Roku devices.

With that being said, this is just the tip of the iceberg. There’s still so much that can be discovered and maximized with programmatic OTT advertising, and it would be a mistake to ignore its increasing importance.


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As a refresher, OTT refers to delivering content to consumers through platforms that go over the top of cable providers to deliver movies/shows to consumers directly through the internet. OTT advertising is the advertising method allowing marketers to reach these cord-cutters via streaming platform commercials. 

Programmatic advertising refers to the use of automation software to purchase digital ad space that is only targeted to your specific audience and is executed via algorithms customized to your unique business goals and needs. It replaces traditional methods of in-person, time-consuming negotiations and requests with a process that has significantly more reach in a matter of milliseconds.

Together, the two are incomparable to almost any strategy on the market right now. Programmatic OTT advertising refers to the customized and automated process of exchanging digital ad space between advertiser and publisher through real-time bidding via streaming platforms and Connected TV (CTV) devices like a smart TV.

The result? Quicker exchanges with sellers, more relevant impressions via customizable features, and a boost in reach among your target audience that can make your previous efforts look small in comparison.



In short, programmatic OTT advertising matters because OTT is continuing to rise in popularity against cable TV, and programmatic methods allow marketers to take an already successful advertising strategy and maximize its potential in real-time.

Being able to reach your audience where they’re at while they are most susceptible to your message is key to meeting your goals. OTT is where they’re at, and programmatic is the most efficient way to ensure your reaching the right people at the right time.

The rise in popularity of streaming services alone makes programmatic OTT advertising matter, not even considering its potential elsewhere. For instance, the latest trends in advertising are leading marketers to allocate their approach to encompass CTV, SVOD, and AVOD to help minimize ad creative fatigue that can sometimes lead to disengaged consumers and improve strategies with non-skippable and semi-frequent ads, a more actively engaged audience, and more consumer data than ever before.

This means that with more people opting for OTT — a market that is expected to grow at a CAGR of 29.4% from 2020 to 2027 — media buyers can become more successful by taking advantage of OTT programmatic advertising, understanding that they are buying valuable space and time with a very specific target audience.


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The time to capitalize on these trends decreases by the day as more companies react to the rise in streaming service popularity. Getting on track before everyone begins taking advantage of this incredible opportunity will allow you to not only reap the benefits sooner but strengthen your expertise and strategy before most brands in your industry learn what it is, its value, and its potential in the future. Waiting to take action can allow your competition to do this while you struggle to catch up down the road.

Marketing benefits aside, programmatic OTT advertising is on the rise because there is much more trust between buyer and seller when advertisements provide more meaning to consumers over high-frequency advertisement spams that aren’t directly correlated to the consumer and their buyer journey. More trust means more loyalty and better buyer-seller relationships.

Programmatic enhances OTT opportunities by combining target audience efficiency with wider reach, quicker bids and buying, and a genuinely personalized experience for an audience that will be more open to your product/service.

MediaRadar reports that more than 76% of brands advertising digitally allocated at least a portion of that to programmatic advertising a little more than a year ago, with the percent of digital advertisers utilizing programmatic ad-tech rising to 83% by Q2 2020. That number has been steadily increasing since with no end in sight.

Programmatic OTT advertising ad spend, in particular, was already said to grow by almost 60% within the next year by eMarketer, due to its capability to win impressions based on geography, online/offline behaviors, and other personal data that makes the ad relevant to the consumer. As its capabilities continue to come to light, that percentage will only increase with time.



Reaching the right audience with your message has been a marketing challenge since the beginning of time, and it most likely always will be. With Programmatic OTT advertising, however, your brand capabilities get a much-needed boost over the competition. The truth is that traditional ad buying methods are going to put a halt in your company’s potential when up against a far more efficient automation software that takes what humans need days to complete and condenses it into less than a second. Combining programmatic and OTT right away will get you ahead of the competition and directly in front of your consumers. When you’re ready to level up your advertising efforts, get in touch with our team at Strategus to get more insight into programmatic OTT advertising and how it will take your brand where it should be.


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Andy Dixon is a seasoned Content Writing Specialist at Strategus, renowned for his expertise in creating engaging and impactful digital content. With over a decade of experience in content creation, Andy has honed his skills in a variety of niches, ranging from technology and marketing to education.

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