Connected TV (CTV) and Over-the-Top (OTT) advertising have revolutionized the marketing landscape, merging the expansive reach of traditional television with the precision of digital platforms. As of 2025, these mediums have become indispensable for brands aiming to engage audiences with targeted, measurable, and impactful campaigns.

Current Landscape of CTV and OTT Advertising

The adoption of CTV has seen remarkable growth, with 88% of U.S. households now equipped with at least one internet-enabled TV device. This widespread integration has led to a significant surge in CTV advertising investments, projected to reach $42.4 billion by 2027.

Streaming platforms have recognized the potential of ad-supported models. For instance, Amazon Prime Video has expanded its advertising services, introducing interactive ads that allow viewers to shop directly from their screens. Similarly, the UK's market for TV streaming advertising is expected to exceed £1 billion, driven by platforms like Netflix introducing ad-supported tiers.

Actionable Insights and Best Practices

1. Leverage Advanced Targeting Capabilities: CTV and OTT platforms offer sophisticated targeting options, enabling brands to reach specific audience segments based on demographics, interests, and viewing behaviors. Utilizing these capabilities ensures that your ads resonate with the intended audience, enhancing engagement and conversion rates.

2. Create Engaging and Relevant Content: The non-linear nature of OTT allows for flexibility in ad formats. Crafting compelling narratives that align with the content being consumed can capture viewer attention. Interactive elements, such as shoppable ads, can further drive engagement by providing immediate paths to purchase.

3. Implement Continuous Optimization: Regularly analyze performance data to identify trends and areas for improvement. A/B testing different creatives, refining targeting parameters, and adjusting messaging based on feedback can significantly enhance campaign effectiveness.

4. Ensure Seamless Integration: Ads should blend naturally into the viewing experience to avoid disrupting the audience. Formats like pause ads or short, non-intrusive video spots can deliver your message effectively without causing viewer fatigue.

Industry Trends

• Growth of Ad-Supported Streaming Services: Many streaming platforms are introducing or expanding their ad-supported tiers, providing more opportunities for advertisers to reach audiences who prefer free or lower-cost content options.

• Advancements in Measurement and Attribution: Improved analytics tools are enabling more precise measurement of ad performance across CTV and OTT platforms, allowing brands to better understand ROI and optimize future campaigns.

• Integration of Artificial Intelligence (AI): AI is playing a pivotal role in enhancing targeting precision, automating ad placements, and personalizing content to individual viewer preferences, thereby increasing the effectiveness of advertising efforts.

Aligning with Kepler's Expertise

At Kepler, we harness the power of data-driven insights and advanced technology to optimize CTV and OTT advertising strategies. Our Kepler Intelligence Platform (Kip)™ leverages AI to analyze vast datasets, enabling precise audience targeting and real-time campaign optimization. Through our comprehensive media buying services, we ensure that your ads are strategically placed across the most relevant platforms to maximize reach and impact.

Incorporating CTV and OTT advertising into your marketing strategy offers a dynamic avenue to connect with audiences in the evolving digital landscape. By staying informed about industry trends and implementing best practices, brands can effectively navigate this space to achieve their marketing objectives.

Want to learn more? Get in touch with us today.