Over-the-top (OTT) services have completed their ascent to market dominance, and brands must adapt to capitalize on the opportunity.
That conclusion comes from a recent FreeWheel report, which shows exceptionally high engagement with premium video advertising on OTT platforms: viewers complete 98% of premium video ads on OTT. The report also finds OTT campaigns generally deliver stronger lifts in brand awareness compared with desktop and mobile campaigns.
FreeWheel, a Comcast subsidiary, compiled data from its customers to identify patterns in OTT viewing. For clarity, the report defines OTT devices as attached streaming devices such as Apple TV and Chromecast (accounting for 84% of ad views), gaming consoles (11% of views) and smart TVs (5% of views).
The study highlights substantial monetization potential across smart TVs and gaming consoles. It cites a comScore study that estimates these device types are present in roughly 30% and 28% of US Wi‑Fi households, respectively. OTT audiences also skew younger and wealthier than traditional TV viewers: a recent Nielsen Npower study reported a median age of 31 for OTT viewers versus 54 for traditional TV, and a median household income nearly $10,000 higher for OTT audiences.
In addition to the high ad completion rate, the report shows OTT viewers tend to spend longer periods per session on these platforms. Among the analyzed audiences, 36% watched more than 60 minutes per session, 19% watched between 30 and 60 minutes, 20% watched 10 to 30 minutes, and 25% watched less than 10 minutes. For those who watched an hour or more in a single visit, approximately 60% of that time was spent watching live-streamed content.
“We believe the future of TV will blend the best elements of linear and digital. When OTT transacts at scale with more standardized measurement, it will reach its full potential for brand marketers,” said Jonathan Bokor, SVP and director of precision video at Publicis Media Exchange. “Even with current measurement challenges, OTT delivers incremental reach and value for our clients, and we continue to develop creative approaches to engage these audiences.”
The report adds: “OTT offers meaningful promise for both publishers and advertisers. By combining the strengths of digital video and linear television, these devices provide a preview of how the future of premium video will evolve.”
Earlier industry analysis supports the trend toward streaming: a Level 3 Communications report from April predicted that hours spent watching linear streaming OTT video would exceed traditional television within a few years. FreeWheel also noted that, in the first quarter of this year, OTT devices overtook desktop as the leading digital platform for premium video ad views in the United States.
The findings underscore a shifting media landscape in which OTT platforms represent not only high engagement but also attractive demographics and growing reach—factors brands and advertisers should prioritize when planning media investment and measurement strategies.