OTT Advertising Management Flashcards

Question 1

What does OTT stand for in the context of video advertising?

Accepted Answer

OTT stands for over-the-top, meaning video content delivered over the public internet directly to viewers rather than through a traditional cable, satellite, or broadcast provider. Advertising in this space places ads inside streaming video sessions on connected televisions, computers, phones, and tablets.

Question 2

How does OTT advertising differ from traditional linear television advertising?

Accepted Answer

Linear television sends the same program schedule to everyone in a region, so advertisers buy fixed time slots. OTT delivers content on demand and can insert ads addressed to individual devices or accounts. Each stream is delivered separately, so OTT ads can be targeted, frequency managed, and measured per household or device.

Question 3

What is an ad-supported streaming tier, and why do platforms offer it?

Accepted Answer

An ad-supported tier is a lower-cost or free subscription level where viewers watch streaming content with commercial breaks. Platforms offer it to widen their audience, attract price-sensitive subscribers, and generate advertising revenue alongside subscription fees. For advertisers, these tiers provide large audiences with addressable, data-informed inventory that can be bought in bulk.

Question 4

What is a publisher, and what role does it play in OTT advertising?

Accepted Answer

A publisher is the streaming service or app that owns the content and the ad space inside it. It decides how many ad breaks appear, where they fall, and which ad formats are allowed. Publishers sell inventory directly to brands or through ad exchanges, and they set rules for quality, category exclusions, and frequency.

Question 5

Which parties usually take part in an OTT advertising transaction?

Accepted Answer

The main parties are advertisers, agencies, publishers, and viewers. Advertisers want to reach a defined audience, while agencies plan and buy media on their behalf. Publishers supply the streaming inventory, and technology intermediaries such as demand-side and supply-side platforms connect buyers and sellers. Viewers supply the attention that gives the ads value.

Question 6

What does the term ad inventory mean in OTT advertising?

Accepted Answer

Ad inventory is the amount of ad space a publisher can sell. In OTT, it is measured in ad slots within streaming sessions, such as pre-roll, mid-roll, and post-roll breaks. Inventory is limited by how much content is watched and how many breaks are scheduled, so publishers must balance revenue against viewer experience.

Question 7

What is an impression, and why is it the basic unit of ad delivery?

Accepted Answer

An impression is recorded each time an ad is delivered and loaded for a viewer, whether or not the viewer watches it fully. It is the basic unit for counting ad delivery and for pricing many campaigns. Advertisers therefore rely on verification to confirm ads reached real, viewable devices rather than bots.

Question 8

What is a completion rate, and how do advertisers use it?

Accepted Answer

A completion rate is the share of started video ad views that the viewer watches to the end. Advertisers use it to judge creative quality and whether a placement holds attention. Low completion may signal that an ad is too long, poorly placed, or irrelevant, so teams compare completion across creatives, formats, and genres.

Question 9

What are the main ad formats used in OTT streaming?

Accepted Answer

The most common OTT formats are pre-roll, which plays before content begins, mid-roll, which interrupts content at natural break points, and post-roll, which plays after the content ends. Many services also offer overlay or pause ads, interactive units, and sponsored segments. Format choice affects completion, viewer tolerance, and the price a buyer will pay.

Question 10

What is a pre-roll ad, and what makes it effective or risky?

Accepted Answer

A pre-roll ad plays before the requested program starts, so the viewer has committed to watching and the ad is usually seen in full. Its risk is abandonment: viewers who dislike the wait may leave before the content begins. Keep pre-roll ads short and relevant, and make them skippable where the platform allows.

Question 11

How do mid-roll ads differ from pre-roll ads in their placement?

Accepted Answer

Mid-roll ads appear inside the program, usually at scene changes or planned break points, while pre-roll ads appear before the program begins. Mid-roll placement can reach viewers who are already engaged, but it interrupts narrative flow, so platforms often place breaks at natural pauses. Longer content therefore offers more mid-roll opportunities.

Question 12

What is a post-roll ad, and when is it most often used?

Accepted Answer

A post-roll ad plays after the program finishes, before the next queued item. Viewers have watched the content, so they may be less willing to wait, and completion can be lower than for other placements. Post-roll is used as lower-cost inventory, or as a bridge into recommendations and autoplay sequences.

Question 13

What are overlay, pause, and interactive ad formats?

Accepted Answer

Overlay ads appear as small banners over the lower part of the video during playback. Pause ads show a static or brief message when a viewer stops playback, creating a low-intrusion impression. Interactive units let viewers select an option, request information, or open a product page, which can lift engagement but needs careful design.

Question 14

What are sponsorship and branded content placements in streaming video?

Accepted Answer

Sponsorship places a brand's name around a show, such as a presenting credit or a sponsored segment. Branded content goes further, with the brand helping fund or create material that fits the show's tone. These placements build association and recall, but they require approvals, clear disclosure, and close coordination with the publisher.

Question 15

What is a bumper ad, and how long does it usually run?

Accepted Answer

A bumper ad is a very short video message, typically a few seconds, that plays before, between, or after content. Its brief length is designed to be watched in full and to reinforce a single idea. Bumpers suit awareness goals and can support longer creative elsewhere in a campaign, though they deliver less detail.

Question 16

Why do ad format choices depend on the device and screen?

Accepted Answer

Ad format choices depend on the device because viewing context changes how ads are received. A connected television in a living room supports longer, full-screen video, while a phone may suit shorter, vertical, or skippable units. Formats must match the device's playback capabilities and interaction methods such as remote controls or touch input.

Question 17

What is programmatic advertising, and how is it used in OTT?

Accepted Answer

Programmatic advertising uses software to buy and sell ad impressions automatically, based on rules and audience data. In OTT, buyers bid on specific viewers or contexts as streams load, and the winning ad is served into the session. This replaces manual negotiations and allows targeting, though it relies on sound technology and clean data.

Question 18

What is real-time bidding, and what happens during an auction?

Accepted Answer

Real-time bidding is an auction process in which advertisers bid for a single ad impression as a stream loads. The supply side sends a bid request with available information about the viewer and context. Bidders respond within a very short window, the highest valid bid usually wins, and the winning ad is delivered almost instantly.

Question 19

What is a demand-side platform, and what does it do for advertisers?

Accepted Answer

A demand-side platform is software that lets advertisers and agencies buy ad impressions programmatically across many exchanges and publishers from one interface. It stores campaign goals, budgets, audience segments, and bidding rules, then decides when and how much to bid on each opportunity. It also reports delivery and spend so buyers can adjust strategy.

Question 20

What is a supply-side platform, and what does it do for publishers?

Accepted Answer

A supply-side platform is software that helps publishers sell their ad inventory programmatically to many buyers at once. It manages inventory rules, floor prices, buyer access to slots, and blocked creatives. By connecting to multiple demand sources, it aims to maximize yield while protecting viewer experience and brand standards.

Question 21

What is an ad exchange, and how does it connect buyers and sellers?

Accepted Answer

An ad exchange is a marketplace where demand-side and supply-side platforms meet to trade ad impressions through auctions. It receives bid requests from sellers, forwards them to buyers, runs the auction, and returns the result. Exchanges do not own content or ad space; they provide the venue and rules that let transactions happen at scale.

Question 22

What are direct deals and private marketplaces in OTT buying?

Accepted Answer

Direct deals are arrangements in which an advertiser and a publisher agree on pricing, volume, and placement without an open auction. Private marketplaces run invitation-only auctions where selected buyers compete for inventory that a publisher offers under agreed terms. Both give buyers more control than open exchanges and give publishers steadier revenue.

Question 23

What is a bid floor, and why do publishers set one?

Accepted Answer

A bid floor is the minimum price a publisher will accept for an impression in an auction. Publishers set floors to protect the value of premium inventory. Floors that are too high can leave inventory unsold, while floors that are too low may reduce yield, so teams review them against demand.

Question 24

What is ad fraud, and why is it a concern in streaming video?

Accepted Answer

Ad fraud is any deliberate attempt to generate fake or invisible impressions, clicks, or views to collect payment that advertisers do not deserve. In streaming video it can involve bots, spoofed devices, or hidden players. Fraud wastes budgets and distorts data, so buyers rely on verification and approved seller lists.

Question 25

What does audience targeting mean in OTT advertising?

Accepted Answer

Audience targeting is the practice of selecting who sees an ad based on attributes, interests, behaviors, or context. OTT platforms can use account information, viewing history, device type, location at a general level, and content being watched. Targeting shows relevant messages to likely buyers, but it must respect privacy rules and viewer consent.

Question 26

What is contextual targeting, and how does it differ from audience targeting?

Accepted Answer

Contextual targeting places ads based on the content being watched, such as a cooking show or a sports match, rather than the viewer. It needs no personal data, which helps where privacy rules or identifier limits apply. Audience targeting follows viewers across programs using attributes and behavior, while contextual targeting matches the program.

Question 27

What is a frequency cap, and why is it important for OTT campaigns?

Accepted Answer

A frequency cap limits how many times the same viewer or household can be exposed to an ad within a set period. Without caps, a few heavy viewers may see the same message repeatedly, which wastes budget. Caps help spread reach more evenly, protect the viewing experience, and make campaign results easier to interpret.

Question 28

What is reach, and how does it differ from impressions?

Accepted Answer

Reach is the number of unique viewers or households exposed to an ad at least once during a campaign. Impressions count total exposures, so one viewer who sees an ad five times adds one to reach but five to impressions. Comparing them shows whether a campaign spreads its message widely or repeats it heavily.

Question 29

How does household-level measurement differ from device-level measurement in OTT?

Accepted Answer

Household-level measurement combines viewing across devices that share an account or address, while device-level measurement counts delivery and viewing on one specific screen, such as a phone or television. Each approach changes reported reach and frequency, so advertisers should state which unit they use.

Question 30

What is a gross rating point, and how is it calculated?

Accepted Answer

A gross rating point is a measure of audience exposure equal to reach expressed as a percentage of a target population, multiplied by frequency. For example, a campaign reaching 30 percent of a target audience with an average frequency of 2 delivers 60 GRPs. GRPs let planners compare schedule weight across channels.

Question 31

What does viewability mean for an OTT ad?

Accepted Answer

Viewability is whether an ad was actually on screen long enough for a person to see it, measured against agreed criteria for how much of the player was visible and for how long. Advertisers compare viewable impressions with total served impressions. Low viewability signals wasted budget, so buyers often seek viewability guarantees.

Question 32

What is attribution, and why is it difficult in OTT?

Accepted Answer

Attribution assigns credit for a sale or other outcome to the ad touchpoints that influenced it. In OTT, it is hard because viewers may see an ad on one device and buy on another. Advertisers therefore use matched data, controlled tests, or incrementality studies to estimate what the ads actually caused.

Question 33

What steps should a campaign plan include before launch?

Accepted Answer

A campaign plan should define objectives, target audience, budget, flight dates, and key performance indicators. It should also specify formats, device and platform choices, frequency targets, and the buying approach, such as direct deals, programmatic, or a mix. Finally, it needs measurement methods and approval steps for creative and brand safety.

Question 34

What is brand safety, and how do advertisers protect against unsafe placements?

Accepted Answer

Brand safety means protecting a brand from appearing next to content that conflicts with its values, such as violent, hateful, or misleading material. Advertisers reduce risk by using content category exclusions, allowlists of approved content or publishers, keyword and genre filters, and verification tools. Strict rules can shrink available inventory and raise costs.

Question 35

What is pacing, and why do campaign managers monitor it?

Accepted Answer

Pacing is how evenly a campaign spends its budget and delivers impressions across its flight dates. Campaign managers monitor it to avoid underdelivery, where budget goes unspent, and overdelivery, where spend runs ahead of schedule and the best audiences are used up early. Adjusting bids, budgets, or frequency limits keeps delivery on track.

Question 36

What key performance indicators are common in OTT campaigns?

Accepted Answer

Common indicators include reach, frequency, impressions, completion rate, viewability, cost per thousand impressions, and cost per acquisition or other action when conversions are tracked. The right mix depends on the goal. Awareness campaigns emphasize reach and completion, while performance campaigns focus on cost per outcome.

Question 37

What is cost per thousand impressions, and how is it calculated?

Accepted Answer

Cost per thousand impressions, often abbreviated CPM, is the price paid for every thousand ad impressions. It is calculated by dividing total spend by total impressions, then multiplying by 1,000. For example, a campaign spending 5,000 units to deliver 2,000,000 impressions has a CPM of 2.50 units.

Question 38

How should a campaign manager respond when performance falls below target?

Accepted Answer

Start by diagnosing the cause before changing anything. Check whether the problem comes from delivery, such as low viewability or fraud, from creative fatigue shown by falling completion, from audience mismatch, or from pricing and inventory quality. Then make targeted adjustments, such as shifting budget, refreshing creative, tightening exclusions, or changing frequency, then monitor results.

Question 39

What is a test-and-learn approach in campaign optimization?

Accepted Answer

A test-and-learn approach compares controlled variations, such as two creatives, audience segments, or formats, against a shared goal. Each test changes one main variable at a time, so results can be attributed with reasonable confidence. Learnings are documented and applied to later flights, which steadily improves efficiency.

Question 40

What should a post-campaign review cover for future planning?

Accepted Answer

A post-campaign review should compare delivered results with the original objectives, budget, and targets. It should explain which audiences, formats, placements, and buying methods performed best, along with any issues such as fraud, viewability gaps, or brand safety incidents. The review should close with clear recommendations, so future plans start from evidence rather than assumptions.

OTT Advertising Management Flashcards

1Foundations of OTT advertising

2Ad formats and placements

3Programmatic buying and ad tech

4Audience targeting and measurement

5Campaign planning and optimization

Learning Resources