The rise of OTT platforms has reshaped the advertising landscape, offering brands something that traditional TV never could—precision. Unlike television, where ads are broadcasted to a broad audience, OTT platforms allow brands to target users based on their viewing habits, location, demographics, and even shopping preferences. But is this hyper-targeting the real driving force behind OTT’s success, or is it just a byproduct of a larger shift in how people consume content?
With platforms like JioCinema and Disney+ Hotstar leading the charge, sports, entertainment, and news-based OTT services now account for 10% of total digital ad revenues, according to the FICCI 2025 report. The reason is simple: OTT platforms offer a level of engagement that TV cannot.
As Russhabh Thakkar, CEO of Frodoh World, explains, OTT’s ability to show personalised ads based on viewing history creates a more effective ad experience. Someone frequently watching fitness content is far more likely to be interested in a smartwatch or a yoga mat than a generic TV viewer. This data-driven approach ensures that brands reach the right audience, leading to higher conversions and better returns on investment.
Unlike TV, OTT platforms allow viewers to engage with ads in real time. Clicking on an ad while watching a show and instantly moving to a purchase page is a game-changer for brands. Aruna Daryanani, Director at Amazon MX Player, shared how Amazon’s Shopping Signals observed that 77% of Aashram drama series viewers were tech-savvy, while 60% were fashion-forward—crucial insights that can shape ad strategies.
A recent example proves the impact of such targeted advertising. A new speaker brand that advertised on Hip-Hop India saw a spike in search results on Amazon, showing a direct correlation between OTT ad exposure and sales. This kind of measurable impact is something TV has never been able to offer.
However, while personalised ads are undoubtedly lucrative for platforms, they are not the sole reason for OTT’s dominance. The bigger shift is in how people consume content. The freedom to watch on-demand, skip ads, and access content across devices is what makes OTT attractive in the first place. The ad model is simply evolving alongside these changes.
Unlike traditional TV ads, which rely on a captive audience, OTT advertising thrives because viewers are already invested in the platform. They choose what they want to watch, and in doing so, provide data that makes personalisation possible. The challenge now is balancing this with user experience—too many ads, or poorly placed ones, could push audiences toward ad-free alternatives.
Personalised ads are undeniably a key factor in OTT’s business model, but they are not the foundation of its success. People are shifting to streaming because of convenience, variety, and control over their viewing experience. Ads are merely evolving to fit this new ecosystem.
For OTT platforms to sustain their growth, they need to ensure that ad personalisation doesn’t become intrusive. The balance between monetisation and user experience will decide whether personalised ads remain a driving force—or if users will once again seek ways to tune them out.