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OTT vs YouTube Advertising: Which Platform Drives Better ROI?

Written by Data Storytellers at Trilogy | May 16, 2025 7:53:21 PM

OTT vs YouTube Advertising: Which Platform Drives Better ROI?

Choosing the Right Video Ad Channel in 2025

Table of Contents

  1. What's the Difference Between OTT and YouTube Advertising?
  2. Strengths of OTT Advertising
  3. Strengths of YouTube Advertising
  4. Cost & ROI Breakdown (2025 Snapshot)
  5. Which One Is Right for You?
  6. Want to Maximize Your Video Ad Spend?

Video ad spend is EXPLODING. BILLIONS are flowing. BUT... where's it actually going?

The rise of OTT (Over-the-Top) platforms alongside traditional YouTube advertising has left brands wondering: Which platform actually delivers better ROI?

The truth? It depends on your audience, goals, and creative strategy. But if you're running ads based on assumptions instead of AdTech and data solutions, you're likely leaving money on the table.

Let's break it down.

What's the Difference: OTT and YouTube Advertising

OTT Advertising

OTT refers to ads delivered through streaming services that bypass traditional cable (think Roku, Hulu, Sling TV, Tubi). These run through programmatic ad platforms, offering placement on connected TVs, mobile apps, and smart devices.

YouTube Advertising

YouTube ads run within the YouTube platform and its network. Options include skippable and non-skippable in-stream ads, display formats, and discovery ads. You can target by interest, keyword, channel, or video content.

Strengths of OTT Advertising

  • Leans into TV-sized screens — Your ad shows up on the biggest screen in the house
  • Captive audience — Viewers can't skip and are more likely to watch in full
  • Access to premium content — Many OTT services offer placements alongside well-produced, longer-form shows
  • Advanced household-level targeting — Audience segmentation based on behavior, location, or even purchase intent

Ideal for:

  • Brand awareness at scale
  • Reaching cord-cutters
  • Cinematic storytelling or high-end creative

Strengths of YouTube Advertising

  • Massive reach — Over 2.7 billion logged-in users per month
  • Better performance tracking — Easily tie views to actions like clicks, site visits, and conversions
  • Flexible budget options — Great for small businesses and large-scale campaigns alike
  • Search intent targeting — Show your ad based on what people are actively looking for

Ideal for:

  • Performance marketing
  • Retargeting site visitors or leads
  • Reaching mobile-first users
  • Keyword-based campaigns

Cost & ROI Breakdown (2025 Snapshot)

Metric OTT Advertising YouTube Advertising
Avg. CPM $25-$45 $10-$18
Completion Rate 90%+ (non-skippable) 70-85% (varies by format)
Clickability Low High
Measurement Tools 3rd-party platforms Google Ads dashboard
Targeting Precision High (household/interest) High (intent + behavior)

Note: OTT generally prioritizes brand lift. YouTube supports both brand and direct response goals.

Which One Is Right for You?

A good rule of thumb:

  • Go OTT if you want broad reach, strong brand recall, and lean-back audiences.
  • Go YouTube if you want to drive traffic, conversions, and measurable ROI quickly.
  • Use both if your campaign goals span awareness → action.

At Trilogy Analytics, we often blend these approaches. We pair emotional, long-form OTT placements with short, punchy YouTube retargeting to guide people from first impression to final click.

Want to Maximize Your Video Ad Spend?

Looking to take your video advertising strategy further? Understand how to turn analytics obstacles into advertising wins and discover the full potential of data-driven marketing approaches that maximize ROI. Once you've chosen your ideal platform mix, learn how to develop a high-converting strategy that stands out in today's crowded digital landscape.

Whether you're testing OTT for the first time or trying to make YouTube work harder, Trilogy Analytics can help you build a data-driven strategy that cuts waste and amplifies impact.

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