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Streaming Takes Over: Data-Backed Insights on Why OTT Advertising Is a Powerhouse Strategy in 2025

New Road Advertising | Automotive Digital Marketing and Advertising Agency > OTT > Streaming Takes Over: Data-Backed Insights on Why OTT Advertising Is a Powerhouse Strategy in 2025

Streaming Takes Over

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Over-the-top (OTT) advertising – ads delivered via streaming video platforms – has become a must-have channel for marketers. In 2025, OTT advertising in the United States is proving extremely effective, with 96% of U.S. households streaming video content on OTT platforms. This blog dives into recent U.S. statistics and trends on streaming usage, audience engagement, and ROI, revealing the data behind why OTT advertising works so well.

Streaming video usage in the U.S. is now nearly universal. 

  • As of late 2024, 96% of U.S. households (about 125 million households) stream video content via OTT platforms.
  • 88% of U.S. households are subscribed to at least one paid OTT service.
  • In 2015, only 52% subscribed to a streaming service; this grew to 78% by 2020 and 88% by 2024. 
Video Streaming Subscriptions Growth

Not only are more people streaming — they’re subscribing to more streaming apps than ever to access all the content they want!

OTT Streaming Surpasses Traditional Cable

In July 2022, U.S. streaming usage surpassed traditional cable TV, and there’s been no turning back. The rapid rise of OTT has opened new doors for businesses and advertisers to effectively reach their audiences.

OTT advertising offers clear advantages over traditional TV, including:

  • Precision targeting
  • Detailed performance tracking
  • Stronger viewer engagement
  • Higher ROI (return on investment)  and ROAS (return on ad spend

In fact, in 2024:

OTT = The way content is delivered (via internet, not cable) CTV = The device where OTT content is viewed (Smart TV, Roku, Apple TV, etc.) 📱 OTT ads also appear on phones, tablets, and desktops—increasing brand reach beyond the living room. – All CTV ads are OTT ads, but not all OTT ads are seen on TVs

Streaming Trends Across Generations - All Ages Are Tuning In

Almost everyone, regardless of age, streams content through OTT platforms. From gripping Netflix dramas and live sports on ESPN+ to free, ad-supported TV channels and YouTube videos, OTT has something for everyone.

Gen Z and Millennials: Power Streamers

  • Millennials and Gen Z account for 65% of overall OTT viewership, consuming significantly more streaming content than any other demographic.
  • Gen Z watches an average of 6.5 hours of streaming video per day, while Millennials watch 5.7 hours.
  • 61% of Millennials and 58% of Gen Z prefer ad-supported plans to save money.
  • Over 70% of Gen Z streams content on phones or tablets.

These age groups are more likely to take action after seeing personalized and relevant ads tailored to their interests.

Gen X: The Balanced Streamers​

Gen X (ages 44–59) is a key OTT segment, straddling habits between digital natives and traditional viewers.

  • 85% stream content weekly, often on Smart TVs and devices like Roku.
  • 63% prefer ad-supported streaming services to save money.
  • Gen X viewers are 28% more likely than Gen Z to watch long-form content than Gen Z, making them a strong audience for longer ad formats like storytelling ads.

Adults 50+ : Fast Growing OTT Segment​

Older generations are embracing streaming, challenging assumptions that they’re unreachable outside of cable.

Roku and DeepIntent surveyed over 3,000 U.S. adults across every age group and discovered some surprising trends about older streaming viewers:

79% of Americans aged 50+ are streaming viewers according to Roku.
  • 79% of adults aged 50+ use streaming services (up from 62% in 2020)
  • 52% of those 50+ are streaming more now than they were a year ago.
  • 66% of adults 50+ prefer ad-supported streaming services (AVOD), making them more open to advertising than the general population.
  • 21% of adults 50+ have completely moved away from traditional cable and rely solely on streaming services.
    • This means one in five adults 50+ can only be reached through streaming platforms and CTV. 
    • So, if you’re still relying solely on cable TV advertising, you’re missing a large—and growing—segment of your audience!
  • 96% of cord-cutters aged 50+ are satisfied with their decision to cancel cable or satellite.

Even Baby Boomers are on streaming apps with streaming usage across their generation increasing by 30% between 2021 and 2024!

 

So, if you think older audiences aren’t watching—think again. Streaming is now a truly cross-generational habit, and OTT advertising reaches them where traditional media no longer can.

The Impact of Demographics on Streaming Subscriptions and Ad Engagement​

Nearly every segment of the population is now juggling several OTT subscriptions, from Netflix and Disney+ to HBO Max, Amazon Prime Video, Hulu, Peacock, Paramount+, and beyond.

As of early 2024:

  • 57% of U.S. streamers use an ad-supported service (for example, the “with ads” plans of Hulu, Peacock, Netflix, etc.)
  • Free ad-supported TV (FAST) platforms like Tubi and Pluto TV are exploding in popularity.
  • Tubi viewership saw a 43% year-over-year increase.

High Ad Engagement Sets OTT Apart​

Advertisers have multiple chances to re-engage viewers through a variety of content formats and devices.

Unlike many online formats, OTT ads typically can’t be skipped. 

This format drives superior recall, consideration, and action compared to traditional digital formats like banners or YouTube pre-roll.

At New Road Advertising, we don’t just believe in OTT—we’ve proven it works. Our campaigns consistently drive real, measurable results for our clients. 

📊 Results That Speak for Themselves Our OTT remarketing campaigns have delivered an impressive: Average unique conversion rate: 35.04% An exceptional high of 63.39% total conversion rate in a single 31-day campaign

One of our most successful campaigns helped a Kia dealership in Texas jump from last place in their district to #1, after implementing our OTT strategy.

Whether you’re targeting tech-savvy Gen Z on mobile or Baby Boomers watching on their Smart TVs, the opportunity is clear:

✅ Audiences of all ages are streaming more than ever.
✅ OTT ads are watched in full, delivering your message without interruption.
✅ Viewers are choosing ad-supported plans, inviting your brand into their experience.

Our System Is Built to Convert

We combine:

  • First-party data partnerships for precise audience targeting
  • Strategic OTT remarketing to re-engage high-intent users
  • Continuous optimization to boost ROI and maximize every ad dollar

As streaming becomes the primary screen in American homes, our team harnesses OTT to help clients generate leads, increase brand recall, and drive sustainable growth.

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