Many D2C founders are starting to look beyond Meta and Google for growth. Rising customer acquisition costs and unpredictable performance have made performance marketing harder to scale.
This has pushed many marketing leaders to explore channels like CTV and OTT advertising. But a common question remains: is this channel actually viable for mid-size D2C brands, or is it still only useful for large consumer brands with massive budgets?
What Are CTV and OTT Advertising and Why Are D2C Brands Exploring Them?
CTV (Connected TV) and OTT (Over-The-Top) advertising refers to ads shown on streaming platforms that users watch through internet-connected TVs, mobile devices, or streaming apps.
Examples include ads shown on:
- Disney+ Hotstar
- SonyLIV
- JioCinema
- Amazon MiniTV
Unlike traditional television advertising, OTT allows brands to:
- Target specific audiences
- Measure impressions and engagement
- Run digital-style campaigns on TV screens
For D2C brands, this creates a new opportunity to combine brand building with measurable digital reach.
Why Are Many D2C Brands Looking Beyond Meta and Google Ads?
Over the past few years, most D2C growth has been driven by performance ads.
However, many founders are now facing problems such as:
- Rapidly increasing acquisition costs
- Reduced attribution visibility after privacy changes
- Ad fatigue among target audiences
- Over-dependence on a single channel
These challenges are explained in detail in this guide on Rising CAC for D2C brands.
As a result, marketing leaders are now exploring top-of-funnel channels that can generate brand demand rather than only capture existing demand.
Is CTV and OTT Advertising Affordable for Mid-Size D2C Brands?
A few years ago, OTT advertising was mostly used by large brands.
But today, the cost structure has changed.
Many platforms now allow:
- Lower minimum campaign budgets
- Programmatic buying
- Targeted regional campaigns
This means even mid-size D2C brands with ₹20–50 lakh monthly marketing budgets can start experimenting with OTT.
However, it should not be treated like performance advertising.
OTT works better as a brand awareness channel, not a direct response channel.
What Advantages Do CTV and OTT Ads Offer D2C Brands?
CTV and OTT advertising offers several advantages compared to standard digital ads.
1. Higher Attention and Completion Rates
Unlike social media ads, OTT ads are usually watched on large screens.
Most viewers cannot skip them easily.
This leads to:
- Higher completion rates
- Better brand recall
- Stronger storytelling opportunities
2. Premium Brand Perception
When a brand appears on TV screens, it often creates a perception of scale and credibility.
For example:
A skincare D2C brand advertising on OTT during a cricket tournament may instantly appear more established than competitors running only social ads.
3. Wider Household Reach
Many OTT viewers watch content with family members.
One impression can reach multiple decision makers in the same household.
This is particularly useful for categories like:
- Home products
- Health supplements
- Food and beverages
When Should a D2C Brand Start Testing OTT Advertising?
CTV and OTT ads usually make sense only after a brand reaches a certain growth stage.
In most cases, brands should consider OTT when:
- Monthly marketing spend exceeds ₹20–30 lakh
- Product-market fit is already proven
- The brand wants to scale awareness beyond performance channels
For early-stage brands, channels like search, social, and marketplaces still deliver better ROI.
But once a brand begins trying to scale D2C brand without increasing costs, expanding into brand channels becomes necessary.
What Metrics Should Marketing Leaders Track for OTT Campaigns?
One of the biggest mistakes founders make is evaluating OTT campaigns using performance marketing metrics.
Instead of tracking only conversions, teams should monitor:
- Reach and frequency
- Video completion rate
- Brand search lift
- Direct traffic growth
- Assisted conversions
For example:
A nutrition brand running OTT ads may see:
- Branded Google searches increase by 40%
- Website direct traffic rise by 25%
These signals often indicate that brand awareness is improving.
What Common Mistakes Do D2C Founders Make With OTT Advertising?
Many founders approach OTT with the wrong expectations.
Common mistakes include:
- Expecting immediate ROAS like Meta ads
- Running campaigns without proper creative storytelling
- Spending too little budget for meaningful reach
- Measuring success only through last-click attribution
OTT works best when it is part of a broader growth system, not an isolated experiment.
What Growth Framework Should D2C Brands Use When Adding OTT Advertising?
When used correctly, OTT should support a multi-channel growth strategy.
A simple framework looks like this:
1. Demand Creation Channels
- CTV and OTT
- YouTube
- Influencer collaborations
These channels create awareness.
2. Demand Capture Channels
- Google Search
- Meta Ads
- Marketplaces
These channels convert demand.
3. Retention Channels
- Email marketing
- WhatsApp marketing
- Loyalty programs
Improving retention is critical if brands want to increase profitability. Many brands focus on acquisition but ignore retention strategies explained in this guide on How to increase LTV.
This multi-channel approach becomes especially important for brands trying to Scale D2C brands beyond 100Cr.
Can CTV and OTT Advertising Help D2C Brands Build Long-Term Growth?
For many D2C brands, the biggest growth challenge is over-dependence on performance advertising.
As acquisition costs continue rising, brands must build stronger brand demand and recognition.
CTV and OTT advertising can play an important role in that shift. While they may not deliver instant ROAS, they can significantly increase brand awareness, trust, and long-term demand.
When integrated into a broader marketing system that includes retention strategies, distribution expansion, and strong performance marketing execution, OTT can become a powerful lever for sustainable growth. Many brands therefore partner with an experienced D2C marketing agency to structure these multi-channel strategies effectively.
Ankur Sharma is the founder of Brandshark, a digital marketing and growth agency that helps high-growth brands scale through performance marketing, SEO, and data-driven growth systems.
He has over a decade of experience helping D2C and B2B companies build scalable customer acquisition systems. His expertise includes performance marketing, SEO, conversion optimisation, and growth strategy.