Analyzing Retail Purchasing Behavior: Cable versus OTT Advertising
Liz Dustin
College: College of Business and Public Management
Major: BS.MARKETING
Faculty Research Mentor: Salehi, Reza Fazli
Abstract:
In the new age of digital media, the shift from traditional cable television to Over-The-Top (OTT) platforms change how consumers interact with advertisements. This study aims to compare consumer interaction with cable and OTT advertisements and their impact on retail purchasing behavior.After reviewing past literature, a set of propositions were formed. Engagement with ads from cable TV viewers was limited. Commercials play during scheduled breaks for large audiences, but their customer interaction remains weak. Consumers often mute the channel during commercial breaks, skip to a new channel, or turn the television off. Any purchase behavior occurs later, outside of the viewing environment. The traditional advertising model is disrupted with the rise of OTT services, and binge-watching habits.OTT platforms like Netflix, Hulu, Amazon Prime Video, HBO Max, Disney+, and YouTube provide a more interactive experience with ads through Connect TV (CTV). Ads are inserted based on user data, including viewing habits and demographic profiles, relating to the individual streamer. Viewers come across clickable overlays, QR codes, pause-screen ads, or shoppable formats that redirect them to shop products immediately. This fosters active engagement compared to traditional cable, where interaction ends once the commercial break is over.OTT platforms also offer tiered subscriptions, for instance ad-supported plans and ad-free options. Consumers who purchase ad-supported plans recognize the value exchange and are therefore more inclined to engage with the targeted ads. However, cable subscribers typically purchase bundled channels yet still receive mandatory advertisements, potentially affecting attitudes toward ad engagement.As OTT advertising evolves in 2026, AI-driven targeting and interactive retail features continue to enhance user participation, enabling consumers to move from awareness to purchase within the same digital ecosystem. Future research should explore how ad-supported versus ad-free subscription models impact consumer engagement and responsiveness to targeted retail ads.By analyzing retail purchasing behavior influenced by traditional cable television commercials versus advertisements on streaming services, I aim to determine which medium generates more customer interaction.Keywords: Over-The-Top (OTT), Connected TV (CTV), Streaming Services, Internet, Advertising