The main aim of the study was to examine the advertisement practices of OromiarnTelevision and audience reaction with the theoretical foundation of encoding andrndecoding and situational ethical theory. The study of the research employed descriptiverndesign involving both quantitative and qualitative approaches.rnData were qualitatively collected through in-depth interview and questionnaire with openrnand close ended questions. Besides, purposive sampling method was employed to selectrnthe respondents of the study. The data obtained from conducted interview were analyzedrnqualitatively. In the study, the data which were gathered through document reviewrnbasically ethical guideline and sample of broadcast ads, were presented in the forms ofrndescriptive and the responses of the audience were presented in the form of the tables andrnchart with frequency and percentage. Finally, this data were analyzed quantitatively.rnThrough the help of above methods the research answered four basic research questions.rnThe findings of the study revealed that OTV advertisement manual which has producedrnby OTV and which were not given more attention to the problem (Marketing concept andrnprofessionalism) of advertisement ethics. The procedures more of followed byrnconducting advertisement focused on revenue generation. And the findings of the studyrnalso revealed that most of ads have the problem of imitation from local and foreignrnlanguage, this leads the advertisement practices of OTV to standardization, similarly thernpractices are not understandable, the advertisement message is not adequate and somernadvertisement messages have no logical link with the product or products beingrncommunicated and advertisements transmitted on OTV are unreliable, exaggerated andrndeceptive information.rnBased on these indications the study concludes that there are problems of ethics in OTVrnadvertisement which have been resulted from many factors. OTV advertisement practicesrnhave negative influence on purchasing decisions of the audiences. Finally, great attentionrnshould be given for improvement of the advertisement practices of OTV.