Primetime TV? Cable channels? Streaming has become the dominant media format in today’s world. Thanks to Netflix, Hulu, and YouTube, modern audiences increasingly watch content online rather than on TV.
What does this mean to marketers? Advertising must adapt to streaming audiences; OTT advertising can be a great way to do this.
Imagine reaching a targeted audience, the kind who are directly related to your business, right from their phones, laptops, and consoles. OTT advertising benefits both the customer as well as the provider. This guide will discuss the advantages of OTT advertising and how they can improve your digital services.
What Is OTT Advertising
Let’s first define OTT (Over-The-Top) before we define OTT.
OTT, or Over-the-Top (OTT), is a term used to describe any video streamed from the Internet. You can stream any tape over traditional cable or satellite TV when you don’t use broadcast.
The most popular OTT streaming platforms include:
YouTube Red
Netflix
Hulu
HBO Now
Amazon Prime Video
Peacock TV
Disney Plus
Apple TV +
Marketers can reach specific consumers easily with OTT. Imagine how many devices you could use to watch the new season of The Great British Bake Off via Netflix – laptops, mobile phones and tablets, and even gaming consoles. Compare that with the TV-only limitations of network sitcoms, which are restricted by channels and television schedules.
How does OTT advertising affect the accessibility of OTT services?
OTT advertising is delivered to viewers directly across all OTT platforms. This includes the unskippable ads during The Handmaid’s Tale on Hulu and those before a video by a YouTube makeup guru.
Benefits of OTT Advertising
OTT advertising will be around for a long time, and there are five reasons that this is the case.
Reach Mass Audiences
Cable boxes are no longer the best option. Many people now use internet-connected devices instead of primetime broadcasts to watch their favorite media.
Advertisers can expect a treasure trove on the OTT side and will be there for a long time.
Do you need proof that OTT has a monopoly on modern audiences? Take a look at these statistics about the growing number of platform viewers:
More people own CTV — Have you ever seen an Apple TV before? Roku stick or Chromecast box? Chromecast box? These devices are CTVs, which connect televisions to streaming services and the Internet. In the United States, more than 80 % owned a CTV last year. This is up from 54% five years ago.
Increasing streaming subscribers Currently, 82% of U.S. consumers subscribe to at minimum one OTT video service. Better yet, the average U.S. consumer subscribes to four services. Experts predict that the number of subscribers will only increase in the future.
Declining satellite and cable subscribers – In 2020, 6.6 million viewers will have cut their subscriptions. This steep drop in total viewers is expected to continue. 5 Traditional TV advertising slots lose their value compared with OTT advertising.
The younger audience- To get a glimpse into the future, look at the demographics of the young. The traditional TV viewing rate for 18-34-year-olds has dropped by 23.4% in the past year. With 12-17-year-olds, you have the very first generation that is more comfortable with streaming content via CTVs than traditional TV.
More advertising-supported services — During 2020, streaming services with ads grew by 9% while services without ads grew by only 5%. Translation Translation?
Micro-Target Viewers
Comparatively, TV ads are a more “wide-net marketing strategy” than OTT. Many people may see your ad campaign, but TV channels are too diverse to allow one commercial to grab the attention of everyone.
On the other hand, OTT content allows advertisers to benefit from Addressable Advertising – or customizing and playing ads for different viewers based on their demographics and interests.
OTT advertising allows for micro-targeting of consumers to maximize engagement. A 17-year-old boy and a woman 32 years old could stream the same episode, “Bob’s Burgers,” but they would each see completely separate ads. Advertisers could target a video gaming console ad to the teenager and a cruise package ad to the woman.
Advertisers can target specific demographics when working with OTT advertising, including:
Age
Gender
Location
Income Level
Education
Ethnicity
Use of the device to a particular time
With the top OTT platform, you don’t have to cast a wide net for TV ads. You can instead target the exact customers your business wants. Marketers should take note.
Utilize Better Data Analytics
OTT advertisers can target specific demographics and niche audiences with the help of advanced data analytics and feedback, which can be accessed from many web platforms that host OTT ads.
Here are some of the critical data points that only OTT can provide advertisers, from viewing time to completion rates:
Track consumer behavior
Not only is it essential to know the type, but also their behavior.
How long do viewers watch a 30-minute comedy show? When do they watch romance movies? What device is the most popular? OTT platforms can store these metrics and many more.
Marketers can use this data to their advantage. You can reach a target audience more effectively by knowing their behavior.
View Performance Analysis
OTT advertising and services allow marketers to track the performance of their advertisements among viewers.
You’ll only get feedback from TV ads if the screen is on and the viewer is in the exact location. (And even then, they might go to the bathroom). With OTT ads, however, you’ll be able to collect a wealth of information that will help improve your campaign, including:
Total Views- How Many viewers saw the entire advertisement?
Video completion rates – What percentage of viewers viewed the advertisement as a whole?
Attribution Tracking – Consumer actions based on the product (such as click-through rates, subsequent internet searches, and more).
Demographic Responses – How consumers of different ages, ethnicities, and other demographics reacted to the advertisement