OTT or over-the-top platforms stream video directly to viewers through the Internet. This video streaming service allows marketers to promote their products and services to the viewers via their viewing devices.
The advantages of OTT advertising are plentiful: targeted advertising and advanced analytics. Dynamic ad insertion allows you to interact with your audience in several ways.
OTT platforms allow you to connect with your modern audience. Which OTT platform is best for your business? Learn more about the top OTT platforms used for marketing and advertising.
What is an OTT Platform
What is OTT, and why is it important? What’s more relaxing than watching your favorite Netflix series on a smart television, listening to a podcast through the Spotify app on your phone, or viewing a New York Times Newsreel via your laptop?
All these actions share one thing: platforms.
Over-the-top, or OTT, is a term used to describe any content streamed from the Internet (not through broadcast radio or network TV). In the last few years, the number of streaming audiences has increased, making OTT platforms one of the most fertile advertising territories on the market.
Pricing and content sources models are OTT platforms that affect how advertisers can advertise to viewers.
Pricing Models
It’s crucial to know how each service provider operates regarding OTT marketing. Not all OTT platforms allow the same access. All OTT content can be accessed via the Internet. All streaming services use one of three pricing options to open their content up to customers:
Subscription for Video – Some OTT platforms have subscription plans, in which users pay a fee (typically more expensive) to access content free of advertisements. This model is used by streaming services such as Netflix, Amazon Prime Video, and Disney Plus. It blocks all advertising opportunities, which is a problem for marketers.
Ad-supported (AVOD)- Other OTT platforms are entirely ad-supported to replace subscription fees. This model is used by streaming services such as Tubi TV, Pluto TV, Sling TV, Xumo, and Sony Crackle. These platforms can offer advertisers a wide range of options, depending on their platform.
Hybrid- A hybrid model offers its customers subscription plans and ads-supported platforms. Hulu, for example, offers viewers the option of a cheaper subscription with advertisements or a more expensive subscription without advertising. Spotify, for example, offers free accounts that include ads and premium subscriptions to enjoy ad-free experiences.
Due to the absence of commercials in subscription-only models, marketers are limited to using ad-based or hybrid OTT platforms to reach their target audience.
Source Code
The origin of the content is another way to distinguish an OTT streaming service. Netflix, Hulu, and other streaming services produce some original content. Others (such as Pluto TV and Fubo) rely primarily on non-original TV content.
The majority of OTT platforms fall into three categories:
Native Streaming platforms that produce exclusive content are native OTT platforms. Netflix, Hulu, and Amazon Prime Video are all native services, as they create original content that can only be accessed on their respective platforms.
TV Editor – You can watch live TV on various channels, including the Discovery Channel, CBS, and Cartoon Network. These networks offer streaming apps that allow viewers to watch their content on a streaming device such as a smartphone or laptop. These OTT platforms can be referred to as TV publishers.
Linear-Streaming – Linear-streaming is similar to traditional TV programming. Viewers can view live TV shows scheduled to air at specific times via the Internet instead of watching them on broadcast or cable. OTT platforms like Sling, Pluto TV, and Fubo rely heavily on linear streaming.
Many OTT platforms combine their sourcing. Peacock TV, NBCUniversal’s streaming platform, mixes original programming with NBC shows and live news.
Knowing its content source lets you decide whether a platform is the best place for your advertising.
Top OTT Platforms For Businesses
In the last few years, OTT platforms’ viewership has increased and shows no sign of slowing down. The global OTT market was worth $121.61 billion in 2019, with projections of $1.039 trillion being reached by 2027.
It’s a surefire way to attract consumer interest.
Check out our list of the top OTT platforms to help you decide which platform is best for your marketing and advertising strategy.
Spotify
Spotify is the leading audio streaming platform in the world. It allows millions of users to listen to their favorite podcasts, music, and videos on mobile devices or desktops. This is especially useful for businesses wanting to reach a niche audience worldwide.
Content- Spotify provides a lot of audio content through music and podcasts. It also offers video podcasts created by creators for those who want both an audio and visual experience. The majority of podcasts on Spotify are native content. This means that they were produced exclusively for Spotify and shared there. Most of the content is secondary. A second source, such as a music or podcast artist, created it.
Pricing Model- Spotify uses a hybrid pricing system. A free membership requires that listeners hear frequent advertisements throughout their listening session. Listeners who pay $9.99 per month for a premium subscription will not hear any ads.
Users- Between 2017 and 2020, Spotify’s monthly users grew from 173 to 356 million. Of that number, 198 are unsubscribed with ad-supported listening. This platform suits marketers who want to promote their products or services.
Audience Demographics – Spotify’s audience is young and global, with over 178 markets worldwide. , and more than 55% of users are under 35 years old.