You’ve probably heard of “OTT” or “over-the-top” advertising and may be wondering if it’s the right move for your business. In this blog post, we’ll explore X key reasons why OTT advertising may be a great fit for you.
What is OTT?
OTT refers to any form of digital content that is streamed over the internet, without the need for a traditional cable or satellite TV subscription. This includes streaming services like Netflix, Hulu, Amazon Prime Video, and more.
OTT offers a more targeted approach than other advertising mediums.
With OTT advertising, you have the ability to target consumers based on various factors including age, gender, interests, geographic location, and even devices used. This level of targeting ensures that your ad reaches the right people, which is essential for driving conversions.
According to a recent report from eMarketer, there are now over 180 million OTT users in the United States alone—and that number is only going to continue to grow. So, what does this have to do with advertising? Well, OTT platforms offer advertisers a unique opportunity to reach their target audiences through targeted ads.
How Does OTT Differ From Other Advertising Mediums?
Other advertising mediums—such as television, radio, and print—rely on mass media to reach their audiences. This means that businesses have no control over who sees or hears their ads. As a result, they end up wasting a lot of money advertising to people who will never be interested in their products or services.
With OTT, businesses can use targeted advertising to reach their specific target audience with precision. This means that you no longer have to worry about wasting money on ads that no one will ever see. Instead, you can focus your efforts on reaching the people who are actually interested in what you have to offer—which will save you time and money in the long run.
OTT Reaches a Wider Audience
Traditional television advertising is still widely used but OTT advertising has been on the rise in recent years. More and more people are “cutting the cord” and ditching their cable providers in favor of cheaper and more convenient streaming services. This shift in viewing habits presents a unique opportunity for business owners who want to reach a wider audience with their advertising efforts.
OTT allows you to target your ads to a specific audience.
With traditional TV advertising, your ad will be seen by whoever happens to be watching that channel at that time. But with OTT, you can target your ad to people based on things like age, gender, location, interests, and even household income. This ensures that your ad reaches the right people—people who are actually interested in what you have to offer.
OTT ads are less expensive than traditional TV ads.
With traditional TV advertising, you have to pay for airtime on popular channels that charge high rates. But with OTT advertising, you only have to pay for the ads that are actually seen by people—and you can set your budget beforehand so you never overspend.
OTT ads are more effective than traditional TV ads.
Studies show that people who see an OTT ad are far more likely to remember it and take action than those who see a traditional TV ad. This is likely due to the fact that OTT ads are more targeted and less obtrusive than traditional TV ads—people actually want to see them because they’re relevant to their interests.
OTT ads are less intrusive than other forms of advertising.
Have you ever been watching your favorite TV show only to have it interrupted by a commercial break? It’s annoying, right? Well, with OTT ads, viewers have the option to skip ads if they want to. This non-intrusive approach to advertising is more likely to result in viewers paying attention to your ad since they have the choice to watch it or not.
Less Intrusive Means More Engaged
When an ad is less intrusive, people are more likely to pay attention to it. That’s because they’re not being bombarded with messages from all directions; instead, they can choose to pay attention to the ad or not. This leads to higher engagement rates and more positive brand associations.
More Precise Targeting
With OTT advertising, businesses can target their ads more precisely than with other forms of advertising. That’s because OTT platforms like Roku and Amazon Fire TV offer detailed demographics data that businesses can use to narrow down their target audiences. As a result, businesses can be sure that their ads are being seen by the people who are most likely to be interested in them.
There is Better ROI with OTT
When done correctly, OTT advertising offers a better return on investment than other forms of advertising. That’s because you’re able to reach your target audience with laser precision, making it more likely that they’ll take the desired action (e.g., make a purchase). In addition, OTT ads are less expensive than traditional TV commercials and have the potential to reach a larger audience.
As mentioned, you get Increased Engagement with OTT
OTT advertising also offers increased engagement when compared to other types of advertising. This is because OTT ads are highly personalized and relevant to the individual viewer. Additionally, they are not forced on the viewer like other types of ads—the viewer chooses to watch them. This makes them more likely to pay attention to and remember the ad, which leads to increased brand awareness and eventually, sales.
OTT ads are cost-effective.
Since OTT platforms like Roku offer ad space on a CPM (cost per thousand) basis, you only pay for ad space that is actually viewed by users. This makes OTT a very cost-effective way to reach your target audience without breaking the bank.
You can track ROI with OTT ads.
Along with traditional forms of advertising such as television and radio, companies are now utilizing over-the-top (OTT) platforms to reach their target audience. What sets OTT apart from these other methods is the level of detail it provides in terms of the effectiveness of your ad campaign. Unlike running an ad on a website or magazine where tracking return on investment can be difficult, OTT platforms offer insight into metrics like ad completion rates and click-through rates. This transparency allows businesses to adjust their strategy and focus their spending on what works. In addition, this data also includes demographics of who is viewing the ad, allowing for more targeted and personalized advertising. For any company looking to invest in advertising, considering OTT options with detailed insights is crucial for campaign success.
OTT advertising is growing at a rapid pace.
As more consumers turn to streaming services for their entertainment, advertisers have begun shifting their focus towards over-the-top (OTT) advertising. This form of advertising delivers commercials through streaming platforms, reaching a targeted audience based on their viewing habits. Advertising through CTV is expected to explode in the coming years, with spend reaching $10 billion by 2022. Getting in on this trend now can give businesses a competitive edge as OTT advertising continues to grow in popularity. Websites such as Hulu and YouTube offer opportunities for companies to place ads within their content, reaching a wide range of potential customers. By incorporating OTT advertising into their marketing strategy, businesses can effectively target and connect with the increasingly cord-cutting consumer population.
As you can see, there are many reasons why OTT may be the right choice for your business when it comes to advertising. From its targeted approach to its cost-effectiveness, there are plenty of advantages that make OTT worth considering as part of your overall marketing strategy. Have you tried OTT advertising? If so, what was your experience? Let us know in the comments below!
OTT advertising is quickly becoming the new standard for video advertising—and for good reason. OTT allows you to target your ads to a specific audience, it’s less expensive than traditional TV advertising, and it’s more effective at driving results. If you’re looking to reach a wider audience with your advertising efforts, OTT is the way to go.
If you are looking for a new channel to broaden your brand and increase message to a prospective audience, reach out to Mixed Media Ventures, call us at 732.860.2767, or schedule a discovery consultation here, and we can chat with you about whether or not an OTT strategy might be right for you.