No two ads make the same impact. Some ads deeply engage viewing audiences while others fall flat. OTT advertising has quickly become essential to maximizing the impact of ads. This medium will continue to gain momentum, potentially becoming an unstoppable force that surpasses cable and other marketing channels in terms of both engagement and return on investment (ROI).
A Look at OTT Advertising
What is OTT? OTT is an acronym used to refer to over-the-top media service. OTT advertising is best described as a digital advertising medium that makes the most of OTT platforms. This form of advertising empowers business owners to extend their brand’s reach to target audiences through streaming video to zero in on a specific demographic or market through a litany of OTT channels.
In short, advertising through OTT is an invaluable opportunity to heighten target audience engagement. OTT technology provides a plethora of channels for engagement while simultaneously bolstering the all-important ROI that drives bottom-line expansion.
Why is OTT Advertising on the Rise?
OTT subscriptions are rapidly increasing with each passing year. Data shows OTT subscriptions have increased from 0.7 to 1.03 per person throughout the United States. In other words, the average person living in the land of the free and the home of the brave has more than one OTT streaming service.
The aggregate number of subscriptions to video on demand will likely continue to surpass the total number of people living in the United States far into the future. To put it bluntly, businesses that are not yet advertising through OTT channels are missing out on a golden opportunity.
OTT advertising is on the rise for reasons beyond the ever-increasing popularity of streaming video content. OTT platforms make use of analytics, sometimes powered by artificial intelligence to present advertisements directly to segments of audiences, boosting engagement, and movement through the sales funnel and conversions.
This advertising approach is all about zeroing in on the optimal group of customers rather than merely attempting to cast as wide a net as possible as is often the case with conventional TV advertising. Strategic segmentation followed by an analysis of advertising results empowers business owners and managers to zero in on those most likely to respond to such ads and ultimately drive conversions.
OTT platform advanced user analytics reach beyond mere demographics. Everything from viewer device preferences to viewer locations can be analyzed for a more focused and effective advertising effort. The most successful business owners and managers zero in on the nuances of these parameters, modify their OTT ads accordingly and ultimately achieve the desired results for a fraction of what it costs to advertise through conventional commercials aired on cable or network TV.
If you are still on the fence as to whether it is better to advertise on OTT platforms or conventional TV, consider the fact that most people jump between channels when using cable TV in an attempt to bypass commercials and maximize the time spent enjoying programming. Streaming devices do not provide viewers with such an opportunity as they are not empowered to return to the program after a commercial airs.
The bottom line is few people are willing to alternate between streams as doing so is inconvenient. As a result, the advertisements that air on OTT platforms are typically viewed in their entirety. In fact, a study analyzing TV viewership statistics shows nearly 100% of streaming video viewers watch the entirety of an ad.
OTT Advertising Makes Economic Sense
OTT ad pricing isn’t nearly as high as that of cable TV. OTT ad spaces are typically sold on a cost-per-thousand impression basis or CPM for short. Impressions are determined by frequency or reach, meaning viewers are empowered to select a programmatic approach when the platform puts ads before the specified target audience.
OTT advertising ensures the business only pays when the target audience views the ads, ultimately maximizing the efficiency of the marketing campaign while keeping costs to a minimum. This is the economic efficiency every business needs to maximize the impact of its marketing budget.
Unparalleled Advertising Flexibility
OTT ad campaigns are as flexible as it gets. Choose OTT for advertising and you won’t be forced to lock into a contract. Rather, you can launch, pause, and resume your OTT ad campaigns when desired.
Such flexibility empowers you to manage ads and settings as desired on the fly, setting the stage for optimal results at a minimal cost. Tinker with your campaigns, test out different approaches, and take full advantage of OTT flexibility and you’ll hike conversions all the more.