In an era where traditional TV is rapidly losing ground, Over-the-Top (OTT) streaming has emerged as the new frontier for advertisers. With millions of viewers cutting the cord, OTT presents an unprecedented opportunity to reach engaged audiences in ways never before possible.
Over-the-top (OTT) refers to delivering streaming content—such as video, audio, and messaging—directly to consumers via the internet, without traditional cable and satellite services. Platforms like Netflix, Hulu, and YouTube TV are prime examples, as are free ad-supported services like Pluto TV and Tubi.
Why OTT Advertising Works
OTT advertising offers unique advantages, as compared to traditional TV:
Precise Targeting: Advertisers can tailor content based on zip code, demographics, and viewing habits, allowing personalized ads even within the same household.
Enhanced Engagement: Many OTT ads are non-skippable, leading to higher completion rates. Verified Completion Rates (VCR) for OTT ads exceed 80%.
Data-Driven Insights: OTT platforms provide detailed performance metrics, enabling real-time A/B testing and swift content adjustments.
Cost-Effectiveness: OTT advertising often offers a lower cost per thousand impressions (CPM) compared to traditional TV, allowing advertisers to stretch their budgets further while reaching more targeted audiences.
The Rise of Cord-Cutters and Cord-Stackers
The OTT landscape is largely shaped by cord-cutters - consumers who have cancelled their traditional cable or satellite TV subscriptions in favor of streaming services. This growing demographic is driving the shift towards OTT platforms:
Cord-cutters tend to be younger, tech-savvy consumers who prioritize flexibility and personalized content.
They are often more receptive to targeted advertising, as they understand it supports the free or lower-cost content they enjoy.
This audience values convenience and is more likely to engage with brands that respect their viewing preferences and offer relevant messaging.
However, it's also important to note that many OTT users are "cord-stackers," maintaining both traditional cable/satellite subscriptions and multiple streaming services. This broader audience includes a wide range of demographics and income levels.
Starting an OTT Advertising Campaign
For marketers looking to venture into OTT advertising, consider the following steps:
Define Your Objectives: Determine your campaign goals, whether it's brand awareness, lead generation, or direct sales.
Identify Your Target Audience: Pinpoint who you want to reach, considering factors like demographics, interests, and viewing behaviors.
Select Appropriate Platforms: Choose OTT services that align with your target audience's preferences.
Use Targeting Capabilities: Use the precise targeting features of OTT platforms to reach specific audience segments.
Monitor and Optimize: Regularly review performance metrics to assess effectiveness and make necessary adjustments to improve outcomes.
OTT Service Providers
The Trade Desk and ZypMedia: Called demand-side platforms (DSP) that provide targeted OTT advertising solutions for brands and agencies.
CTV (Connected TV) Platforms – Providers like Roku OneView, Hulu Ad Manager, and Amazon Fire TV Ads offer direct OTT ad placements.
Simpli.fi – A programmatic advertising platform with strong OTT targeting and campaign optimization capabilities.
MNTN – A performance-driven CTV ad platform, particularly focused on direct-response marketing.
Advertisers can craft OTT campaigns that resonate with a tech-savvy, convenience-oriented audience who are receptive to well-targeted, non-intrusive advertising.
Embarking on an OTT advertising campaign requires a strategic approach, but with the right planning and execution, it can significantly enhance your brand's reach and engagement in today's digital-first media environment.
Time to go Over-The-Top!
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