What Is OTT Advertising? OTT advertising is a relatively new phenomenon, and many marketers are still unsure of how to use it effectively.
With OTT you can target your audience directly within their living rooms. This means that you no longer have to worry about the clutter on TV or digital ads being viewed alongside your content.
The best thing about OTT advertising is its performance-based targeting options, which allow for unparalleled precision in reaching your desired audience. Unlike other forms of media, such as print or outdoor ads, with streaming platforms like Hulu and Netflix, brands can now run campaigns based on specific demographics (age range), interests (sports fans) or behaviors (binge-watching). Because they demand less money invested per impression to produce results, these highly-targeted ad units will assist boost the efficacy of your campaign while also enhancing ROI.
What is OTT Advertising?
Over the top, or OTT refers to services such as Netflix and Amazon Prime Video. TV viewers can stream content from these OTT providers directly to their TV with apps like Netflix and Amazon Prime Video without requiring an internet connection or streaming device (e.g., Firestick or Roku).
Why Are Brands Investing In OTT Video?
In recent years, OTT video has become more popular.
OTT video viewing is increasing in almost every market across the world. The following number of people who actively stream this type of content has also increased:
- In the US, 58% of adults stream videos from OTT providers.
- In Germany, 70% report using OTT video content regularly.
- Over half of young people in Japan watch web videos every day. OTT applications installed on multiple devices by 98 percent of all smartphone users in China. The rapid growth of smartphones and mobile devices has driven the popularity of OTT video platforms.
Pre-rolls, banners, and native adverts are examples of OTT advertising. Advertisers can purchase ad spots in live videos, on-demand content (such as movies), or on social media platforms such as YouTube or Facebook. With the recent surge in popularity of over-the-top (OTT) advertising, firms who were previously confined to traditional broadcast advertising now have a far more realistic choice.
OTT video may be used for a wide range of marketing and sales efforts.
Marketing initiatives of OTT advertising include:
- Audience targeting: OTT provides the ability to target an audience that you know is interested in your product or service. For example, if a baby goods brand wants to reach women who are expecting a child, an OTT ad delivering on-demand video content can do just that.
- Cross-platform marketing: Because OTT works across various devices, the ads you design can be seen by a wide range of people. This feature allows brands to target customers who are viewing on computers, televisions, and mobile phones.
- Targeting consumers at specific moments: Because brands can serve ads based on location or demographics, they have insight into what viewers are watching.
- Personalization: Viewers are able to skip an ad after 5 seconds. If customers opt not to skip the ad, the business has the ability to provide them with a more personalized experience. For example, McDonald’s recently released their ‘Lovin’ Beats Hating’ campaign encouraged viewers to submit loving messages through social media.
Where are OTT Ads Displayed?
Over-the-top material is available on a range of devices and streaming platforms, all of which accept advertisements. Smart TVs (which may also be watched on-demand), PCs, mobile devices, and tablets are all examples. OTT platforms include the following:
- Smart TVs: For those who prefer to watch TV content through their set-top box, apps like Netflix and Hulu allow advertisers to serve video ads directly on the home screen or during other commercial breaks.
- Streaming Services: Companies like Netflix, Hulu, and Amazon Prime Video are the most popular streaming services. Crackle, Mubi, and Pluto TV, on the other hand, are firms that deliver internet-based programming.
- Mobile Devices: Brands are increasingly advertising on live mobile video applications that may be accessed via smartphones or tablets. Facebook Live videos and live video streaming applications like Periscope and Meerkat are examples.
- PCs: Brands may advertise on social media platforms like YouTube and Facebook, which both accept pre-roll advertising when it comes to watching OTT videos through a computer.
OTT Advertising Platforms
The following platforms can be utilized to offer OTT advertisements:
TV Networks: Video advertising is the most effective way for many brands to advertise on TV. This is because it provides them with a captive audience that is less inclined to change stations during ad breaks. Because the networks that provide this sort of material are often free-to-air, OTT advertising spots are typically less expensive than conventional TV possibilities.
Video Networks: There are firms that specialize in broadcasting videos through IP networks, and not all video information needs to be transmitted through a television set. For example, YuMe works with brands like Johnson & Johnson and Volkswagen to deliver their ads on internet-based channels such as YouTube.
OTT Advertising Costs
OTT advertisements can be purchased from a variety of sources, including traditional TV networks and internet video channels. The cost of advertising varies based on a number of factors, including the network or platform you choose and the size of your target audience. For example, according to a Nielsen survey, the average CPM for OTT advertisements was $25.10.
How Do You Buy OTT Ads?
Advertising on OTT platforms can be accessed through multiple companies, Traditional TV broadcasters and online video networks are among the organizations that offer advertising on OTT platforms. AOL, Brightroll, Hulu, JW Player, LiveRail, SpotXchange, and YuMe are some of the most popular online ad networks for OTT commercials.
ABC, The CW Network, Comcast, FOX, and NBC are among the traditional TV networks that can advertise on over-the-top services. These firms sell their OTT advertising inventory either directly or through a specialist firm like Alphonso, which specializes in delivering advertisements for brands that run across many platforms.
OTT Advertising’s Challenges
One challenge that brands face when advertising on OTT content is viewability. Viewability is one issue that businesses confront when advertising on OTT content. Although it’s not always evident if a customer has seen an ad, this information may be used to negotiate the price of an OTT campaign. According to a Nielsen survey, over half of video advertising (44%) are never viewed by viewers, with 14% being seen for less than one second.
To combat this, the IAB has prepared viewability guidelines that are now being debated by its members. They include guaranteeing that an ad remains on-screen for at least two seconds and allowing customers to avoid advertising after five seconds (or three seconds if the viewer does not engage with it).
Best Practices for OTT Video Content
Even if you choose to work with an ad network, it’s also important that you Even if you decide to work with an ad network, you should be aware of the best practices for developing video content. This comprises:
- Keep your adverts short: shorter videos get more views than longer ones (6-10 seconds vs. 15-20 seconds). According to a study done by runtastic.com, shorter films had greater skip rates.
- Target advertisements based on geography: In addition to demographic targeting, you should consider adapting your video content for certain areas, as some ad networks only allow regional OTT advertising.
- Call to Action: Even if viewers don’t sign up for a subscription, you should always include a call-to-action that encourages them to visit your website or download your app.
- Data Caps: Because not all OTT platforms allow you to track data regarding the effectiveness of your video ad, it’s crucial to find out what data is accessible before investing in a marketing campaign.
For Advertisers, What Does the Future Hold?
OTT video is becoming a combination of broadcast and internet video streaming services in many ways. Live events are a perfect fit for over-the-top advertising. Brands may interact with the live audience watching their favorite team or concert, while also reaching out to new consumers who are interested in this sort of live event.
Furthermore, many displays and web connectivity expand the number of ways to contact viewers with interactive advertisements. Your demographic is no longer defined by the device you use to watch videos.
Here are some examples of how marketers may reach their target demographic using OTT ads:
Advertisements for buyers who view on-demand films at home might include interactive elements like games or product catalogs.
For example, a fashion apparel brand’s advertisement may allow consumers to digitally “try on” things from the product catalog before making a purchase.
Advertisers may take advantage of the popularity of large-screen TVs by targeting advertising to gamers who view material on their consoles, as well as users who watch videos on their mobile devices. Interactive adverts on these screens may help firms raise awareness and generate visitors to their websites in both scenarios.
What Is Next For OTT?
Many companies and marketers are still learning about OTT advertising as they look for the most efficient strategy to reach their target audience. OTT provides a chance to put more money in your pocket by reaching more of the appropriate individuals for marketers seeking for a simple solution with a huge return.
Interactive advertising is used to increase brand recognition and sales among customers. As online video viewing grows more common in the next years, marketers will continue to experiment with innovative OTT advertising tactics.
