In this article, we’ll give an overview of OTT advertising, define some terms, and explain how online video ads and Amazon Streaming TV help businesses reach a wide audience with their messages.
First, what is OTT advertising? OTT ads, also known as streaming TV ads, are the advertisements delivered to viewers within this video content.
As more viewers turn to stream video content instead of conventional cable and broadcast TV, OTT, or streaming TV, ads present a chance for advertisers to reach new audiences at scale.
Read on if you’re interested!
Table of Contents
OTT Meaning and Definitions
As previously mentioned, OTT, or streaming TV, refers to any kind of streaming media content that is delivered over the Internet. It includes streaming services with paid subscriptions that let users access content instantly without using a traditional satellite or cable provider. Although viewers can watch OTT content on a variety of gadgets, including smartphones, gaming consoles, and tablets, connected TVs (CTV) account for the majority of viewing.
More people are streaming videos through connected TV as a result of cord-cutting, which is the practice of households canceling their cable or satellite TV subscriptions. In 2020, it was anticipated that over six million households would cut the cord, bringing the total number of cord-cutting households to 31.2 million. By 2024, more than one-third of all U.S. households, or 46.6 million, are predicted to be cord-cutting households. households.1 Brands have a fantastic opportunity to use streaming TV advertising in their media plans as a result of this.
In addition to cord-cutters, there are also “cord shavers,” who are minimizing their pay-using streaming services despite having TV plans. And then there’s a growing number of “cord nevers”—people who have never paid for premium channels or television subscriptions.
How Does OTT Marketing Work?
When delivered to television screens, OTT advertising functions similarly to other direct response media, with the exception of the immersive experience that is exclusive to television.
We delve into this further in the section below, but OTT advertising platforms like Brands can set up audience targeting, track who is watching an advertisement, and compare this to their other digital marketing initiatives with MNTN Performance TV (which only works on TV screens and not other devices).
It also works cross-device, meaning that the platform tracks users visiting your brand’s website after viewing OTT ads and serves relevant ads on web and mobile along their journey until they finally convert on your website.
In addition to tracking ad-side metrics like website visits and ad completion, MNTN Performance TV also offers well-known ROI metrics like ROAS, CPV, and conversion rate. These benchmarks are a critical component for measuring the success of your OTT campaign.
Benefits of OTT Advertising
My observation is that OTT advertising is very popular with marketers because it reaches viewers directly via streaming tools and services. These advertisements are seen by viewers on their gadgets, such as a connected TV (CTV), laptop, tablet, or smart TV.
These are a few of the explanations for my opinion that OTT advertising is popular at the moment.
Reaching a Targeted, Niche Audience
OTT services have the ability to focus on specific audiences, as opposed to traditional TV broadcasting, which must appeal to a wide audience. In comparison to traditional forms of advertising, using an OTT platform for advertising allows you to reach a more focused, niche audience.
You can retarget your audience using OTT, social media, audio ads, your website, and any other channel you use when you include OTT in your overall marketing strategy. Engaging your audience in your ecosystem can boost user activity across all channels.
Minimizing Ad Spend Waste
Your marketing budget can be stretched further and waste can be significantly reduced with audience targeting in OTT ads. They increase the likelihood that only individuals who are most likely to be interested in your brand will see your ads. In general, I’ve discovered that OTT advertising reduces the likelihood of wasting time or resources on prospects who won’t ever buy your product.
Is OTT Advertising Effective?
We devoted an entire content series to this subject, contrasting the performance of OTT advertising with that of well-known programmatic players like YouTube, Demand Side Platforms (DSP), Linear TV, Display-Only, and Video Ads.
Apart from the inventory, tracking, measurement, and overall experience benefits – attribution is a priority for performance marketers and they should be wary of how this is measured on other OTT ad platforms.
A legitimate performance marketing channel should be as transparent as possible, and MNTN Performance TV meets this need with its precise attribution capabilities via its patented Cross-Device Verified Visits feature.
Cross-Device Verified Visits is our proprietary technology that measures any user visits to your site following the guaranteed in-view display of your ads, in a window of time defined by you. This means you’ll be able to track how long someone views your OTT advertisement and what device they use to convert. Additionally, it ensures that your advertisement was the one that first started the sales journey because it only gives credit if the original advertisement was seen all the way through.
Best Practices for OTT Ads
Make sure your ads are pertinent to your audience if you’re going to advertise on OTT services. Here are some rules to remember.
Keep Them Short
How often do you watch a one-minute commercial? Not often unless you are familiar with the brand and the advertisement and know it will be entertaining. Many people skip ads on OTT as soon as the “skip ad” button shows up. As a result, make your advertisements concise. They must not last more than 30 seconds. Even better are fifteen seconds.
Pay Attention to Formatting
Your advertisement might look amazing on a large screen, but how does it appear on a smartphone? Ensure that your advertisement is formatted to work on TVs, laptops, tablets, and smartphones.
Make Your Ads Relevant
For your audience, OTT ads need to be current and pertinent. Spend some time getting to know your audience before you start so you can design a tailored experience that will foster trust and convert viewers into customers.
How to Buy OTT Advertising?
Due to the fragmentation of platforms and the variety of business models used to distribute inventory, accessing OTT ads can be challenging for newcomers as well.
In general, programmatic and guaranteed IOs (insertion orders) are the two methods brands use to purchase OTT advertising.
- Guaranteed IO (insertion orders) buys are set-priced, set impressions, usually based on reach and frequency.
- Data-Driven Programmatic buys are based on a real-time bidding environment that allows the advertiser and the agency to maintain control of targeting but does not guarantee set impressions or frequency.
OTT Advertising Cost
A great way to reach viewers who are switching away from traditional linear television in a more cost-effective way is through streaming TV advertising on OTT platforms. The number of businesses that can participate in traditional TV advertising is significantly reduced by the high upfront investment required.
On the other hand, OTT ads can be purchased on a month-to-month basis, giving users the freedom to spread out ad dollars across multiple campaigns seeking different outcomes.
Additionally, when it comes to targeting particular audiences, OTT advertising is far more effective than cable TV advertising. It’s simple to understand why performance marketers are shifting their ad spend to Connected TV because the targeting options and conversion tracking go far beyond the simplicity of linear.
OTT Vs CTV Advertising
These words can refer to the same thing and are frequently used interchangeably in the industry. But the main difference is, OTT streams content across all devices such as mobile and desktop, whereas Connected TV serves to TV screens.
Visit the blog post below for a more thorough introduction of CTV.
The Bottom Line
I’ve seen businesses of all sizes use OTT advertisements to reach their audience in unique and imaginative ways.
To interact meaningfully and personally with your audience, think about incorporating OTT advertising into your marketing plan.