The Advantages of OTT Marketing

ott marketing, digital ads, google display ads, programmatic video, programmatic radio

In 2021, the number of streaming subscriptions in the U.S. increased by 14%.

As the number of people utilizing streaming services as their main way of watching TV grows, so does the value of OTT marketing. But since it’s a newer form of marketing, many businesses are missing out on all of the advantages it offers.

But what is OTT marketing, and what makes it such a powerful tool? With so many different marketing strategies available why should you dedicate your resources to this one?

In this post, we’ll go over what it is and some of the many advantages you can expect from using it.

Keep reading to learn more!

What Is OTT Marketing?

Over-the-top or OTT marketing is when you send digital ads to specific, targeted consumers over the internet when they use streaming services or devices.

Examples of these services are Netflix, Disney+, Hulu, and Youtube Red, but there are many others as well.

Basically, anytime you watch something that is not traditional broadcast, cable, or satellite TV it is a part of the OTT market. This type of marketing can be really beneficial, especially when combined with the automation of programmatic video advertising

But why choose it over other advertising strategies such as programmatic radio, or google display ads? The following are just some of the advantages OTT marketing offers.

Reach More People

By using OTT digital marketing, your company will be able to reach more people. Because OTT marketing reaches people through streaming services, you don’t have to rely only on people watching their TV. These services can be used on a TV or a laptop, phone, tablet, and other devices.

In addition to reaching more people, you will also be able to reach younger people whose norm is using streaming services instead of cable. This is extra helpful if your business has a younger target demographic that you’ve been having trouble reaching.

Even though there are subscriptions that allow you to stream without ads, many people prefer to pay less for their subscription and in turn keep the ads.

Target More Specifically

Traditional TV commercials cast a wide net and may reach a broader audience, but with OTT marketing you can reach the right audience. Due to the data that is collected by streaming services, you can get very specific with who you target with your ads. 

You can determine who to show your ads to based on a laundry list of attributes. You can target based on people’s age, gender, location, and even their behaviors to name a few.

For behaviors, you can target by what time they typically stream, how long they watch for, how often they binge-watch, or which device they use the most. This information is helpful not only for deciding which ads to show who, but also when to show them.

One of the interesting features of OTT marketing is this ability to use addressable advertising. This makes it so that even if two people are watching the same show at the same time if one of them is a good match for your ad they will see it, and if the other is not they won’t.

People Are More Likely to Pay Attention

Due to the nature of advertisements while streaming, they are much better at holding viewers’ attention. This makes it more likely that viewers will actually watch the ad. Especially considering there is no channel to change during these ads.

With most basic or free subscriptions you don’t have the option to skip the ads. In addition to that, ads are shown in shorter groupings that only last roughly 90 seconds to 2 minutes. Unlike traditional TV advertisements that are usually shown in 4-minute blocks. Since you can’t skip the ads, and there is not usually enough time to get up and do something else, people are more likely to watch them.

Since there are fewer ads to watch, they are also less likely to get overwhelmed with information which means they will better remember what they see in the ad. 

Higher ROI

By investing in OTT marketing you will likely have a higher ROI. This means that you will earn more money for the amount you’ve invested as compared to a traditional TV commercial. 

One of the biggest contributing factors to this is that by having your ads targeted so well, more people who see the ad will wind up converting. This improves the ratio of money earned to money spent.

Another factor is that unlike traditional TV ads you can adjust the campaign at any time. So, if the data tells you something is not quite working you can change it and it will go right into effect. This helps to eliminate the inefficiencies of having to wait around for a network to pull an ad before you can change it.

Using OTT marketing with a retargeting strategy can also be majorly helpful in increasing your ROI.

Real-Time Data Collection

When using OTT marketing you have access to a significant amount of real-time data collection. You will be able to see clicks, impressions, click-through rates, and all kinds of other information. You can even further break down that information by demographic.

You will be able to monitor your chosen KPIs for the campaign immediately after you start sending an ad out. This will enable you to respond quickly to any problems or to any surprising data you receive. For example, if you notice that an ad is doing better in a different demographic than expected, you can easily switch to focus the campaign on them. 

This allows you to make quick, informed decisions, but you should be wary of making decisions too quickly. Some ads will take longer for their true results to become clear.

Begin Taking Advantage of OTT Marketing Today

From an increased ROI to actually getting people’s attention, the benefits of OTT marketing are clear. Don’t miss out on an opportunity to reach people where they are with your advertisements.

If you’re ready to dive into OTT marketing today, contact us for a free consultation

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