Chanel spends over $33 million in the advertising landscape, including programmatic OTT. You’re missing out on many potential customers if you’re not using it in your marketing strategy. OTT uses internet-connected devices to deliver targeted content to consumers.
This means that it’s more targeted and personalized than other traditional strategies. OTT is more affordable and helps you reach a wider audience. For more insight into its benefits, keep reading to learn more.
Attain Large Audiences
In 2020, the total number of U.S. homes with cable or satellite declined by 7.5%. Many viewers have moved their media consumption towards internet-connected gadgets. This implies a treasure mine of clients waiting for marketers on the OTT side, and they are here to stay.
Need evidence of OTT’s dominance over current audiences? Let’s examine some data on the rising number of viewers on these platforms:
More CTV Owners
Have you ever seen an Apple TV, Roku Stick, or Chromecast Device? These are CTV devices, which link televisions to the internet and OTT streaming services. In 2013, over 80 percent of U.S. households had a CTV, up from 54 percent five years before.
Streaming Users Increase
Approximately 82% of U.S. consumers now subscribe to at least one OTT video content provider. The average time spent on OTT video will be more than 62 minutes per day this year.
Not only that, in 2020, 6.6 million viewers will cancel their satellite or cable TV subscriptions. The drastic decline decreased viewers by 7.5%, a trend that is anticipated to continue across TV audiences. Traditional TV advertising time slots are losing value in comparison to OTT ads.
18 to 34-year-old consumers have reduced their traditional television viewing by 23.4%. 12 to 17-year-olds are the first group for whom CTV’s streaming material is more successful than regular tv.
More Ad Services
In 2020, ad-supported streaming services increased by 9 percent. In another realm, ad-free services increased by just 5 percent.
What does this mean? Consumers prefer to pay less for a subscription, even if they have to watch ads.
Television ads are a “wide-net” marketing technique. Your ad campaign will be seen by significant portions of the population. However, the audiences are too diverse for a single ad to catch their attention.
OTT content helps marketers profit by filtering based on demographics and interests. They can filter on:
- Income Level
- Duration of device usage
For instance, a 17-year-old boy and a 32-year-old woman may watch Bob’s Burgers. They may watch the same show or movie, but they will see different ads. The woman will get content on the cruise package and the boy will get game console ads.
Use Better Data Analytics
Many web-based platforms with OTT provide advertisers with access to comprehensive data analytics. This helps them target particular populations and demographics. Here are the following data points that only OTT advertising can provide:
Track Consumer Behavior
How long does the average viewer watch a 30-minute comedy program? What time do they watch romantic movies? What device do they use the most? OTT stores these information in their system.
You want to understand your target audience’s behavior. That way, you will place the appropriate advertisement in front of them at the right time.
With traditional tv ads, the only feedback you will get is viewer location and if the screen remains on. But with OTT, you can gather a plethora of data to enhance your campaigns.
You will see the proportion of viewers who saw the whole commercial. You can also track click-through rates, age, ethnicities, and gender.
Obtain Greater Audience Focus
With the arrival of TiVo, it has never been easier to avoid television advertisements. During TV ad breaks, people without recording equipment can change the channel. Because of technological advancements, television advertising has become obsolete.
OTT commercials have a few distinguishing characteristics that ensure their continued relevance. Here are some ways in which OTT advertisements stand out:
Viewers can avoid ads by fast-forwarding TiVo and changing channels. Users cannot fast-forward through advertisements on OTT services. The digital format makes it hard to switch programs without losing your place.
Since customers can access OTT services on various devices, you can target ads more than once. After all, more views mean more desired replies. this principle is known as “effective frequency.”
Every commercial break on television ensures five minutes of pure advertising. On OTT services, ads are much shorter and are often shown during intervals of no more than two minutes. This may help consumers recall advertisements and continue watching them.
Unlike TV advertising, OTT ads can micro-target viewers’ interests. This increases the likelihood that they will remember what they see.
72 percent of OTT users could remember a particular advertisement when questioned. 47 percent of ad-supported OTT viewers saw advertisements as “helpful or pleasurable.”
Increase Consumer Interaction and Activity
Interaction is one of the most distinctive advantages of OTT advertising. With OTT advertising, viewers can:
- Click on links
- Complete surveys
- Open a new page to find a product or service
This degree of involvement results in a quicker route to consumer action. Unlike traditional tv commercials, viewers can toggle the screen on and off.
Customers Actively Seek Information
With the internet at their fingertips, OTT viewers can do product research. This is ideal for inciting consumer action, such as buying or perusing a seasonal sales page.
40% of consumers stop the OTT advertising to learn more or even buy the advertised goods. 65% of second-screen users (those with many Internet tabs open) seek product information.
Excellent Click-Through Rates
If you look close, you will notice that all YouTube ads have a clickable link. For viewers, clickable advertisements eliminate the “middleman” search step. Unlike TV viewers, OTT viewers do not need a second device to research a product.
They can click the ads for further information. It is more efficient, straightforward, and trackable than TV-based ad traffic.
OTT Advertising: A Market That’s Growing for Advertisers
OTT is a powerful tool that helps get your message in front of a targeted audience at an affordable price. By using this strategy, you can reach a larger audience with your ad spend and get more bang for your buck. Why not use your ad space wisely with programmatic video ads?
If you’re ready to capture more leads and improve your marketing strategy, we can help. Contact us today for more insight on taking your business to the next level.