What Is OTT Advertising?


What Is OTT Advertising?

OTT, or over-the-top advertising, is changing how the digital marketing world works. The days of cable TV commercials are almost over, and marketers aren’t surprised. That’s because online-based video streaming solutions are becoming popular, disrupting traditional cable TV.

Today, people watch movies, TV shows, music videos, and news on the web. They use smart TVs, game consoles, and even streaming boxes to access online content.

There is a high chance that you watched your favorite TV shows and movies on Netflix or Hulu while streaming YouTube for funny content all week without turning on cable TV.

The world of over-the-top advertising is very close to us, yet very far away. While we stream all our media content over the internet, most people don’t know what OTT is.

Read below to understand more about OTT advertising:

What Is OTT?

OTT is an acronym for “Over the Top.” Here is where the name comes from: people called cable boxes “set-top boxes” in the past. This is because televisions were huge and bulky, and cable boxes were placed on top of the TV. And even with the invention of flat-screen TVs, the name still remained even though cable boxes were placed on different surfaces.

Streamed media content does not need a cable box. This is because it’s delivered from the internet. Hence, it’s called over-the-top because it bypasses the set-top boxes used in the past.

Also known as “streaming TV,” OTT is the streaming of media content over the internet. This includes a subscription-based service like Netflix, where a consumer can easily access any content they need without passing through cable providers and traditional satellites.

You can watch OTT content on different devices such as smartphones, iPads, tablets, gaming consoles, and internet-enabled computers.

Households are increasingly canceling their subscriptions to cable TV, a step known as “cord-cutting.” Experts estimated that over 6.6 million households cord-cut their cable connections in 2020, with this number estimated to keep growing by 2024. 

This change has given brands a great chance to use OTT advertising in their marketing plans.

Types of Adverts You Can Use on OTT Media Services

OTT media services are very different from traditional TV advertising. That’s because all streaming services online use different technologies. This means they offer varying ways to serve users’ adverts.

All these streaming services come with different drawbacks and benefits, unique to the platform you’re using. Today, one of the most popular advertising models in the OTT world is Ad-supported Video-on-Demand (AVOD).

An excellent example of this is YouTube, where viewers can watch their favorite content without a subscription. The platform also includes advertisements before or in the middle of the content.

Below are the four types of ads that you can find on OTT platforms:

Programmatic Ads

A programmatic advertisement uses automated and data-driven systems to deliver users’ adverts. The platform targets users based on the type of content they watch and the data they generate on the platform. Users often associate these types of ads with their streaming experience.

These ads are highly targeted and use granular details about users to maximize the advertisers’ resources. A programmatic ad offers a high-level personalization experience for users. That’s because they show users advertisements for things they need or want.

Unfortunately, very few OTT advertising platforms embrace programmatic ads. While they may not offer this ad tool to the brands they work with today, it’s reported that OTT platforms will embrace programmatic ads in the next few years.

Connected TV Adverts

This is a new type of OTT advertising that uses data to determine the types of ads users will see. Connected TV adverts collect data from different devices connected to one network. Then advertisers use this information to influence ad display.

When using a connected TV advert, the OTT platform may show content based on the user’s profile. For instance, an advertiser may notice that a user with a Samsung smartphone also has a PlayStation 5 on the same network. They could use this information to enhance the user’s ad experience in several ways.

Either they could send the same advertisement to both devices or create separate ads that address the specific needs of each user. This is a genius way to advertise to users, especially if these devices don’t belong to the same individual.

Automatic Content Recognition Adverts

This advert is shown to users based on data collected about what they are watching. The advertiser uses software to recognize the type of content people are consuming. This ensures that the ads shown to users are valuable to them in real-time.

The advertiser creates ads targeting viewers who consume a specific type of content. For instance, if you are watching videos about meal prep, the advertiser could bring you meal prep services near you. This type of advertising has an immediate value to the viewer.

This is often used by streamlining platforms that also offer search functions. Hence, making it easier for companies to respond to their target consumers’ searches. This works in the same way Samsung smart TVs and Google Ads do.

Additionally, the advertiser could use this method to create many versions of the same advert. Different audiences have varying needs.

Hence, variations of the same message could appeal more to some audiences than others. This allows for ad personalization, attracting more customers.

Addressable TV Advertisements

This is an ad strategy that networks use to display ads to different users watching the same content. Generally, these ads work in the same way as traditional TV ads do. The only difference is that the ads are segmented based on their target audience.

Advertisers use any valuable data they can access to show their users different ads. For instance, they could advertise a local business to viewers in that geographic area. In the same way, the advertiser could target older people based on the products they are promoting, too.

Are You Ready for OTT Advertising?

OTT is a new trend in the business marketing world. This trend isn’t slowing down any time soon. Businesses can now use OTT to advertise their products and services and make their brands more well-known.

If you are looking to get started with OTT advertising, contact Media Shark today. We have a team of highly experienced experts ready to help you. Edit Article  Approve Article 

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