As more and more consumers shift to streaming television, new strategies and platforms are rising to meet the challenge and provide a robust marketing channel as powerful as traditional broadcasting. That paradigm-shifting technology is over the top (OTT) advertising. Shifts in consumer behavior have made OTT advertising essential, but marketers still have many questions.
What Is Over the Top Advertising (OTT)?
OTT ads are streaming ads that play over or intermittently throughout streaming television programs. You'll find OTT ads before YouTube videos, throughout Hulu and other subscription television services, and even before many online news videos.
OTT ads are replacing, or at the very least significantly supplementing broadcast ads on traditional satellite and cable television. OTT ads and standard video ads may look the same; the device may change, and the call to action may ask viewers to tap the screen instead of calling a phone, but the ads are virtually identical to the consumers' perspective.
On the backend, however, the two ad types are very different. Advertisers can use OTT platforms to cast a wide geographic net and zero in on viewers with certain demographic attributes and interests. Because online video platforms provide feedback about who is watching what, advertisers can more tightly align their campaigns and understand how viewers interact with their ads when they'd otherwise have to guess with traditional ads.
What Are the Benefits of OTT?
OTT is a channel that offers real advantages over broadcast channels that allow advertisers to streamline campaigns, create more resonant messages, and focus on profitable target markets.
Some of the key benefits of integrating OTT into your marketing mix include:
- Ease of Reach: Audiences can easily be exposed to your ad campaigns; they just need an internet connection and a watchable device.
- Variability: Streaming television is virtually endless. YouTube alone hosts more new content each day than anyone could ever watch. Different platforms across the internet have different types of content, and because of that, you can build robust buyer personas that include details about their preferred content and platforms to reach only the markets you want.
- Analytics: The back-end possibilities that OTT ads present are a game-changer. OTT advertisers can see what ads are being watched, what responses they're eliciting, and how active viewers are watching them. These data points allow you to understand your audience better and focus on the most valuable audiences.
All of these benefits add up to one core business benefit: you have more control over who sees your ads (and when), so you can ensure you get the best possible ROAS per view.
What Is Connected TV (CTV)?
Connected TV is a vital component of streaming services. It refers specifically to premium content viewers watch through an OTT device or smart television. Think of OTT as the actual mechanics of streaming and streaming ads as an additional (or "over the top") media. CTV is the device that connects to the internet and displays the content.
Is OTT a Good Choice for Digital Advertising?
OTT is quickly becoming an essential component of any business's marketing strategy. Whether you're growing your audience across a wider geographic area or you want to increase ad frequency for certain buyers, OTT advertising gets your message to them in the most engaging format of all: video.
What Is the Cost of OTT Advertising?
Costs for OTT campaigns can vary wildly depending on the platform(s) you're using, the length of your ads, and the popularity of your audience. It can also change based on the value of your keyword or niche. The cost of OTT is per impression or ad view, meaning marketers pay only if a viewer watches the ad! On average, OTT ad costs fall in the $30 to $40 CPM range (cost per 1,000 impressions).
Who Can Help Create an OTT Marketing Campaign?
Managing OTT marketing campaigns gets complex quickly. A huge flow of data is coming in whenever you release ads or log onto an OTT dashboard. If you want to ease your way in or ensure you're getting the best results, look for a media company specializing in digital marketing and has experience in your industry.
Choose WNEM Marketing for Easy OTT Campaign Management
At WNEM Marketing, we specialize in providing access to WNEM TV 5, Michigan's most innovative television station. See how we can help you find the perfect mix of digital advertising, OTT ads, and traditional broadcast ads, so you reach more people in your target markets.
