In recent years, over-the-top (OTT) advertising has cemented itself as a growing media platform. Not only is it connecting with millions of viewers, but it's also attracting more advertisers. OTT media revenue is projected to reach more than $167 billion by 2025, twice as much as the $83.3 billion generated in 2019. OTT is becoming one of the most effective methods if you're looking for ways to successfully combine TV and digital marketing.
To get the most from OTT marketing, you need to understand what OTT is and the advantages of using these platforms.
OTT Basics
If you're new to this type of advertising, you may be wondering what OTT advertising is. OTT stands for “over-the-top” and refers to streaming services, like Hulu and YouTube, and includes audio services like Spotify and Pandora. These go beyond traditional broadcast TV or radio because it’s delivered to various devices through the internet via apps on connected TVs (CTVs), gaming consoles, or other devices.
Specific services allow advertisers to run ads before programs run, in the middle of these programs, or at the end to promote their brands and products, usually on free or discounted versions.
OTT services have become increasingly popular substitutes for traditional TV, offering more options and convenience for users. As a result, using OTT ads can help you connect with many people who aren't as likely to see your TV commercials.
What Counts as OTT?
OTT refers specifically to the services that people use, including Netflix, YouTube, Hulu, Sling. Many users view streaming services on mobile devices and computers and CTVs with specific apps for these services. They can also use dedicated devices such as Roku and Apple TV.
Depending on their cable subscription, people may also watch OTT services as channel subscriptions or video-on-demand (VOD). They can also often watch these on their TVs and other devices, like computers or tablets.
Music streaming services also count as OTT. Platforms like Spotify, Pandora, and Soundcloud allow ads to play if users don't pay for the premium versions. Podcasts offer another venue for advertisers, which feature pre-recorded ads during podcasts and live endorsements from podcast hosts.
Regardless of the platforms, there's no shortage of placements for OTT ads based on your audiences' interests and viewing or listening habits.
Why Should I Spend on OTT Ads?
OTT ads are potentially invaluable for advertisers because of their ability to connect with audiences who aren't as easily accessible through other media. You'll reach audiences who may not be actively watching TV as well as those who enjoy both traditional TV and streaming services.
Today, OTT streaming platforms account for around 25% of the total amount of time consumers spend watching TV, allowing plenty of opportunities to reach people. Using traditional TV commercials and OTT ads maximizes ad visibility and reach a broader audience, leading to improved overall ROI.
What Opportunities Does OTT Have?
More and more streaming services are available to consumers as media companies continue to jump on the OTT bandwagon. Corporations like Disney and Paramount now have streaming services, along with the original set. Aside from the major platforms, many niche options can target more specific audiences. For example, services like Curiosity Stream reach audiences primarily interested in documentaries.
Podcasts are also going strong today, with an ever-expanding catalog of topics and subtopics, covering everything from cooking to true crime investigations. Subsequently, podcast advertising is becoming increasingly targeted and appealing to businesses of all types.
As long as your ad creative connects and engages with potential customers on these platforms, you can see some of the best results with these opportunities.
Use OTT Advertising to Reach More People on Many Platforms
With so many outlets available for OTT ads, utilizing OTT platforms helps you reach your marketing goals effectively. While traditional TV advertising is still effective, OTT enables you to connect with audiences beyond this medium and hyper-target your campaigns. Whether reaching people through ads on video streaming platforms or advertising on podcasts, there's no shortage of opportunities available.
If you want to excel with your digital marketing efforts, supercharge your marketing strategies with OTT ad campaigns. Using these platforms, you'll be able to significantly boost brand awareness and drive more sales with ads that genuinely connect with audiences.
