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What is OTT advertising and what are its benefits?

HomeBusinessWhat is OTT advertising and what are its benefits?

OTT (over-the-top) advertising is delivered without delay to visitors over the net via streaming video services or devices, which includes smart or connected TVs (CTV).

The term “over-the-top” comes from the capacity to pass conventional TV companies that manage media distribution, giving advertisers the ability to attain their audiences without delay.

What is Connected TV (CTV) Advertising?

Connected TV or CTV in short, refers to televisions which might be connected to the Internet both wired ethernet cable or wirelessly. The terms (OTT vs. CTV) frequently seem collectively like batman and robin as each are intricately connected to each other.

OTT works via all kinds of devices and one of the primary approaches is through a TV. These days, TV comes ready with the functionality to hook up with the Internet thereby turning into OTT-ready intrinsically with what’s known as smart TVs. 

It is the act of showing advertisements to buyers while they’re watching streamed (OTT) media. You can do this in one or two ways:

Programmatic: Here, automation is used to serve OTT commercials throughout multiple networks via demand-side platforms (DSPs) like Rocket Fuel, MediaMath, APPNexus, TubeMogul, and more.

Programmatic delivery has higher targeting, and may be much less expensive, however you have much less control over which your commercials appear.

Platform direct: This is in which you’ll buy commercials immediately from the issuer of the OTT device (which includes Roku or Amazon Fire TV from our linked TV illustration).

Publisher direct: Here, the alternate occurs immediately with the OTT service issuer 

Direct means of OTT advertising provide you with extra manipulation over in which your commercials are placed, however may be high priced and don’t manage to pay for as much large exposure.

What are the benefits of OTT advertising?

1. Ad-supported OTT services are on the rise

According to Cox Media, the increased price for ad-supported streaming offerings in 2023 almost doubled the price for ad-free streaming offerings. In fact, OTT streaming improved via way of means by 115% in 2021 while as compared to the preceding years.

As a result, many media companies are understanding the want to both start streaming content or provide you with an ad-supported version in their service.

2. Consumers prefer ad-supported streaming

But purchasers don’t like ads. So why are ad-supported streaming offerings growing? Well, purchasers are turning to streamed content in order that they could watch video on demand. After all, you may try this with cable/satellite TV these days. It’s additionally to save money. So it makes sense that those “wire cutters,” as they’re called, pick seeing some ads if it means free (or cheaper) content material. 

And this became proper even earlier than the pandemic. A Deloitte survey confirmed that 62% of purchasers desired much less costly (or free) ad-supported services costly ad-free services.

3. OTT advertising works without third-party cookies

Not only is streamed content material turning into greater popularity, however it additionally provides opportunities for cookieless focused on. Here’s how:

First, there’s contextual advertising—which no longer requires cookies because you’re focused on categories of TV/video content material in preference to individuals.

Second, streaming subscription services gather a enough level of first-party data from users (upon registration and logged-in activity) to permit for effective targeting. So you’re using their first-party data without honestly getting access to it.

Third, there are still approaches to report the effectiveness of your OTT advertisements, the usage of IP addresses and timestamps.

4. OTT video ads have higher completion rates

Viewers are not able to skip OTT ads, install advertisement blockers, or switch the channel (they’re only on one), so the possibility of your ad being watched all of the manner through are much higher. Yes, they may leave the room, however with customers viewing content material on mobile devices (on the train or in the car, for example), this isn’t an option. You are probably worried that this creates a terrible experience for your audience, however remember, they prefer advertisement-supported content due to the fact that they’re getting it for free. In other words, they recognize what they signed up for.

5. Measure and optimize

In case you deliver your OTT advertisements pro grammatically, you’ll be capable of viewing overall performance analytics so that you can understand what’s running and what’s not. This way, you may do away with ineffective and money-wasting campaigns, make adjustments to enhance present campaigns, and scale your maximum success campaigns.

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