OTT Advertising's Top 5 Advantages

OTT advertising is here to stay, from smartphones to desktops—here are five reasons why.

#1 Attract a Large Audience

The days of cable box dominance are long gone. Many viewers have moved their viewing habits from primetime broadcasts to internet-connected devices.

For advertisers, this implies that on the OTT side, a treasure trove of clients awaits you—and they're here to stay.

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Do you need proof that OTT has a stranglehold on today's audiences? Let's take a look at some numbers on the platforms' rising audience:

Increasing the number of CTV owners – Have you ever seen an Apple TV before? Is there a Roku stick? Is there a Chromecast box? All of these are connected television (CTV) devices, which connect televisions to the internet and OTT streaming services. Over 80% of homes in the United States had a television set last year, up from 54% five years before. 2 Increasing number of streaming subscribers — Currently, around 82 percent of U.S. customers have at least one OTT video content subscription. 3 Even better, the average American client has at least four subscriptions. Experts estimate that the overall number of subscriptions will continue to rise in the future. 4

Reduced satellite and cable subscribers - 6.6 million people will cancel their cable or satellite TV subscriptions by 2020.

5 Total viewers fell by 7.5 percent as a result of the drastic decline, and this trend is projected to continue across television audiences. 5 When compared to OTT advertising, traditional TV ad slots are losing value.

Look to the children—or, in this case, young audience demographics—for a glimpse into the future. Consumers aged 18 to 34 years old watched 23.4 percent less traditional television in the last year. 6 And you have the first generation of 12 to 17-year-olds for whom streaming stuff on CTVs is more familiar than watching traditional TV. 6 More ad-supported streaming services — Ad-supported streaming services expanded by 9% in 2020, while non-ad services grew by just 5%. 7 Is it possible to translate? Even if they have to see advertising, consumers choose to pay less for their membership.

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Micro-Target Viewers (#2)

TV advertisements are a "wide-net" marketing tactic as compared to OTT advertising. Sure, your ad campaign will be seen by a huge portion of the population, but most TV channels have too diverse a target demographic for one advertisement to capture the attention of all viewers, allowing some people to slip through the holes and nibble on more enticing promotions.

On the other hand, OTT content allows advertisers to take advantage of addressable advertising, which involves tailoring and playing different ads for different viewers based on their demographics and interests.

OTT allows you to micro-target consumers for maximum engagement with addressable advertising. A 17-year-old kid and a 32-year-old lady, for example, could watch the same episode of "Bob's Burgers" but see very different advertisements: Advertisers can target a teenager with a video game console and a woman with a cruise package.

Advertisers can target specific demographics while working with OTT ads, such as:

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Use of the device through time

Instead of casting a wide net with your TV commercials, you may target the specific audience your company is searching for using the best OTT platforms. For marketers, it's a no-brainer.

#3 Make better use of data analytics

With comprehensive data feedback and analytics available from many web-based platforms that serve OTT commercials, OTT advertisers can target specialty populations and demographics.

Here are the data points that only OTT advertising can deliver to advertisers, ranging from viewing times to completion rates:

Monitor Consumer Behaviour

It's not simply who's watching that matters; it's also what they're doing.

How long does a 30-minute comedy show keep a viewer's attention? At what hour of the day do they watch romance movies? Which gadget do they prefer to utilise the most? All of these analytics, as well as others, are stored on OTT platforms.

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That's a great stockpile of customer data for marketers. The more information you have about a certain viewer's habits, the more likely you are to place the perfect ad in front of them at the right time.

Analyze Your Performance

Marketers can also track the effectiveness of their own adverts using OTT services and advertising.

When it comes to TV commercials, the most information you'll obtain is the viewer's location and whether or not the screen remains on (and even then, viewers might take a bathroom break). However, with OTT advertisements, you may get a wealth of important data to help you better your campaigns, such as:

Total views - The number of people that saw the entire commercial.

The percentage of viewers that viewed the entire advertising is known as the video completion rate.

Attribution tracking refers to the product-related behaviours that customers do after seeing an advertisement (such as click-through rates, proceeding internet searches, and more)

Responses from various demographics - how different ages, races, and other demographics reacted to the advertisement

#4 Attract More People's Attention

With the arrival of TiVo, skipping commercials on television has never been easier. Even those without pre-recording equipment can change the channel during a commercial break on television. In today's technology environment, television commercials are no longer viable.

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OTT commercials, on the other hand, have a few characteristics that help them stand out and remain relevant. Here are a few ways that over-the-top commercials stand out:

Unskippable commercials – There are a variety of ways for TV viewers to avoid commercials, like using TiVo, fleeing to the restroom, or changing the station. On OTT services, however, ads are much more difficult to skip—users can't fast forward through commercials, and the digital format makes switching shows hard without losing your place. As a result, the majority of viewers will watch an OTT advertising all the way through.

Various platforms – Because customers can access OTT services from a variety of devices (smartphones, tablets, laptops, etc. ), tailored OTT adverts may appear many times. More views = more desired replies in commercials, according to the principle of "effective frequency." 8

Effective format - Every commercial break on television promises five minutes of pure advertising. Advertising on OTT services, on the other hand, are substantially shorter (64 percent of CTV ads are less than 30 seconds)9 and are typically displayed in breaks of no more than two minutes. This can help consumers recall advertisements and stay longer to see them.

OTT ads, unlike TV commercials, can micro-target client interests, increasing the likelihood of memorability. When asked about a specific commercial, 72 percent of OTT users could recall it. 10 In fact, 47 percent of ad-supported OTT viewers rated commercials as "helpful or pleasurable," according to a study. 11 #5 Increase customer interaction and action

The concept of interactivity is one of the most unique advantages of OTT advertising.

Viewers of network television advertising are just that: viewers who can watch an advertisement and turn the television on and off, but that's about it.

OTT advertising, on the other hand, allows viewers to click on links and complete surveys within the commercials, as well as open a new tab to look for a specific product or service. The amount of involvement afforded by OTT commercials equates to a clearer, shorter path to consumer action for advertisers.

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Customers are looking for information.

With the internet at their fingertips, OTT viewers can quickly investigate things, which is ideal for motivating consumers to take action, whether it's buying something or browsing a seasonal sales page.

During OTT advertising, 40% of users pause the video to learn more about the product or even purchase it.

10 Furthermore, 65 percent of second-screen users (those who have multiple internet tabs open) research products. 12 OTT content generates client interest simply by existing on the internet.

Click-Through Rates are High in OTT Advertising

You've probably noticed that practically all Youtube commercials contain a clickable link by now—and there's a reason for that.

For viewers, clickable advertising eliminate the "middleman" search phase. OTT users, unlike TV viewers, do not need to use a second device to look up a product. They only need to click the ad to learn more. It's faster, easier, and more trackable than ad traffic from television.

Marketers should be aware of the growing market for over-the-top (OTT) advertising.

Broadcast and cable television continue to have a stronghold on media audiences, but OTT content is on the rise—and it's not going away anytime soon. Advertising must adapt as viewers continue to "cut the cord" on cable and go to digital streaming.

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Check out Power Digital Marketing's services if you're interested in OTT advertising. Our data-driven strategy can assist you in incorporating OTT into your marketing campaigns in a way that benefits your company. To get started, check out our OTT resources for more general information.