While traditional broadcasting is still just as effective as ever, advertisers must also focus on the cord-cutting viewers focused on streaming services over TV. According to information gathered by Statista, people are estimated to watch nearly 500 daily minutes of online media compared to just 300 minutes of traditional television in 2022.
That one snapshot doesn't tell the whole story: some consumers are watching no traditional broadcasting, some consumers are watching primarily traditional media, and those numbers include the whole of media, not just TV. It does indicate that ignoring OTT isn’t a smart move for advertisers, no matter what group of consumers or professionals your company wants to target. This brief guide teaches what OTT is, the benefits, and why you should blend OTT advertising into your omnichannel marketing strategies.
OTT Advertising, Explained
Before you start developing OTT campaigns, make sure you and your team are clear on the basic mechanics of OTT and OTT content.
There are three key terms you need to know to get started are:
- OTT Advertising: Transmits video ads to people watching streaming television programs and media. OTT ads can be personalized to fit the needs and interests of niche viewers or scale up to reach select viewers across a wide geographic area.
- OTT Content: "Over-the-top" content, as it’s also known, is what streaming media companies provide as a standalone product for consumers. If you watch any streaming platform like Hulu, Peacock, Paramount Plus, you’ll see OTT ads.
- CTV: A device consumers use to stream OTT content and other forms of media. Examples include Smart TVs, Xboxes, and plug-in devices like Roku that enable access to OTT on standard devices.
Keeping these terms straight — mainly because OTT and CTV are often used interchangeably — can help your teams better manage campaigns, choose the right campaign options, and communicate results.
Benefits of OTT
OTT brings many benefits to the omnichannel marketing table. Advertisers prefer OTT advertising because it allows for expanded reach outside the hard boundaries of traditional broadcasting. Like many other forms of digital advertising, OTT ads give your team more insight and control into who views their ads, what pathways and actions they have available after viewing, and short-term and long-term spending. Some of the key benefits of OTT include the following.
1. Data Transparency
Traditional or linear TV ads provide relatively opaque data marketers use to refine campaigns compared to OTT. While you can estimate the general number of watchers or watching households, it can be impossible to predict who is viewing and to what degree they are paying attention. While marketers can eventually perceive trends in the data that correlate an uptick in purchases or store visits to new linear TV ad campaigns, insight is more limited.
However, the same limitations don't apply to OTT advertising. Marketers can see average view duration, the number of views, the click-through rate provided by OTT ads, and more. This increased data transparency allows marketers to more quickly determine whether a campaign is a success, if more or less money should be added to the campaign budget and if the audience's behaviors will substantively increase revenue.
OTT advertising has advanced attribution capabilities. This means advertisers can track inbound marketing metrics, consumer actions surrounding the time when they watched the ad, and more. Through automatic content recognition (ACR), marketers can even learn what types of programs key audiences and target markets prefer so they can shift their focus to those programs.
As a result of these smart insights, marketers can target extremely niche audiences with ads that cater to specific needs and use cases. This is a key advantage over traditional broadcasting.
3. Engaged Audiences
Most importantly, OTT gives you an enhanced ability to engage your audiences. You can create personalized, interesting, and relevant ads that better suit each viewer's needs through OTT platforms. You can also increase frequency for your preferred audience instead of overspending through broad advertising channels. Engaged views are more likely to watch the full length of your ad and remember your brand because the ads are short and unskippable.
Even better, OTT ads allow for more immediate engagement with your online storefront. Watchers can click through the ad to visit your website, better engage with calls to action, and otherwise have a more seamless ad-to-purchase experience.
Arizona's Family Marketing OTT Capabilities
Working with an experienced media partner can help you see faster success with your OTT ad campaigns. Turn to Arizona's Family Marketing for more insights about OTT advertising, strategies for incorporating OTT ads into your omnichannel strategies, and more.