What is OTT Advertising?

As people have been streaming more shows and movies instead of watching traditional television...

The potential for advertising on these streaming services has grown a lot.

OTT stands for "Over the Top" and refers to television, film, and other digital content that is delivered via a streaming service over the internet instead of through traditional cable or satellite TV. OTT content delivery can take place on any device that can stream video via the internet such as computers, cell phones, tablets, Smart or connected TVs, gaming consoles, and streaming devices (Roku, Amazon Fire TV, and Apple TV).

Over the top video advertising

OTT advertising is similar to television advertising, but it is delivered through streaming media platforms. As people shift more towards streaming and away from traditional television, the potential for OTT video advertising has grown a lot. Companies that have a good digital strategy are including OTT advertising as part of their overall marketing plan so they can take advantage of the powerful targeting potential and the ever-growing number of places to advertise through OTT.

Digital and data-driven

One difference between traditional television advertising and OTT video advertising is that with OTT, you can target your audience more specifically. Depending on the platform you use, your marketing strategy, and how you buy ads, you can target people based on the provider's user data, or in some cases use your own customer data. Most of the larger OTT providers let you target:

  • Demographics,
  • Location,
  • Interests and Behaviors,
  • Custom audiences.

OTT Streaming Platforms

There are three models for streaming services: Paid subscription, Ad-supported, or a hybrid mix of the two. We will only discuss a few of the most popular streaming services, but this will give you an idea of how they work.

There are many different types of streaming services. Some, like Netflix, HBO Max, and Disney+, require you to pay for a subscription in order to watch their content without ads. However, there are also ad-supported streaming services, like YouTube, where viewers can watch videos for free without having to pay. These platforms will show ads before and during the video.

Many streaming services are now using a hybrid model that lets users choose between an ad-free subscription and a free (or lower cost) version with ads. Hulu is a good example of this. Users can pay for a premium subscription to remove ads from their content. Discovery + and Peacock are other streaming services that offer tiered packages that let users choose between ad-free and ad-supported viewing.

Many streaming services offer contracts to advertisers, who can then use data to choose when and where to place their video ads. This allows brands to use a wide range of performance indicators to measure their success.

Advertising through OTT allows your brand to reach people while they are in the living room. This is a great place for families to spend time together. In fact, many people are watching content through streaming services and devices instead of traditional media.

Every brand needs to quickly adapt to changes in the marketing landscape. OTT video advertising is quickly becoming an important part of any advanced digital marketing strategy.

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