We’ve written before about how Over-the-Top (OTT) streaming has changed the very nature of film and TV, not only from the consumer’s perspective but from the advertiser’s perspective, too.
To put it simply, OTT is a way of delivering content over the Internet, on demand and purely at the viewer’s discretion. Basically, OTT means paying an Internet service provider (think Comcast or Xfinity) and a streaming service (Netflix, Hulu, Disney+) for an ever-evolving library of content that you can view at your convenience, as opposed to paying a traditional cable company for the ability to watch certain programs at predetermined times.
It’s not hard to understand why OTT has proven popular among viewers, as it provides more control and autonomy than ever before over what you watch and when. Crucially, OTT has also taken off among advertisers. In fact, a Borell & Associates recent study showed that in 2023 advertisers were spending almost 13% more on OTT than in 2022. This was the biggest lift of all advertising channels.
Why OTT is Crucial for Advertisers
There are a number of benefits that OTT offers to advertisers. Here are just some of the high points.
1) OTT Offers a Wide Range of Content.
Traditional TV networks are naturally restricted in the type and amount of content they can air. They have to make judicious decisions about the types of content most likely to reach the largest audience, which means many niches and markets are underrepresented.
OTT content, on the other hand, can be endlessly diverse and laser-focused on reaching particular demographics and specific data segments. As an advertiser, you can use intelligent OTT buys that will help you speak more directly to the hyper-specific audience you’re trying to reach.
2) OTT Advertising Offers a High Level of Engagement.
When people are sitting down to stream their favorite show, they tend to be fairly engaged. OTT actually enhances their engagement, as ad breaks are usually quite a bit shorter than the ones associated with network TV. Often, an ad break will include just one or two ads, making it far less likely that your audience will get up to do something else.
What’s more, ads in niche content tend to be closely aligned with viewers’ interests. By providing more relevant ad content, you’ll be able to maintain a higher level of attention and engagement.
3) With OTT, Advertisers Can Access Hyper-Targeting Capabilities.
All of these benefits hinge not just on embracing OTT advertising, but on ensuring the most advanced, hyper-specific forms of targeting. By using the best targeting features currently available, advertisers can ensure that they are showing just the right content to just the right viewers at just the right time.
Such targeting abilities allow advertisers to maximize their campaign ROI, only spending money when it’s going to make the greatest impact. And by collecting data about their ad performance, advertisers can continually fine-tune their targeting options, evolving their campaigns as they gain greater understanding about their audience.
4) OTT Is Especially Useful During Election Seasons.
As a final note, it’s worth noting that OTT can be especially valuable during election seasons. (And frankly, it feels like we’re always in election season!)
Already, a lot of campaigns are investing heavily in running network TV ads for the upcoming off-year elections, primaries, and ultimately the 2024 presidential cycle. That makes a lot of the premium ad stock incredibly expensive. With OTT, advertisers can find a much more affordable and cost-effective way to break through the noise and engage directly with a hyper-targeted audience.
Embracing the Future of OTT
For advertisers, OTT and other forms of Advanced TV provide an essential way to target “cord cutters,” a category that encompasses more and more viewers who are zealous for control over their programming options.
At enCOMPASS Agency, we’ve been at the vanguard of OTT advertising for a long time now, and we’ve developed an approach that’s garnered tremendous results for our clients. We’re here to help you develop an OTT strategy that’s judicious about budgeting, targeting, and more. And, we’ll provide the kinds of reports and analytics that help you see the impact we’re making on your behalf.
We’d love to talk further about the benefits of OTT, and about our distinctive approach. Reach out to the team at enCOMPASS whenever you’d like to start that conversation.
SHARE THIS ARTICLE:
