The Power of OTT Video Ads in Your Marketing Strategy
In the rapidly evolving landscape of digital marketing, staying ahead of the curve is crucial. One trend that’s making waves and revolutionizing the way businesses connect with their audience is Over The Top (OTT) advertising. In this blog post, we’ll explore the different types of video ads, with a particular focus on OTT, and why they are becoming an indispensable part of your marketing arsenal.
Understanding OTT: Breaking Down the Buzz
What’s OTT, Anyway?
OTT stands for Over The Top, and it’s more than just a catchy acronym. Over The Top is video Programming transmitted via the Internet, not on traditional cable or broadcast. Initially coined to describe devices bypassing traditional cable providers, OTT now represents a paradigm shift in how people consume content.
Instead of being tethered to cable boxes, users access streaming TV content directly over the internet. OTT can be watched on any type of internet-connected device including Roku, SmartTVs, Fire TV Sticks, XBOX, PlayStation, AppleTV, ChromeCast, and more.
The Rise of OTT: A Paradigm Shift
As more individuals cut the cord on traditional cable services, the adoption of OTT is skyrocketing. In fact, a staggering 98% of all US households subscribe to at least one OTT service. The average user spends more than 2 hours daily immersed in OTT content. They stream across three devices and utilize three different OTT services.
Where Will My OTT Video Ads Be Seen?
With our OTT service, you gain access to thousands of publishers and streaming exchanges across popular stations such as Sling TV, Fubo, Pluto.TV, and channels including A&E, AMC, Discovery, ESPN, FOX, NBA, NBC, Syfy, Adult Swim, CNN, and the Food Network.
Diving Into the Numbers: A Harris Poll Perspective
A recent survey conducted by the Harris Poll and AdTech platform Open X unveils intriguing insights into the OTT phenomenon:
- 60.9 million Americans don’t subscribe to traditional TV services.
- 2.3 million Americans canceled pay-TV services in the second quarter of 2023 and 8 million over the previous 12 months.
These figures underscore the undeniable shift towards OTT, with users not merely testing the waters but fully embracing this new way of consuming content.
Navigating the Sea of Streaming Services
The Streaming Dilemma: Finding the Perfect Fit
With an abundance of streaming options from Apple TV+ to Disney+, users are faced with a dilemma: how many services do they really need? The average consumer subscribes to at least four services, and the challenge lies in crafting the perfect combination to satisfy individual preferences.
Advertisers in the Streaming Era
Amidst this streaming chaos, advertisers are navigating the landscape, allocating an estimated $251.3 billion for digital video advertising in 2023. Digital video budgets are set to increase by 25%, driven by key areas such as original digital video content, advanced TV, and programmatic advertising.
The OTT Audience: An Advertising Goldmine
As the number of video ads increases, how do OTT audiences respond, especially on mobile devices? According to the Harris Poll survey:
- 65% of OTT users pause commercials on their phones to search for product information.
- Intent to purchase is displayed, presenting a significant opportunity for brands.
However, the diverse nature of the OTT universe poses challenges. Ad-supported platforms differ, making it difficult to implement a uniform advertising strategy.
Decoding the OTT User: Preferences and Tendencies
Consumer Preferences: A Tiered Pricing Model
The survey reveals valuable insights into consumer preferences:
- 72% understand the trade-off between free content and targeted ads.
- 46% are willing to pay for an ad-free service.
- 38% prefer a hybrid model with a few ads and a lower monthly cost.
This suggests that OTT providers may adopt a tiered pricing model to cater to varied customer segments.
Targeting and Personalization
To personalize ads to the OTT viewer here are some of the effective strategies that we use:
- Behavioral Targeting allows advertisers to tailor OTT ads based on users’ online and offline behaviors and interests, ensuring content resonates with individual preferences.
- Artificial Intelligence (AI) targeting takes this a step further, utilizing machine learning to identify and engage consumers based on their interaction with ads across all devices.
- Retargeting plays a pivotal role by maintaining brand presence beyond a website, following users across various websites and apps to reinforce awareness and encourage re-engagement.
- Customer Audience Matching, for a more personalized touch, bridges the online and offline worlds, targeting your database of individuals or businesses based on their emails, addresses, or phone numbers.
- Lookalike Audiences strategically expand reach by identifying individuals whose online behavior mirrors existing audiences, maximizing the impact of OTT advertising efforts.
These targeted strategies not only enhance the effectiveness of OTT video ads but also ensure a nuanced and resonant connection with the intended audience.
In conclusion, as we navigate the ever-changing landscape of digital content consumption, it’s clear that Over The Top (OTT) advertising has become a force to be reckoned with. The statistics speak volumes, indicating a significant shift in how audiences engage with content. Rather than a mere trend, OTT is now an integral aspect of modern marketing strategies.
As we step into the evolving future, Digital Specialized is ready to support your business in succeeding with OTT advertising. Let’s tailor a strategy that aligns with the preferences of your target audience and maximizes the potential of this advertising goldmine.
Contact us today, and let’s embark on this exciting journey together. Your audience awaits in the world of Over The Top content!
