The advent of OTT platforms has changed the way people watch television. Also, the rapid rise of streaming video viewership trends plays a crucial role in the advertising industry. Netflix, Amazon, Disney+, and other internet-based video channels are examples of online streaming video platforms.
According to Statista, nearly 150 million adults in the US use OTT (over-the-top) platforms to access streaming video on services like Roku and Hulu. Given this number, businesses have started using over-the-top platforms to reach out to target audiences. As a result, we have a new channel called OTT advertising. Digital marketing professionals have slowly started offering OTT advertising.
The concept of OTT advertising is relatively new, so not many would be aware of it. If you are one of them, you are on the right page. In this post, we will explain everything you need to know about OTT advertising. First, we will start with the basics.
- What is OTT advertising?
OTT advertising refers to advertising that delivers ads via online video streaming devices, like smart or connected TVs. With this advertising medium, you can run banner ads, video ad interruptions, sponsored content, and so on.
When it comes to the term “over-the-top,” it means bypassing the traditional TV advertisement and reaching out to target audiences directly. Yes, those who are watching online streaming videos from the comfort of their living room. As a result, many enterprises are hiring digital marketing services to begin OTT advertising.
- The inception of OTT advertising
While OTT advertising has been around for some years, it accelerated significantly in 2020. Why not? In this year, the dependency of businesses on online solutions increased like never before. Hence, more enterprises are opting for OTT marketing tools to ensure better traffic and more sales.
With online video streaming services becoming a household thing, we can expect OTT advertising to overtake TV commercials in the coming years. Are you wondering why people are shifting from traditional TV marketing to OTT advertising? If yes, then we are here to help you.
- What drives the shift from traditional TV commercials to OTT advertising?
No matter what business you own, investing in OTT advertising will create a win-win situation for everyone. OTT platforms seem the right candidate due to their massive user base. Thus, advertisers can promote their products and services significantly while leveraging better revenue potentials. Let us unveil the benefits of investing in OTT advertising:
- Minimal ad spends waste – Unlike traditional commercials, OTT advertising offers precise targeting that reduces waste runs and saves money. For example, if your potential consumer is interested in gym clothing, they will not see any other ads.
- No-limitation advertisements – OTT advertising comes with in-built tools that allow marketers to retarget their potential customers via web and mobile traffic. So, it is clear that these advertisements are limited to TVs.
- Advanced analytics – Another advantage of OTT advertising is advanced analytics. It allows businesses to use the data obtained from the audience to evaluate which OTT ads are performing well and which are not. Based on this, you can create your OTT marketing strategy.
We learned some excellent benefits that businesses can enjoy by investing in OTT advertising. But will it have the same impact in the coming future? Or will OTT advertising grow in leaps to bound? We will find this out below.
- The future of OTT advertising – Is it bright?
The future of OTT marketing looks as bright as possible. We see OTT platforms are continuously disrupting the video watching industry. It serves both viewers and businesses. The number of viewers watching traditional TV continues to go down, whereas OTT platforms gaining more viewers. Thus, it is the right time to build your OTT channel and stay ahead of your competitors.
Hopefully, this post has answered all your questions about OTT advertising. Now, you know that by having an OTT channel, you can target new audiences without having to break your bank. If this advertising method fits your business goals and needs, hire one of the best digital marketing professionals.
If you are looking for a reliable company that offers various digital marketing services, get in touch with SoftProdigy. We provide a range of marketing solutions, such as YouTube Marketing services, Google ads, social media ads, OTT advertising, etc.