Video streaming is an increasingly popular and effective way to reach viewers. It is also the perfect choice for brands that want to engage potential customers in the discovery phase of the consumer journey. Nielsen data indicate that 80 percent of the U.S. adult population uses an app or website on their smartphone to consume weekly online content.

Streaming video ads connect a brand and an interested consumer through the trinity of sight, sound, and motion. This rise in viewership brings another opportunity for marketers — over-the-top (OTT) advertising.

If you have binged a show on Netflix before, streamed a live event on Twitch, and watched your favorite network broadcast app on Fire TV, you have experienced OTT video content.

ott streamingDefining OTT Advertising

OTT, also known as streaming TV ads, is the company’s ability to deliver advertising directly to viewers over the internet using streaming video services or devices, like smart or connected TVs (CTV). OTT offers an opportunity for advertisers to reach new audiences and continue scaling as more viewers lean into streaming video. Viewers can also access their content at any time of the day. The major difference between OTT advertising and traditional broadcast advertising is that you can reach a small but more targeted audience with OTT advertising.

Why Brands Must Invest in OTT Video

OTT ads are reshaping the paid media landscape in several ways. These include:

The future is becoming more digital and data-driven

OTT video stats show that viewing has continued to move online, especially for younger audiences. These young audiences’ viewing habits have shifted from cable viewing to streaming and OTT apps like Roku, Netflix, Hulu, and more. A survey held in the United States indicates that 70 percent of respondents aged 18 to 34 are subscribed to a streaming service, compared to  49 percent of those aged 65 or above who said the same.

OTT Videos are Viable Components of Performance Media Mix

OTT can meet various marketing and sales initiatives because of its growing capabilities in measuring, scaling, and data-driven targeting. Your business can leverage OTT video as a performance channel that does more than build your brand– it can inform and move customers through the entire funnel.

OTT Videos Can Play a Big Role in Retargeting 

Incorporating OTT into your overall marketing strategy can retarget and engage your audience through OTT, audio ads, social media, your website, and other channels you use.

OTT Videos Save Time and Money

With OTT, your ads are only shown to people who are likely to be interested in your brand. You’re therefore less likely to waste time and money on people who will never buy your product.

OTT Videos Provide a Wide Niche Reach

Unlike traditional TV broadcasting, which needs to cater to a broad audience, OTT ads can target niche audiences. When you advertise on an OTT platform, your ad dollars will go further to reach a more targeted, niche audience than with traditional forms of advertising. 

Streaming TV Advertising Best Practices

To advertise OTT services, ensure your ads are relevant to your audience. Here are the guidelines to follow.

Keep Them Short

Most people skip ads on OTT when they see the “skip ad” button. Keep your ads short- not longer than 30 seconds to interest views. 

Clear Call to Action

Your streaming TV ads should have a clear call-to-action (CTA) that has contact information.

Pay Attention To customization

Ensure to customize your ad for all devices, including laptops, TVs, tablets, and smartphones.

Make Your Ads personalized and Relevant

Get to know your audience before going for OTT to create a personalized experience to build trust and turn viewers into customers. The OTT ads must be current and relevant to your audience.

OTT Advertising Platforms

The main OTT advertising platforms are:

Roku OTT AdsRoku advertising

This is not only a streaming device but also a streaming platform. In 2020, Roku reported 51.2 million monthly active users in the United States. Roku is popular with cord-cutters- the canceling of traditional subscription cable and satellite services for internet-based streaming- and is also considered one of the pioneers and leaders in OTT advertising. The platform offers 15 and 30-second ad spots in addition to interactive video, overlays, and sponsorships.

Hulu OTT Adshulu ads

Hulu’s streaming service had over 39 million viewers as of 2021. Hulu has its ad platform that features a robust set of options for targeting, bidding, and measuring, as well as different ad types.

Sling TV Adssling ads

This combines elements of traditional cable TV and modern digital marketing techniques. Their ads are non-skippable and cannot be fast-forwarded or blocked.

How To Measure Streaming TV Advertising

Advertisers must know the audiences they are connecting with and how different ad products complement and amplify OTT investment. With measurement, the advertisers leverage audience insights to understand the audiences their campaigns reach. Some useful metrics to measure campaigns include brand lift, brand reach, and offline lift.

How to Buy OTT Ads

There are two major ways brands buy OTT advertising:

Guaranteed IO (insertion orders)

These buys are set impressions, set-priced, usually based on reach and frequency.

Data-Driven Programmatic

These buys are based on a real-time bidding environment allowing the advertiser and the agency to maintain control of targeting but don’t guarantee set impressions or frequency.

Successful Case Study Story Through OTT Advertising

The Hershey Company is a classic example of a brand that extended the reach of its time-tested linear TV campaign strategy with Amazon OTT ads. The company began working with Amazon Streaming TV and found it could drive awareness for its brand at a larger scale and still engage relevant audiences based on Amazon’s first-party insights.

Final Thoughts

Regardless of your company’s size, you can leverage OTT ads and reach your audience in innovative and creative ways. Make OTT advertising part of your marketing strategy today and engage with a more targeted audience in more meaningful ways. 

Interested in placing OTT advertising? Contact us today.