OTT, the latest trend in the world of television, is revolutionizing the way we consume our favorite shows and movies. With its seamless delivery over the internet, viewers can now watch their preferred content on a multitude of devices, whenever and wherever they please.
But here’s the twist. This wave of cord-cutting has opened up a Pandora’s box of advertising opportunities in the realm of OTT.
The emergence of cord shavers and cord nevers has not only reshaped the way we watch TV but also transformed how advertisers engage with their target audience. Brace yourself for a deep dive into the captivating world of OTT advertising, where boundaries are shattered, and possibilities become endless.
ott advertising
OTT advertising refers to the practice of streaming TV advertisements over the internet. As the popularity of subscription-based streaming services continues to grow and more households cut the cord on traditional cable or satellite television, the opportunity for brands to reach consumers through OTT advertising is on the rise.
Connected TVs are the preferred device for accessing OTT content, and with predictions of over 31.2 million cord-cutting households in 2020 and an expected growth to 46.6 million by 2024, brands have a significant audience to target. This includes not only cord-cutters but also cord shavers who still utilize streaming services and cord nevers who have never subscribed to traditional TV channels.
Incorporating OTT advertising into marketing strategies presents a valuable opportunity to engage with a large and diverse audience.
Key Points:
- OTT advertising streams TV advertisements over the internet and is becoming more popular as streaming services gain popularity and more households cut the cord on traditional TV.
- Connected TVs are the preferred device for accessing OTT content, and there are expected to be over 31.2 million cord-cutting households in 2020 and a projected growth to 46.6 million by 2024.
- OTT advertising allows brands to target not only cord-cutters but also cord shavers and cord nevers, creating a significant audience to engage with.
- Incorporating OTT advertising into marketing strategies presents a valuable opportunity for brands to reach a large and diverse audience.
- OTT advertising is particularly effective for reaching consumers who access streaming services through connected TVs.
- The rise of OTT advertising is driven by the increasing popularity of subscription-based streaming services and the trend of households moving away from traditional cable or satellite television.
Sources
https://advertising.amazon.com/library/guides/what-is-ott
https://www.forbes.com/sites/forbescommunicationscouncil/2021/02/08/what-is-ott-advertising-and-why-is-it-a-trend/
https://www.ibm.com/watson-advertising/thought-leadership/ott-advertising
https://tinuiti.com/blog/ott-over-the-top-ads/ott-advertising-guide/
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💡 Pro Tips:
1. Target Cord Nevers: Take advantage of the growing number of cord nevers by targeting them with OTT advertising. These individuals may be more open to streaming TV ads since they have never experienced traditional cable or satellite TV commercials.
2. Personalize your Advertisements: Use the targeted nature of OTT advertising to personalize your ads for each viewer. Utilize data and targeting technology to deliver relevant ads based on demographics, viewing behavior, and interests.
3. Experiment with Interactive Ads: Stand out from traditional commercials by creating interactive ads for OTT platforms. Incorporate interactive elements such as quizzes, polls, or mini-games to engage viewers and increase brand interaction.
4. Leverage Data for Ad Effectiveness: Utilize the data collected from OTT platforms to measure the effectiveness of your ads. Analyze metrics such as completion rates, click-through rates, and engagement to optimize your campaigns and maximize ROI.
5. Test Different Ad Formats: Explore various ad formats available in OTT advertising, such as pre-roll, mid-roll, and post-roll ads, as well as display and banner ads. Test different formats with different audiences to find the most effective format for your brand and objectives.
1. Ott Advertising Overview
OTT, or streaming TV, refers to the delivery of streaming media content over the internet. This type of media can be accessed through subscription-based services and can be watched on various devices such as smartphones, tablets, computers, and connected TVs.
With the rise of streaming services like Netflix, Hulu, and Amazon Prime Video, OTT advertising has become an increasingly popular and effective way for brands to reach their target audience.
OTT advertising offers several advantages over traditional advertising methods. Firstly, it allows for precise targeting, enabling brands to reach specific demographics and interests.
Unlike traditional TV advertising, which relies on broad audience segments, OTT advertising can be tailored to individual viewers based on their viewing behavior, preferences, and demographics. This level of granularity ensures that advertisers are able to optimize their ad spend and deliver highly relevant and personalized messages.
Furthermore, OTT advertising offers the benefit of measurability. Brands can track and analyze the performance of their ads, gathering valuable insights about reach, engagement, and conversions.
This data-driven approach allows for continuous optimization and improvement of advertising strategies, ensuring maximum return on investment.
2. Devices For Accessing Ott Content
Connected TVs, also known as smart TVs, are the most popular devices for accessing OTT content. These devices have built-in internet connectivity and provide a seamless streaming experience.
With the increasing affordability and availability of connected TVs, more and more households are adopting this technology, making it a prime platform for OTT advertising.
In addition to connected TVs, OTT content can also be accessed on smartphones, tablets, and computers. Many OTT services have dedicated apps for these devices, allowing viewers to stream their favorite shows and movies on the go.
This multi-device accessibility enables advertisers to reach their target audience across various touchpoints and ensures a seamless user experience, regardless of the device being used.
3. Cord-Cutting And The Rise In Ott Viewership
One of the main drivers behind the rise in OTT viewership is cord-cutting – the cancellation of cable or satellite TV subscriptions. As consumers seek more affordable and flexible entertainment options, they are increasingly turning to OTT services to satisfy their content needs.
This trend poses a significant challenge to traditional TV advertising, as brands must adapt their strategies to reach these cord-cutters who no longer engage with traditional TV channels.
OTT advertising allows brands to effectively reach this growing audience segment, who are actively seeking alternative content consumption methods. By incorporating OTT into their advertising strategies, brands can ensure that they stay relevant and engaged with their target audience.
4. Cord-Cutting Household Statistics
In 2020, it was expected that over six million households would cut the cord, bringing the total count of cord-cutting households to 31.2 million in the United States alone. This represents a substantial portion of the population that can no longer be reached through traditional TV advertising methods.
The shift towards streaming TV is further emphasized by the fact that connected TVs are now present in more than half of all US households, providing a prime platform for OTT advertising. These statistics highlight the need for brands to adapt their marketing strategies and embrace OTT advertising to effectively target and engage this growing audience.
5. Projection For Growth In Cord-Cutting Households
The momentum behind cord-cutting shows no signs of slowing down, and by 2024, the number of cord-cutting households is projected to grow to 46.6 million. This would account for more than a third of all households in the US, underlining the significance of the OTT advertising opportunity.
With such substantial growth predicted in the cord-cutting market, brands that fail to incorporate streaming TV advertising into their strategies risk missing out on a vast and engaged audience. By capitalizing on the rise of cord-cutting, brands can leverage the power of targeted marketing and effectively reach their desired consumer base.
6. Streaming TV Advertising Opportunity
The rise of OTT viewership presents a significant opportunity for brands to incorporate streaming TV advertising into their marketing strategies. With the ability to precisely target specific demographics and interests, advertisers can deliver personalized messages that resonate with their audience.
This level of customization ensures that ad spend is optimized and that campaigns generate meaningful results.
OTT advertising also allows for greater interactivity and engagement. Users can click on ads, visit brand websites, or make direct purchases, offering a seamless path for the conversion of viewers into customers.
Furthermore, brands can leverage the data generated from OTT advertising campaigns to continuously optimize and refine their strategies, ensuring the greatest possible impact.
7. Cord Shavers And Streaming Services
In addition to cord-cutters, there is also a growing segment of viewers known as “cord shavers.” These individuals reduce their pay-TV plans but still utilize streaming services to access their desired content. Cord shavers are an important target audience for OTT advertising, as they represent a significant share of viewers who are actively engaged in streaming content.
By integrating streaming TV advertising into their strategies, brands can effectively reach cord shavers and ensure that they remain top-of-mind in their purchasing decisions. Whether through targeted ads during their favorite shows or sponsored content, advertisers have the opportunity to connect with this audience segment and drive brand recognition and loyalty.
8. Cord Nevers: A New Market Segment
Lastly, there is a growing market segment known as “cord nevers.” These are individuals who have never subscribed to traditional pay-TV services or premium channels. They have grown up in a digital age where streaming content is the norm, and they rely solely on OTT services for their entertainment needs.
Cord nevers represent a valuable audience that is difficult to reach through traditional TV advertising. By focusing on OTT advertising, brands can effectively target this segment and build brand awareness and loyalty from an early stage.
By understanding the preferences and habits of cord nevers, brands can tailor their advertising campaigns to effectively engage with this unique market segment.
In conclusion, OTT advertising offers a powerful and effective way for brands to reach their target audience in an increasingly digital and connected world. With the rise of cord-cutting and the projected growth in cord-cutting households, it is crucial for brands to embrace OTT advertising and unlock the potential of targeted marketing.
By leveraging the vast reach, precise targeting, and measurability of OTT advertising, brands can amplify their marketing efforts and drive meaningful results.