What is Over-The-Top Advertising?

Marketing is always evolving and keeping informed and mission-capable is the hallmark of a successful marketing professional. Lately, a number of new trends have emerged in the field, further reshaping the ways in which marketing and advertising function in the context of streaming video. OTT advertising is getting a great deal of attention lately—and for good reason. Also referred to as over-the-top advertising, OTT advertising offers an effective and accessible approach to reaching your target audience. But what is OTT advertising, and how can you make it work for you and your business?\

OTT Advertising Meaning and Definitions

While television advertising is nearly as old as television itself, OTT advertising represents an adaptation to the streaming age. OTT advertising draws its name from the over-the-top video content, defined as any streaming content delivered directly to the view on demand via an internet-based service. This approach to content bypasses traditional broadcast and cable TV providers in order to reach the viewers directly and deliver exactly the content they want when they want it. OTT advertising changes the relationship between the viewer and the content, and thus in turn transforms the ways in which marketing and advertising function on television.

OTT vs. VOD vs. CTV

Understanding the differences between OTT, VOD, and CTV can help you navigate the modern media advertising landscape more effectively.

OTT (Over-the-Top) refers to streaming video content directly over the internet, bypassing traditional cable or satellite services. OTT platforms offer a wide range of movies, TV shows, and original content, accessible from various devices connected to the internet. Popular options include Netflix, Hulu, and Amazon Prime Video.

VOD (Video on Demand) allows viewers to choose and watch video content at their convenience, rather than adhering to a set broadcast schedule. VOD can be delivered through both OTT services and traditional cable providers. For example, you can watch a movie on Netflix (an OTT platform) or rent a film through your cable provider’s on-demand service.

CTV (Connected TV) refers to any television that can connect to the internet and offer access to a variety of online content. Think smart TVs with built-in internet capabilities, as well as TVs connected through external devices like Roku, Apple TV, or gaming consoles. CTV allows users to stream content from OTT services, browse the web, and use various apps directly on their TV screens.

Key Types of OTT Ad Platforms and Distribution Channels

Different types of OTT ad platforms offer different benefits. You’ll need to choose the right ones based on your marketing needs.

Subscription-based (SVOD) platforms, like Netflix and Disney+, require users to pay a monthly or yearly fee for unlimited access to content. These platforms offer a steady revenue stream but typically do not include ads.

Ad-supported (AVOD) platforms, such as Hulu and Peacock, provide free or low-cost access to content in exchange for viewers watching ads. With this model, advertisers can reach a broad audience and generate revenue through ad impressions.

Transactional (TVOD) platforms, including iTunes and Google Play, enable users to purchase or rent individual pieces of content. While not as common for advertising, these platforms can be useful for promoting specific titles or events.

Distribution channels include:

  • Direct-to-consumer apps: Apps developed by content providers to stream directly to viewers.
  • Third-party aggregators: Platforms that bundle content from various providers, like Amazon Channels.
  • Partnerships with device manufacturers: Collaborations with companies like Roku or Apple TV to feature your content on their devices.

How OTT Advertising Works

The potential and power of OTT advertising are vast, and will only continue to grow as conventional television, both broadcast, and cable, yields market share to streaming services of all kinds. This is an opportunity for advertisers and their client businesses to utilize new tools in reaching the desired audience via the unique strengths OTT advertising brings:

  • Better audience targeting: OTT advertising takes advantage of the tracking and consumer research capabilities built into streaming services in order to more effectively target audiences. With OTT advertising, audiences can be tailored by age, race, gender, income, location, viewing habits, purchasing habits, and more. This ensures that your advertising goes where it is most effective, every time.
  • Increased audience engagement: As an extension of its audience targeting capabilities, OTT advertising also leads to increased audience engagement when compared to conventional or legacy advertising. OTT advertising meets audiences where they are most interested and most invested, and thus transitions them into your overall marketing ecosystem far more quickly and efficiently.
  • A more effective marketing budget: Targeted, tailored, and well-crafted OTT advertising and a targeted, well-defined audience help to ensure that your marketing budget is spent more efficiently, with a greater ROI than ever before. OTT advertising ensures that both your marketing plan and your marketing budget remain adaptable and agile as your business develops.

OTT advertising transforms the relationship between the target consumer, the medium, and the message. In an internet-driven world with a media culture focused on mobile devices and streaming services, OTT advertising is rapidly becoming a vital tool for successful marketing.

However, there’s a great deal more to OTT advertising than putting an ad on a streaming service. So how can you make OTT advertising work for you and your business?

How to Create an OTT Strategy

Creating an effective OTT advertising strategy can help you reach your audience more efficiently and boost your campaign’s success.

First, understand your target audience. Research their preferences, viewing habits, and demographics. Knowing who your audience is will help you tailor your content and choose the right platforms.

Next, select the appropriate platforms. Choose OTT services that align with your brand and where your audience is most active. Platforms like Netflix, Hulu, and Amazon Prime Video are popular, but consider niche services if they fit your audience better.

Then, produce high-quality content. Create engaging ads that resonate with viewers. High production values and compelling storytelling are key to capturing and holding attention.

Use data analytics to track performance. Monitor how your ads are performing and refine your strategy based on the data.

Finally, optimize for different devices. Ensure your content looks great on all screens, from smartphones to smart TVs.

Challenges of OTT Advertising

OTT advertising does come with its fair share of challenges.

Platform Fragmentation

One major issue is the fragmentation of platforms. With countless OTT services available, reaching a wide audience often means advertising on multiple platforms. This can be more complex and costly.

Measurement and Attribution

Another challenge is measurement and attribution. Unlike traditional TV, there is no standard metric for measuring OTT ad performance across different platforms. Hence, it’s difficult to accurately track and compare the effectiveness of your campaigns. Advertisers must rely on various tools and analytics to piece together a comprehensive picture.

Ad Fraud

Ad fraud also poses a significant threat. Issues like bots and fake views can skew your data, making it seem like your ads are performing better than they are. Inaccurate data can skew your budget and undermine the true impact of your campaigns.

OTT Advertising Tips and Best Practices

To get the most out of your OTT advertising efforts, it’s important to follow some key tips and best practices.

Target Precisely

Use data-driven insights to focus your ads on specific demographics and viewing habits.

Create High-Quality Content

Invest in producing engaging and high-quality ads that capture viewers’ attention. Great content is essential to keeping your audience interested and engaged.

Leverage Interactive Features

Incorporate interactive elements like clickable overlays and shoppable ads to enhance viewer engagement. Interactive ads can make the viewing experience more engaging and memorable.

Monitor and Optimize

Continuously track the performance of your ads and optimize them based on data and feedback. Regular monitoring helps you understand what’s working and what needs improvement.

Stay Compliant

Ensure your ads comply with platform guidelines and regulations to avoid penalties and maximize reach. Adhering to these rules is crucial for maintaining a good standing on the platforms you use.

Wahha Design: Making OTT Advertising Work for Your Business

Effective OTT advertising involves crafting an OTT marketing campaign that suits both the needs of the medium and the client business’s goals. There are a number of technical and stylistic considerations here: are the ads of appropriate length and format? Are they mobile-friendly? Are they relevant to the audience in question? For that matter, have you correctly identified the target audience?

Wahha Design has the answer to these questions and more. With a proven track record and a bleeding-edge approach to digital marketing, Wahha Design understands both OTT marketing and how to make it work for you and your business or brand. High-quality content, professional implementation, and an innovative approach all come together as Wahha Design delivers the success you need.

Get in touch today, and we’ll schedule a consultation.

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