What is OTT Advertising?


The way that we are consuming ads is changing.

Think about it. Even just 20 years ago when cable TV wasn’t massively popular and digital streaming certainly wasn’t a thing yet, how did you get your ads? You watched traditional TV channels and saw ads in between programs.

That is all changing.

In fact, mobile ad spending overtook TV ad spending a couple of years ago that’s how far it is falling behind both in appeal and return on investment.

We’re going to show you something new – OTT advertising. You’ll discover:

• What OTT advertising is
• Examples of OTT services
• Why it is so effective
• How OTT advertising will fare in the future

what is ott advertising

What is OTT advertising?

OTT advertising stands for ‘over-the-top’ advertising.

‘Over-the-top’ refers to a device or a service which stream digital content to either a television or another device with that capability. It sounds a bit complicated but it really isn’t and you’ll probably have some or most of these devices in your home.

It means advertising that is a bit different from the traditional means of getting commercials and ads out to consumers. So, what kind of devices are we talking about here?

Examples of OTT services

There are many OTT services and OTT advertising platforms out there but the main ones are generally found in the list below.

They can include:

• HDMI sticks which as the Amazon Fire Stick or even Chromecast which have all become hugely popular
• Game consoles such as an Xbox or a PlayStation – how many of us have these at home? Quite a few we imagine!
• Streaming boxes such as Apple TV, Android TV, Amazon Fire TV and a few others

This isn’t an exhaustive list and there are many more out there.

They have become popular because people are getting dissatisfied with paid TV services as they are quite static and don’t give subscribers what they want any more from streaming digital content. Cable television has lost a ton of people over the last few years.

Benefits of OTT advertising

Advertising on streaming services has several advantages of more traditional means.

#1 Better targeting options

With OTT advertising, you can really narrow down your audience and get your ads out to the right people who are interesting in your product.

While traditional TV advertising meant simply changing an ad for a geographical area, with OTT you can use demographics and many other powerful targeting options. This can not only give advertisers the chances to narrow down their audience and get more people to buy their products but it can also save them money too not having to shell out for one ad to cover a large area where it might not apply to many people who see it.

#2 Much better data

Traditional TV advertising didn’t give you a whole lot of data to work with. You couldn’t see much beyond how many people watched it and how much reach it had.

With OTT you can get far better analytics that will help you see who is watching the ads and allow you to make changes to your strategy so that you put better targeting options into place.

#3 Dynamic ads

As opposed to simply having a 30-second slot with that same static content, OTT advertising presents a world of opportunities. This means you can be much more creative with your ads and introduce video on demand content or even linear advertisements too.

With a much bigger range of what you can do, advertisers push the boat out and start getting more creative and this tends to be receptive to audiences as well who are tired of the old way of doing things.

Future of advertising in 2020 and beyond

OTT advertising and using streaming services for this isn’t without a few drawbacks and there are some challenges.

For one, it is still a new concept so it is far from the finished article and there is yet to be many guidelines or industry standards that are being implemented. Ads can be a bit limited as well when compared to showing adverts on a browser for example however as technology advances it is likely to become much more sophisticated.

The future is a bright one indeed for OTT advertising and the ad revenue is projected to grow to $2.7 billion this year.

More advertisers are now seeing the potential of using this type of advertising to gain new customers for their products and services. While it is still quite in its infancy compared to more traditional means, it is growing and expanding and will continue to do so in 2020 and beyond.

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