OTT (over-the-top) services are a rapidly growing industry and constitute a powerful advertising tool to help you reach a more significant percentage of your audience. More advertisers are catching on to the benefits of leveraging OTT marketing as part of their overall strategy.
For instance, one study found that 60% of advertisers that are currently spending on CTV/OTT platforms are planning to increase their investment in 2021. This indicates that this medium is an impactful component of their media plan.
In the following blog post, we will discuss what OTT marketing is, how it can benefit your advertising strategy, and how to maximize its impact on your consumer base.
What is OTT Marketing?
Over-the-top platforms allow users to access and stream content over the Internet instead of the linear TV model, such as broadcast networks or cable. Simply put, OTT marketing is the act of advertising on such platforms.
For example, many advertisers buy spots on streaming providers like Hulu and Disney+. By purchasing spots within a programmatic, highly targeted framework (whether pre-roll, mid-roll, or post-roll), advertisers can reach out to the consumers most likely to be interested in their products.
How Does OTT Benefit My Advertising?
One significant benefit that OTT offers is increased access to younger consumers, who are generally more likely to be consuming this content regularly. For example, one study taken in November 2020 found that approximately 7 out of 10 U.S. consumers (71%) have increased their use of paid streaming services. That study also found that younger consumers (Gen-Z and Millennials) are more likely than their older counterparts to increase their use of streaming services because of:
- Interest in the programs offered
- Pricing concerns
- Greater convenience
Of course, OTT ads are not strictly limited to specific streaming providers or platforms. There can be, and often is, a lot of crossover between marketing mediums. For instance, OTT video ads can be adjusted to fit onto music streaming apps and podcasts — and even adapted for traditional TV spots, if desired. Moreover, these ads often enjoy significantly higher engagement rates than ads published on other mediums.
How Can I Make an OTT Strategy?
One of OTT’s advantages in terms of an overall marketing plan is that you don't necessarily need to perform a complete overhaul to integrate these ads into your strategy. An integrated marketing campaign should be designed to achieve specific business objectives through a well-coordinated use of different promotional methods intended to reinforce each other. OTT fits cleanly into this framework.
For example, suppose the overall objective of your upcoming campaign is to increase traffic to your website. In that case, your OTT ads can work along with your other marketing channels by encouraging viewers/listeners to visit your site with a clear CTA. If your campaign's messaging is consistent across all channels. There will be a cumulative effect from your efforts—in other words. Your campaign will have a more significant impact than the sum of its parts would indicate.
Of course, you'll need to track and analyze your OTT ads to ensure they perform up to expectations. Fortunately, most major OTT platforms come equipped with advanced analytics and reporting capabilities, making this task much more manageable.
Choose Platforms Your Audience Uses
As with any other marketing initiative, you need to make sure that you're not "punching the air" with your OTT strategy. One of the practical factors you should consider is which platforms your intended audience is most likely to use. For example: do more of your target consumers subscribe to Hulu, Netflix, Disney+, or another streaming platform? What kind of programs are they interested in?
OTT platforms allow you to target your audience on a very granular level, based on specific shows, viewing preferences, and demographic data. This real-time reporting feature also enables you to quickly adapt your campaign if the current ad distribution isn't working. It is also a great "early warning" system if you need to give your ad creative a "facelift."
Use OTT to Take Your Marketing Even Higher
In summary, many advertisers are making sure that their businesses profit from the OTT industry’s rising tide. Companies are seeing the following benefits from incorporating this into their overall marketing mix:
- Higher overall engagement with their consumer base
- Increased appeal to younger demographics
- Advanced targeting and analytics that provide valuable, actionable insights on campaign performance
- Increased brand awareness from an integrated approach
Advertising on OTT platforms will likely become even more popular over the next several years, as it enables brands to reach and engage with consumers that are becoming increasingly elusive. If you want to take your marketing plan to the next level, then you should seriously consider incorporating OTT into your mix, if you haven't already. If you have, continue to look for ways to maximize your investment. If you do, you'll no doubt enjoy exceptional results from your efforts.