Before we go on the discussion on what OTT advertising is, it is crucial to consider knowing first what OTT is. OTT or Over-the-Top television/media, which actually is considered to be an online streaming option for movie and television content without any need for a traditional TV contract. You can gain access to it through your tablet, smartphone, PC or smart TV.
Use of Smart TV
According to a study made by the Video Advertising Bureau Reports, more than 70% of internet users uses the OTT service for at least once every month. Such services actually still continue to grow in both the overall users as well as the frequency on its use. It’s also estimated that in the year 2022, there will be more than 190 million users of OTT each month.
Though there are some OTT service which are paid and does not come with ads, there are still some that contains ads in order to support the service either with a paid or not membership. These kind of ads however are not being purchased or sold like those with the traditional TV advertising. This in fact resembles more like the digital video advertising.
There are various benefits that can be obtained from OTT advertising. Some of these would be:
Reach is Larger
OTT before could never boast that a large reach was in fact good for the platform. But this in fact grown faster over the last few years and could now reach larger to different audiences. OTT in fact now has a much larger reach compared to other platforms.
Comes with Stronger Targeting
Another benefit of OTT would be targeting. A business could in fact choose their geographic location, topics that they should advertise on and demographics. A targeting like this is not possible on traditional TV advertising and can actually help reach the right kind of audience. It could also help to reduce any possible waste advertising resource and it can help increase the efficiency of your advertising.
Best Analytics for Advertising
Most OTT platforms offers analytics on advertising. It includes both view data and impression. You could find some platforms that can actually offer various kinds of data and it can segment the data by placement or targeting.
Flexible Budgeting Option
The ability to target and track views would allow flexible budgeting. There actually are several impressions which could be bought for a specific target audience in order to help maximize efficiency and in minimizing expenses.