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Over-The-Top (OTT) Advertising: More Important Than Ever

Cord cutters are growing rapidly in number, leading to a steep decline in traditional cable viewing. In fact, TV-streaming services saw a 212% jump in viewing hours over the past year. No wonder US TV ad spending declined 2.9%, reaching $70.3 billion in 2019. This figure is expected to decline further to about only a quarter of the total ad spend, according to figures released by eMarketer.

Leading streaming television provider Roku’s U.S. ad revenues surpassed $476 million in 2019, up 62% over the previous year. Hulu’s ad revenues surpassed $1.25 billion in 2019, signifying an increase of 13% over 2018.

OTT Advertising – The Decline of TV Commercials
One great way to innovate your advertising strategies is to adopt over-the-top or OTT advertising. Basically, OTT refers to any device that runs on the internet to stream media. This can include smart television, like Google TV and Apple TV, and streaming boxes like Google Chromecast and Roku. Most Smart TVs will contain in-built apps, such as Netflix, HBO Go and Amazon Prime. Laptops, desktops and smartphones, with Android, Windows and iOS operating systems also come under OTT devices.

OTT advertising is similar to traditional TV ads. The only difference is that they are broadcasted on these platforms. This improved technology offers the best of both worlds to marketers. You can tap a vast audience and increase your reach. Also, you can reap the benefits of being programmatic.

Why Choose OTT Advertising
While COVID-19 is keeping Americans at home, this digital solution is an ideal medium to target and engage target audiences who are “pre-qualified” to buy your products or services.

  • Target Customers with Precision
    Will little research, you get to know the audience you are trying to reach and the devices they are watching content on. This can help you engage relevant people, who are most likely to convert by taking action on your campaign, according to an article by ZypMedia. By 2021, over 50 million subscribers are expected to move past their cable connection. So, you can narrow down this audience, based on geography, demographics, and most importantly, by uncovering who is passionate about your products.
  • Easy Budget & Optimization
    The main objective of any business is to maximize the output, while keeping expenses low. Analytical data lets you know the number of views, recommended number of ads, etc. to reach your potential customer. Budgets can be adjusted accordingly. Another consideration is that streaming platforms have non-skippable ads that appeal to the hard-to-reach young audience. This makes OTT a cost-effective alternative to traditional commercials.


The Main Facts: What you Should Consider

  • A growing percentage of households ended their pay television service in favor of OTT programming.
  • For advertisers, these new OTT services offer a refreshing marketing change. Traditionally, an ad tries to reach the largest demographics possible — usually at the expense of audience engagement.
  • Ads delivered through internet streaming services offer the ability to target more specific audience segments.
  • The ability to create individualized ad content dramatically increases the likelihood of making an impression.


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