With the growth of technology and the internet, cable TV is gradually going out of fashion. This development has directly affected the entertainment industry and business as a whole. No matter what goods or services you provide, you need to evolve with the new advertising methods to remain relevant in the coming years.
Therefore, you need to start investing in OTT advertising, which is gaining enormous popularity alongside smart TVs and streaming platforms. In 2023, the modern form of marketing will appeal to your target market and take your business to the next level.
What is OTT Advertising?
OTT stands for over-the-top, and it simply means that an OTT user is streaming content over an application, device, or smart TV.
When viewers use their smart TVs to enjoy streaming services like Netflix, Amazon Prime Video, Hulu, Disney+, and the like, they can also see ads from different brands within the video content, which are known as OTT ads or streaming TV advertisements.
Thanks to the ease it gives business owners and TV consumers, OTT advertising is already changing digital marketing. And since streaming TVs combine the advantages of smartphones and traditional TVs, more people are subscribing to OTT, further boosting connected TV growth.
What Are the Benefits of OTT Advertising?
OTT advertising is getting so popular because it has so many advantages for all kinds of businesses. Here are some of them:
- You get to use advanced targeting.
Being able to show your business to people who already want it is a big booster for conversion rates, which is what OTT advertising does for you. With information about how viewers behave and what they like to watch, you can target the right customers no matter where they are.
- You will have better campaign control.
With traditional TV advertising, you can’t control how your ads perform. But OTT advertising gives you more power over your campaigns so that you can start, pause, adjust an ad for better performance, and immediately restart it whenever you want.
- Your business will be shown to a highly engaged audience.
People are usually quite focused when streaming a TV show and may even get emotional as they continue watching their favorite shows. When your ads play at moments like these, your viewers are fixated on their screens.
- You get to reach a wider audience.
According to a recent study, more than 76% of households with TV sets have said that they own at least one smart TV. And almost 90% of this population regularly watches videos directly via OTT streaming platforms. This means that with OTT advertising, your ads can reach a large number of people in 2023.
- People will see your ad until it ends.
With regular TVs, people expect advertisements to appear on the screen during their favorite shows, so they get up to do other things during the ad time and return to continue watching after several minutes. For this reason, most cable TV ads don’t convert.
But OTT is different because the ads are oftentimes shorter, more engaging, and can’t be skipped with devices such as DVR.
The Financial Cost of OTT Advertising
Despite all the fruitful advantages of OTT advertising, you don’t need to break the bank to enjoy the benefits mentioned above. You will only pay according to how people respond to your ads, which is cost-effective.
Usually, OTT advertising will cost you between $25 and $40 per 1000 impressions. When you compare this to the cost of regular TV advertisements, you will discover that you are saving hundreds of dollars while getting more value for your money.
Factors that affect how you will be charged for OTT ads include the streaming platform, your choice of targeting, the type of ad you want to run, and your brand’s financial capacity or budget for ads.
How to Get the Best Results From OTT Advertising
OTT advertising naturally has all it takes for you to succeed, but there are certain things you must do to make the most out of this advertising method and grow your brands to amazing success levels.
- Your goal should be clear.
It is easy to get confused about this because there are so many things to accomplish with an ad. But you will get the best result if you limit each video ad to one goal. So, take your time and clearly define your goal before creating your video or posting your ads.
- Include a CTA.
Remember to include a crystal-clear call to action when making your ad videos. It will be a waste of time and resources if your ads reach many people but do not convert because viewers don’t know what to do next.
- Format your videos well.
Always ensure your videos are formatted for multiple screen sizes so that the message is clear no matter what device your ad is playing on.
- Your message should be clear.
Avoid the use of complicated grammar or unrelated scenarios. Your videos will be short and viewed by different classes of people, so make them as clear as possible for every viewer.
With all you know about OTT advertising, you should immediately start planning to include it in your digital marketing budget. You have competitors already trying to get your customers’ attention, so use this method to stay ahead.