Over-the-top (OTT) streaming services have become increasingly popular over the years among viewers. As OTT audiences grow, more advertisers are jumping on the chance to use this channel to boost their marketing campaigns. With the popularity of services such as Netflix, Hulu, and YouTube over traditional television, it's important to take advantage of OTT and streaming if you want to connect with audiences. The following are some key benefits of OTT advertising to consider when deciding whether to use this channel.
1.) Broad and Diverse Reach
OTT ads have the ability to reach a large number of people with relevant interests. Consider the fact that 64% of households in the U.S. no longer watch cable TV, intend to stop watching, or never watched it to begin with. Many of those audiences are making the switch to OTT streaming services in lieu of TV. While TV ads can still be useful, you can reach the audiences not viewing those based on specific demographics and psychographics.
For example, you can access millions of users through platforms like Hulu and YouTube. On these platforms, highly relevant ads can appear on audiences' favorite TV shows, movies, and other on-demand videos that cover nearly any interest.
2.) Great Targeting Abilities
Data-driven ads are likely to yield a return on investment that's 5 to 8 times greater than less targeted ads. Through the use of OTT, you can use highly targeted ads that yield better results, whether your ads appear in on-demand content or live programming. Similar to paid search and social media ads, you can make sure the right people see your ads at the right time. Customize your ad campaigns based on topics, geography, and demographics. You can also target a certain time depending on when your audiences are most likely to see your ads.
This ability to optimize targeting makes OTT ads potentially far more effective than traditional TV ad campaigns.
3.) Powerful Analytics
OTT ads give advertisers access to the data they need to measure the performance of their campaigns in real-time. You'll be able to analyze various metrics based on your goals and targeting. You also have the ability to A/B test all OTT ads to determine which ones are performing optimally and which could benefit from additional changes.
For instance, you may have an ad campaign with a goal of increasing brand awareness. After launching your ad campaigns, you can measure impressions, views, and video completion rates to determine how your audience is responding to them.
4.) Convenient User Experience
As of 2020, 69% of Americans are currently subscribed to at least one streaming service. While 65% still watch cable TV, the number of cable TV viewers is dropping by nearly 28% every year. One of the key reasons why people are making the transition is the convenience of streaming. People can watch videos on-demand whenever they want, without the need to wait for a program to air.
The ability for people to watch their favorite shows, movies, and video clips at their own convenience means that they'll see your connected ads whenever they're watching. You no longer have to rely on an audience of loyal viewers to tune into a live broadcast.
5.) Clickable CTAs
Keep in mind that two out of three people look up details about a product they saw on TV, which also applies to OTT ads. Oftentimes, OTT ads on non-connected devices or non-connected TVs allow users to take action directly through the ad. For example, an individual who comes across a pre-roll ad before a YouTube video plays can click on the ad to take them to a corresponding landing page.
While connected TV and devices may not allow for ads with clickable CTAs in most cases, there are still plenty of chances to use clickable ads for certain campaigns.
6.) Cost-Effective Medium
Using at least three channels in a single advertising campaign can lead to a 287% higher purchase rate compared to campaigns relying on one channel. That applies to the use of OTT for one of those channels, which is a great way to maximize profitability.
OTT ads are highly flexible when it comes to pricing. You can purchase OTT ads based on cost per thousand impressions (CPM). The CPM rate typically depends on either the reach or frequency of ads.
Advertisers can select a specific programmatic approach to connect with target audiences, giving them more control compared to traditional TV ad campaigns. Based on the approach and CPM, advertisers will only pay for OTT ads when the audience views them, which makes it one of the most cost-effective channels.
Implement OTT Ads to Connect with Audiences and Increase Profitability
Incorporating OTT advertising can help you get the most from your advertising campaigns. OTT advertising strategies can connect with highly targeted audiences who may not find you otherwise as they stray from traditional TV and other media. You'll have the chance to connect with people who are actively interested in your products or services. You can also integrate OTT ads with a holistic cross-channel marketing campaign while saving more money in the long run.
If you want to develop a comprehensive OTT ad campaign that yields the best possible results, consider partnering with a digital agency. With a reliable agency by your side, you can implement a highly effective and profitable strategy.
