Television is one of the most well-known and well-established branding tools. Television ads have long since been used to reach a widespread and captive audience.
The downside is that it can be pretty expensive and your targeting options are limited.
Luckily, there is a new option for TV advertising that you might not understand the benefits of yet – OTT, or over-the-top.
OTT refers to streaming services like Netflix, Hulu, and Disney+.
We have another post that explains the benefits, stats, and best practices for OTT advertising. But today, we want to break down why we think OTT ads might just be the future of television advertising.
The Rising Popularity of OTT
For starters, streaming has steadily increased in popularity since the moment it was introduced. At the same time, cable and traditional TV has been decreasing across all age groups. Even if we look at the 65+ demographic, there is a growing interest in OTT.
What Sets OTT Apart from Cable Ads
- Cost: OTT advertisers pay per impression vs cable advertisers who pay for ad placement. This means that you’re only charged when someone actually sees your ad.
- Reporting: OTT ads provide real-time reporting that allows advertisers to better understand their audiences and further optimize their ads.
- Attribution: OTT ads also provide attribution tracking. This means advertisers can connect ad views to future activity, both online and off, and understand the effectiveness of their ads.
- Local Targeting: OTT ads allow local businesses to have conversations with their communities. It can be combined with geofencing for hyper-local precision to make sure your ads are being seen by people who can actually visit your business.
OTT services now account for 28% of all video viewing time – broadcast TV is also 28%, while cable claims 37%. It’s a rapidly growing market and advertising is projected to reach $21.3 billion by the end of 2022. And naturally, local OTT advertising is booming as well. Local businesses are shifting their print, radio, and some social media budgets, over to OTT. Are you ready to get on board?