The internet continues to offer a great platform for marketing advertising and now savvy brands are taking it a step further and focusing their attention on OTT marketing.
Thanks to the power of OTT, businesses are now able to follow their customers on other channels and devices.
Let’s take a closer look at OTT marketing and why your business simply can’t afford to miss out.
What is OTT?
Before we can understand what OTT marketing is, let’s first take a look at what OTT means. Over The Top Platforms that delivers content such as TV shows, movies, and video all while not using satellite or cable subscription.
Examples include Netflix, Hulu, and Disney+. The market for OTT is huge and continues to grow. It was estimated to be valued at $210 million by 2020.
So What is OTT Marketing?
When we speak about OTT marketing, we refer to creating and sending marketing ads via the various streaming platforms. The ads are comprised of short videos. These are set to show before the beginning of the main video, during the video, and after the video.
The ads run very similarly to how the TV commercials run.
Why Choose OTT Advertising
There is huge potential with OTT as customers continue to turn their attention to such platforms. This means that you can get your ads in front of a huge market and redirect them to your website.
Granted, you may still want to go with standard TV ads. However, if your type of management is centered around trends, then OTT marketing makes plenty of sense.
After all, the nature of OTT marketing is that you can reach customers when they have already given their full attention.
OTT Marketing and Retargeting
One of the major advantages of OTT marketing is that it allows for cross-targeting of your audience on different channels and platforms including email, and social media.
Through IP targeting, and website retargeting, OTT marketing allows brands to send ads to customers.
For instance, you could watch your favorite TV show on Netflix only to see an ad for the same product you were checking out on Home Depot.
This is possible because your Netflix uses the same IP address as your laptop.
Making Money via an Ad-based OTT Channel
One of the most direct ways that your business can make the most via OTT marketing is by using ads in your videos or content. This strategy is called AVOD or advertising based on video on demand.
One of the major challenges with this model is that to be profitable, it requires a huge number of video ad views. To counter this, OTT channels will allow users to view the video for free without the need for satellite subtraction or cable.
The advantage however is that it exposes the business and brand to a large audience thus creating brand awareness.
Consumers Like Ad-Supported Streaming
This one might come as a bit of a shock. After all, you don’t want to get interrupted watching your favorite show. But data shows that people prefer ad-supported streaming services. Compared to ad-free services.
In 2020 for instance the growth and supported streaming services doubled that of free services. The reason for this is that those who have chosen OTT channels often do that because of the free content and they are willing to view ads as they do so.
There is huge potential for businesses to tap into Over The Top Streaming Platforms. For one, users have already given their attention which means they will see the ad. Users also prefer to view a few ads if it means getting free content making OTT challenges highly viable for business.