A bold expansion of the CTV / OTT market is a steady trend of recent years. The number of OTT and CTV viewers aggregate somewhat 200 million active users in the U.S.
Just to review, CTV and OTT are quite similar and both provide content via internet-connected devices. But we refer to CTV speaking of Smart TV or streaming gadgets that are attached to TVs, while OTT refers to the technology of streamlining content ‘over-the-top’ i.e. over the web.
So why these mediums are so popular among people and how marketers benefit from OTT ads? Here are some of their core advantages:
As we’ve already said, brands can reach their target audience on any internet-connected device. Basically, it’s traditional TV viewers (partially) audience that migrated to the new channel plus a great number of Millennials and Centennials who prefer watching content on-demand.
Pick what you like
There are dozens of streaming content providers (Apple TV, Android TV, Hulu, Roku etc.) with different genre biases so anyone can choose the best from the list. Such a split on interests helps marketers to picture a precise portrait of a prospect.
No geographical borders
Since the Internet is worldwide available, people have access to their favorite TV shows wherever they are which means no geo borders for advertisers as well.
We live in a fast-paced world so decisions are likely to be made and changed at any moment. Digital TV allows users to activate and deactivate the subscription just in a couple-clicks, whenever it is required.
It all sounds good, but how exactly brands can convert these benefits of OTT and what makes it a standalone advertising force against the cable TV? To draw a distinguishing line between them, here are the key features for each side:
Cable TV Advertising
- The audience segmentation is based on ratings and timing of TV shows.
- The audience size can be estimated and expected but not accurately calculated.
- The cost of an ad is based on the rating of the channel and TV show, daypart and many other factors.
- The audience is ‘trapped’ in the cable TV program (schedule) and it can see proper ad only within a certain ad break.
- There is no location pin for each user, so the geographic data can’t be utilized by advertisers.
- Users are segmented by locations, interests and online behavioral backup is also implied.
- With real-time analytics, advertisers can measure ad campaign performance and make instant, yet data-based, decisions.
- Digital TV can offer interactive and high-engagement creatives that provide higher conversion rate.
- People can access the streaming service anywhere, anytime, through any device.
So what is OTT advertising? Why does it matter? Doubts aside, it is a next-generation monetization hub that possesses core features for advertisers. They can run resultative campaigns due to accurate metrics to make the right decisions and constant connection for the everlasting performance.
Digital television has already proved itself as an efficient channel for business promotion purposes and a full-funnel solution to cover a wide audience within the addressable advertising market. While users enjoy diverse, quality content on-demand, it makes a perfect bridgehead for brands to communicate with the audience through interactive messages.