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The value of OTT (learn about OTT vs CTV) is based on the increasing number in mainstream media consumption through online media channels. According to a VAB report [1], the number of people using OTT in America alone has tripled over the last five years.
Fifty-million households are now subscribed to OTT services [2]. The figure is approximately half of the people that have internet in their homes.
As the trend becomes more popular, many marketers are joining the wave every day.
Importance of OTT Advertising
With many advertisers opting to buy OTT, it’s only safe for you or your firm to jump in the wagon to compete favorably.
Here are 5 reasons to try OTT advertising.
1. Multiple Compatibility
Unlike traditional channels where the audience needed a TV to access their favorite channels, with OTT, they can watch their favorite shows on different gadgets. The only thing that they’re required to have is an internet connection or WI-FI.
This means it’s now easier to have your ads viewed, as consumers spend most of their time on their devices.
Some of the gadgets that allow streaming include:
- Mobile phones. Android and Apple have OTT apps that users can download to use OTT services.
- Persona computers. Windows PC and Mac, allow viewers to stream through certain web-browsers.
- Smart TVs. This new wave of televisions is allowing users to download OTT apps directly to the television.
- Normal TVs. Even the consumers who don’t have smart TVs are using TV sticks or smart boxes to allow OTT services.
- Video game consoles. Some consoles allow users to stream media content by downloading OTT apps.
Therefore as an advertiser, you can easily reach all your potential consumers across all devices.
2. Understanding the Customer’s Journey
Marketers have been struggling to know the path a consumer takes when purchasing a product online. With OTT, tracking your potential leads’ journey has been made simpler.
You can now track the consumer’s motivation, interests, and customer personas by linking technologies and utilizing real-time analysis. By doing so, you get to know what your leads are engaging with in social media, what they’re streaming, and what they’re searching online.
This data can help you in running your campaigns by tailoring your sales funnel based on your consumer’s journey.
3. OTT is Cost-Effective
Media streaming devices have great content, and one can access thousands of TV series, documentaries, and movies. And a user can watch anytime they want.
For example, Netflix only goes for $8/mo for a number subscription and $12/mo for its HD package.
This is another reason why OTT has such a huge audience. With proper targeting, your ads can give you huge returns because they’re reaching thousands of people.
4. It’s Measurable
With traditional advertising, it’s impossible to measure the relationship between the ad and the sales a company is making. Yet, multiple OTT platforms provide data analysis for their products. At the bottom line is OTTs that only provide info on data and impressions. A majority of OTT platforms offer different classes of data and can divide by targeting or placement.
This allows you to know the ads that are bringing in revenue and double the investment on them, as you get rid of the ones that aren’t working.
5. High-Quality Creative
The other good thing about OTT platforms is that it’s possible to create quality videos to use on the platforms. The latter is created to streamline quality videos to the audience. Therefore, you can take this to your advantage and convey messages that you’d otherwise not be able to deliver perfectly.
Final Words on the Importance of OTT
The point is people have changed the way they watch TV. The old days where people used to gather in the sitting room to watch news and sports are long gone. Now, people want to watch using cheaper methods that they can access all the time, at friendly rates.
The shift has brought opportunities for marketers to utilize and reach a more targeted and larger audience.
References
- https://www.comscore.com/ita/Public-Relations/Blog/How-Important-is-the-OTT-Device-Market-if-the-Future-of-TV-is-Apps
- https://techcrunch.com/2018/03/28/over-the-top-only-u-s-households-nearly-tripled-since-2013-impacting-tv-ad-dollars/
Also read our article on “What is OTT vs. CTV?”
