Over-The-Top (OTT) delivers streaming TV content to viewers over the internet through an app or device onto a TV (or PC, Tablet, or Smartphone) without requiring users to subscribe to a wired cable, telco or satellite TV service.
OTT common devices:
- Game consoles
- Smart TV (in-TV apps like HBO Go and Netflix)
- Streaming Boxes (Samsung Allshare Cast, Amazon Fire TV, Apple TV).
- Internet-enabled smart blue-ray/DVD players
- HDMI sticks (Amazon Fire TV Stick, Chromecast, Roku).
OTT Advertising is streamed to the media through OTT platforms. This technology is expected to make a big difference for marketers in 2020.
OTT Ad revenue is expected to shoot to 60% from 45% over the next 10 years. If you are early in OTT advertising and an AdTech pioneer you are looking at an impressive return in the future.
How OTT Works.
OTT has been growing over the years and is speculated to reach 197.7 million users monthly by 2022 in the US.
Targeting to a Granular Level
Extremely specific targeting is one of the greatest strengths of OTT advertising. You can target users using geographic data, demographics and countless other ways. It increases the efficiency of your advertising money and saves resources that would have otherwise been used advertising for the wrong market.
Over the Top Analytics
Many OTT platforms provide data analysis for their products. OTT platforms offer different types of data and can subdivide the information by placement or targeting.
ZERO Wasted Advertising
When running any type of business your greatest goal is to minimize expenses and maximize ROI. A limited number of impressions can be bought for a specific audience to maximize efficiency and minimize costs.
Create quality videos to use on the OTT platforms. Businesses can take advantage of this to deliver high-quality videos, content and deep messages that may not be otherwise easily conveyed to the audience.
How are OTT Ads Delivered?
A study by Pew Research Center showed that 61% of Americans aged between 18 and 29, access TV through streaming services; only 31% use cable services. A small 5% watch TV through a digital antenna. The statistics for ages 50-64 on the same are; 10%, 70% and 15% correspondingly.
Ads on over-the-top services are more affordable, highly targeted, and not subject to the constraints posed by the FCC on television broadcasters.
The OTT ad space is significantly less competitive than the TV – for now. In order to get the highest ROI on advertising in this emerging market, businesses need to start using OTT now before major competitors begin dominating the market like we see with TV.