When people first learn that OTT marketing refers to over-the-top marketing, it tends to obscure the actual meaning. You might begin to think of the new trend toward ads that don’t make immediate sense or those that use satire and outlandish claims to catch the audience’s attention. This is a reasonable conclusion. However, in reality, an OTT marketing strategy refers to inserting ads into streamed content.
What Exactly Is OTT Marketing?
OTT streaming primarily refers to content that is distributed via the internet or “over the top” of the internet platform. Examples of this include watching movies on Netflix, listening to podcasts on Spotify, or viewing user-generated content on YouTube. All of these create room for marketing companies to get their clients before an audience that no longer subscribes to cable TV service or listens to ads on the radio. These ads are the basis of OTT strategies.
An OTT strategy doesn’t just include audio ads on Spotify or audiovisual ads that interrupt Facebook videos. Even physical banners on visual platforms can make a difference. They are also less disruptive than the ads that quickly send consumers to invest in ad-free services, such as YouTube Premium. Still, in most cases, OTT ads are usually a direct part of the content.
You might wonder how these ads differ at all from those that people already became accustomed to seeing on cable TV. The easy answer is that these are targeted. On cable TV, all viewers in a particular location see the same ads on the same channel. On YouTube, for instance, consumers could all subscribe to the same channels and see different targeted ads because of their browsing history.
Why Does It Matter?
As alluded to above, OTT done wrong can turn customers off. Instead of encouraging sales, you could inspire eye rolls every time your video ad pops up to interrupt the viewing experience. When done right, however, there are some benefits to take advantage of.
Forbes notes that 64% of consumers are more likely to buy a product after watching a video online about it. It is no wonder then that by 2017, video ads already accounted for more than a third of online ad budgets. Consumers cannot skip OTT ads and they display full screen. When people sit out these ads, they become exposed to timely information about new products and services that might meet their needs.
Some people battle with pain points for a long time before seeking solutions. There are also people who assume there are no solutions to their specific problem. This may have even been true during earlier research. With new advancements made every day, people lose track. Sometimes that ad they encounter is how the individual found out that a new solution to their problem even existed in the first place.
Many business owners turn down video ads because they believe it is more expensive. This is only half true. Creating video ads may cost more money short-term than creating a banner or recording an audio ad. However, running video ads on YouTube, for instance, are relatively inexpensive, even compared to Facebook. The average cost-per-view can get as low as $0.10. Coupled with a 90% completion rate for these types of ads, your company gets the attention it needs to thrive.
How Can You Capitalize on It?
Like any other type of marketing strategy, OTT requires research and planning. The effectiveness of each video ad comes down to how well you tailor your content toward the demographic you target. To ensure they hit the mark every time, proactive business owners work with experienced marketing agencies.
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