How OTT Ads on Connected TV are Shaping Television Marketing?

    Over-the-Top (OTT) content and ads are delivered via the internet without using a traditional cable or satellite TV provider. They are a cheaper, more flexible alternative to traditional TV advertising, as content arrives via streaming and video-on-demand (VOD) services.

    Connected TV (CTV) is connected to the internet, allowing it to stream content from various sources. Examples of CTVs include PlayStation consoles, Apple TVs, Roku devices, and Amazon Fire Sticks.

    An OTT example would include something like Netflix, Amazon Prime, or Hulu. TV networks now offer their own OTT services, with Paramount+, HBO Max, Disney+, and NBC’s Peacock being the most recent and well-known.

    Advertising on CTV is growing in popularity, as it provides marketers with a way to reach the growing, cord-cutting consumer base that is electing to watch more content online. According to eMarketer, spending on CTV ads reached $10.81 billion in 2021, up from approximately $7 billion in 2019.

    OTT and CTV advertising methods offer several advantages over traditional TV ad strategies, including the following:

    More targeted advertising

    OTT/CTV ads target specific demographics, interests, and households, allowing for more accurate targeting of potential customers and higher conversion rates. OTT advertising also provides more precision than traditional TV advertising.

    Targeting ensures that your ad reaches the audience that is most likely to be interested in your product or service. Since OTT ads function through the internet, they can be more specialized than other ads, meaning advertisers can reach their preferred consumers more effectively with more relevant ads.

    Increased reach

    Through OTT advertising, businesses are no longer limited to an audience that consists of only the number of people who subscribe to a particular cable or satellite TV service.

    OTT ads can be seen by anyone with an internet connection, increasing your potential reach significantly. Utilizing shorter ads in more places also helps increase your reach, as you can place your ad on multiple OTT platforms and run it as often as you’d like.

    More engaging content

    OTT/CTV ads are more interactive and engaging than traditional TV ads, which makes them more likely to capture an audience’s attention. CTV viewers are used to seeing interactive ads that allow them to click for more information or sign up for free trials.

    Advertisers can also take advantage of second screens by incorporating interactive, cross-platform elements. For example, an ad for a new movie could provide a link to buy tickets on your phone.

    OTT ads are more engaging than traditional TV ads because of their interactivity and personalization. Viewers can choose to watch an ad or skip it while providing feedback on the ad through ratings and comments, thus allowing businesses the chance to create more ads that are more likely to resonate with viewers.

    More measurable results

    Another benefit of OTT ads is that their analytics are more measurable than traditional TV ads, meaning advertisers can gauge their ads’ performance more effectively and make necessary adjustments.

    OTT/CTV platforms provide detailed data on ad performance, allowing marketers to track and optimize their campaigns in real-time. The ad’s click-through rate (CTR), cost-per-click (CPC), and conversion rate are all important metrics to track.

    Advertisers can also A/B test different ads to see which performs better with their target audience. Such a granular data analysis level is impossible with traditional TV advertising.

    Increased ROI

    As OTT advertising is more targeted and engaging, it often leads to a higher return on investment (ROI) than traditional TV advertising. With OTT ads, you can track how many viewers took action after seeing them, allowing you to fine-tune your ad campaigns for maximum results.

    Focusing on details such as an ad’s creativity, placement, and frequency, you can maximize your profits and begin to see positive results from your OTT advertising campaigns.

    New opportunities

    OTT advertising provides opportunities to advertisers not traditionally involved in television advertising. For example, OTT ads can promote products and services on e-commerce platforms such as Amazon and eBay. OTT ads can also reach new audiences, given that OTT platforms are location-agnostic, unlike conventional TV.

    As OTT and CTV continue to grow in popularity, they are reshaping the landscape of television marketing. These changes provide new opportunities for businesses to reach more consumers and achieve a higher ROI on advertising spending.

    Marketers who want to stay ahead of the curve should consider incorporating OTT and CTV into their advertising strategy. Now is the time to start if you’re not already using OTT advertising to promote your business.



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