In the current economy, businesses must be diligent with their advertising strategies to remain competitive in their markets. CTV advertising, or advertisements that air on television, have historically been the most popular way to advertise products and services.
It’s only a matter of time before over-the-top (OTT) streaming comes to rule the day as the most effective form of digital marketing today. Therefore, you should start planning your OTT advertising strategy to stay ahead of the competition in 2022.
This article will explore how OTT advertising platforms and online video can be used by businesses to get an edge over their competitors in a business landscape that is moving away from traditional TV and toward digital streaming services.
What is Over-the-Top (OTT) Video?
OTT video is online streaming where users can subscribe and watch live or on-demand content through an internet connection. It doesn’t require a cable or satellite television subscription and can also be watched on mobile devices.
The two biggest providers of OTT video are Netflix and YouTube, but there are many smaller ones as well. Examples include HBO Now, Sling TV, PlayStation Vue, Hulu with Live TV, and Amazon Prime Video.
These services offer programs from major broadcast networks like ABC, NBC, CBS, and cable channels like AMC and FX. In addition, they have original series that you won’t find anywhere else.
With the rise of services like Netflix, Hulu, and Amazon Prime Instant Video, consumers are no longer tied to having cable television as their only means of viewing content. In fact, according to Statista, 24.6 million households in the US had cut their cable or satellite subscription as of 2019.
Because these services stream directly to your device, you don’t need a cable box or satellite dish. You can watch them wherever you go as long as you have an internet connection.
How Will You Benefit from Using OTT Video Content?
With more and more users cutting cable, business owners will have to go online to stay relevant. The biggest platform for video advertising is linear television, but a growing niche can help you reach an even wider audience: Over-the-top (OTT) video content.
In fact, according to eMarketer, US adults who watch video via broadband connections are expected to increase from 29% in 2016 to 37% by 2022. By embracing OTT advertising now, businesses can take advantage of its growth potential before it’s too late.
If you need any further convincing, here are four reasons why your business should consider using OTT advertising:
- Your Brand Can Go Global with Less Effort
One of the biggest benefits of OTT advertising is that it allows you to target audiences worldwide with just one campaign—and thanks to increased globalization, international markets are growing fast.
A Nielsen report shows that about 72% of internet users worldwide access at least one social media site every day. So if your brand is not engaging with these audiences yet, it’s already falling behind.
- You Can Reach Users Anywhere They Are
OTT ads allow you to reach users across multiple devices—from their phones to their tablets to their computers.
And as viewers continue transitioning away from traditional viewing habits and toward digital platforms, brands need to follow them wherever they go.
- You Can Create Video Ads Quickly and Easily
Creating a high-quality video ad doesn’t require much time or effort. Plus, since most OTT services offer affordable options for small businesses, you won’t have to worry about spending thousands of dollars on video costs.
- It’s More Affordable Than Traditional Media
OTT offers some of the best value for money compared to other forms of advertising, such as radio and print. For example, Facebook only charges $0.30 per thousand impressions (CPM) compared to $9–$10 per thousand impressions (CPM) for a standard 30-second spot during prime time on major networks like CBS or NBC.
- You Can Learn From Successful Campaigns
When was the last time you saw a successful marketing campaign and thought, “Wow! I wish I could do something like that!?” Unfortunately, if you haven’t tried something new lately, the chances are good that what you’re doing isn’t working.
- It Allows You To Target Your Audience
Utilizing business data such as buying power and location, CTV enables brands to make highly relevant video content for a specific audience. For example, a company looking to sell luxury goods would want marketing videos tailored toward wealthy individuals with high disposable income who are frequently seen shopping on Rodeo Drive or St. Mark’s Place. By targeting these people via CTV, they can reach them on devices they use most often and where they’re most likely to be receptive to advertising.
Final Thoughts
CTV vs. OTT advertising is about more than just new technologies, it’s a shift in consumer expectations. This shift moves traditional networks away from 50% of their audience, which will only become more pronounced with time.
If advertisers want their messages to reach even 10% of that audience, they need to adapt and create targeted TV marketing campaigns across multiple channels. Otherwise, they risk losing revenue by not adopting new ad formats and methods for reaching viewers.
In short, it’s time to move beyond good enough and get serious about finding ways to connect with consumers on every device. The future of your business depends on it.