A “cord cutter” is a user who once paid for traditional tv through a cable or satellite provider but then cancelled (or, “cut”) their service for a more cost-effective option – usually a streaming service. Cord cutting accounts for 20% of US households this year and with more people turning away from traditional TV, it’s more important now than ever to reach them where they are viewing content. Cue OTT.
What is OTT?
OTT stands for “over-the-top,” and references devices that go “over-the-top” of a cable box so that a user can access content via the internet. OTT devices (Smart TVs, digital media players, personal computers, & mobile devices) are how its users consume TV and movies through streaming services that run through the internet rather than through cable or satellite services.
Why is OTT advertising important?
According to Statista, OTT service users in the United States amounted to 55.3 percent in 2019 (more than half of the U.S. population) and is expected to increase to 60.6 percent by 2023.
With more and more people choosing to “cut the cord,” and many people being “cord nevers” (never having a traditional cable or satellite TV experience), OTTs offer you another way to get in front of your target audience with highly targeted and non-skippable advertisements.
What’s the difference between OTT and Connected TV?
OTT is a delivery mechanism for video content whereas a Connected TV is a type of device that displays OTT content. OTT content can be accessed through devices such as a SmartTVs, gaming consoles, mobile, tablet, desktop, and more. Through those devices, is how you access the OTT streaming platforms including HBO GO, Hulu, Netflix, Prime Video, YouTubeTV, etc.
What are the different kinds of advertising on OTT?
According to Forbes, 52% of U.S. adults use at least one OTT service, while almost one third of Americans 55 and older watch OTT content, meaning it’s a great tool to utilize in your digital advertising strategy.
There are three subcategories of OTT advertising:
OTT advertisements are most commonly videos that are played during an ad pod, which can range in time, but are typically ranging from 60 to 180 seconds. However, not all have to be video. Depending on the platform, your company’s logo can appear when a user pauses their content, views the platform’s cover story and more!
OTT ads also have the ability to drive traffic directly from the ad to your company’s website on certain devices including users who are streaming OTT content on mobile, tablet, desktop, and gaming consoles.
What are the advantages of OTT advertising?
There are several advantages of OTT advertising. For one, the platforms are currently saturated with national campaigns meaning that a lot of local businesses aren’t currently utilizing OTT opportunities, so by opting in you’ll have a leg up on the competition.
Unlike traditional TV, advertising on OTT can be highly targeted so your message is being delivered to a specific audience determined by a users’ demographic, geographic location, viewing behavior, household income, and more.
The ads are also non-skippable which reduces ad spend waste because you’re paying for actual views rather than ad placement.
How can TAG help?
As a full-service advertising agency, we have a whole digital team whose jobs are to stay in-the-know on emerging platforms and strategies for your brand.
Ready to launch your brand into the digital sphere? Let’s talk!