With cord-cutters dominating in the TV industry, the viewership for videos using OTT advertising is growing at a rapid pace. Traditional style TV ads or commercials are now unable to provide companies with the same amount of reach as they could in the past. And they have also lost a lot of their appeal. If this trend continues, we could be in the last days of traditional TV commercials.
What Is OTT Advertising?
OTT stands for Over-the-Top. And that is any device or service you pay to stream digital content on your TV, computer, or mobile phone. OTT advertising is a lot like making commercials for use as regular TV ads.
The main difference is that the content streamed on an OTT platform. The technology has improved over the years and is now capable of offering marketers several more benefits. Now advertisers can benefit from reaching out to more customers thanks to the growing interest in streaming services.
Does This Mean Ads Will Now Be on All Streaming Services like Netflix?
No, premium streaming services such as Netflix or HBOGO has no intention at this time to begin adding advertisements to their content. But other platforms make good use of these ads to help lower the cost of member’s subscriptions, like Sling TV and Hulu. There are also some providers, such as Tubi.TV, Cheddar, and Crackle that offer free movies and shows. The ads help pay for the content shown.
Why is OTT Advertising So Popular Now?
Whether you are watching your favorite TV show or checking out the latest videos on YouTube, it is evident that we all spend more time watching some video content on our TVs, phones, or other devices. The idea of OTT advertising has become a popular choice for both old and new businesses alike for several reasons.
The OTT advertising community is still very new and very unknown. At this time, there is very little, if any, ad fraud to concern advertisers. That is because streaming platforms are closed and well-controlled systems.
Another reason why this option is so popular is that at this time, there are no standards strictly enforced for OTT advertising. Those who make these videos and use them for marketing purposes do not have to follow the regulations proposed by the Interactive Advertising Bureau or IAB.
What Audience has the Most Access to These OTT Ads?
There are three main groups of TV viewers that are in the Audience for OTT advertising. These are the Nevers, Cord Shavers, and the Cord Cutters.
The Nevers are those who still believe that cable TV is a valuable resource and will likely never stop using this service for their TV viewing, even if they decide to add on streaming services like Netflix or Hulu.
The Cord shavers are those who pay for subscription TV regularly but have recently decided to cut down on their plans and slowly to switch over to streaming options.
The Cord Cutters have canceled all their cable or satellite TV subscriptions and are now strictly using streaming platforms for all their TV viewing.
Are You Interested in Trying OTT Advertising?
If you would like to give OTT or CTV advertising a try because you feel it would help your company grow, the experts here at Moblyft can help. We understand how OTT marketing works and what you need to do to get started with a successful marketing plan. Get in touch with our team today to learn more about this modern form of advertising and how it can help your company gain more loyal customers.