Lately, everybody seems to be talking about OTT. Short for ‘over-the-top,’ OTT refers to a media service offered directly to a consumer over top of their device. Streaming services have been winning the war against linear TV for a while now, and most experts agree that traditional forms of TV, such as cable, don’t have much longer to go.
And where the views go, so does the advertising revenue. As a result, OTT advertising is booming, and brands are starting to understand its importance in marketing campaigns.
Comparing linear TV advertising to OTT advertising is unfair— it’s the welterweight novice vs. the heavyweight champ. Linear TV ads are static, have zero interaction, and don’t allow a business to target personas with bespoke ads designed to appeal specifically to them. OTT ads do all of that and more.
The Power of CTV
Connected TV, or CTV for short, refers to smart TVs or devices that connect to the internet which facilitates OTT services. The most famous examples of CTV devices are Chromecast, Roku, Amazon Fire Stick, and gaming consoles like Xbox and PlayStation. Most TVs sold today have streaming capability, and many connect directly to streaming services.
CTV is, therefore, the new TV, and consumers have a massive choice of streaming services and various subscription options. These include:
- Netflix
- Amazon Prime Video
- Disney+
- Hulu
- HBO Max
- Peacock
- Paramount+
- Apple TV+
According to the stats, 80 percent of U.S. households have at least one smart TV or device. CTV is quite clearly here to stay and, as such, is integral to any OTT marketing strategy. Connected TV advertising is something that businesses and brands cannot do without if they want to capture the biggest media-consuming market effectively.
The Benefits of CTV Advertising
Besides being the obvious choice in terms of market reach, CTV advertising has several other benefits.
- A highly engaged audience: CTV consumers are highly active. They stream often, and they’re highly engaged in the content they consume, including the advertising.
- CTV is designed with advertising in mind: Most people subscribe to slightly cheaper options than the premium bundles, and these options usually come standard with ads that cannot be skipped.
- Highly targeted: First-party data can be collected and used to help create and market perfectly to personas. There is no other platform that successfully facilitates this type of targeted marketing.
- Cost-saving: CTV advertising is much more effective, but it’s also much cheaper than traditional TV advertising.
- Flexible options: CTV ads can take various forms, lengths, and styles, making them more versatile than traditional TV advertising.
- Omnichannel marketing integration means that one brand message is delivered across all digital channels. CTV is one of the most effective ways to reach a large and personalized audience and deliver your brand message.
Types of CTV Ads
There are three broad categories of CTV ads, although each type can be tailored to suit your specific needs.
- In-stream video ads: Those unskippable or partially skippable ads that pop up before, during and after streams are known as in-stream video ads. With CTV advertising, you’ll be able to serve the most relevant and targeted video ad to the perfect audience. That means that the ad is interesting and engaging to your audience and won’t seem like an irritation.
- Interactive ads: While most CTV ads will have an element of interaction, particularly towards the end, some ads are entirely designed with interaction in mind. These ads allow people to click and be directed to a particular landing page or website.
- Home Screen ads: These are the more discreet and straightforward ads usually placed before a show is about to begin. Viewers are given an option to ‘learn more’ and will be directed to a landing page or website.
As CTV becomes more widespread and popular, OTT advertising campaigns are vital in any brand’s marketing toolkit. Brands that aren’t using this versatile and highly effective tool are missing out and should get on board immediately!
