OTT advertising means over-the-top and initially got its name by replacing or going “over the top” of cable boxes and providing access to TV content.
Television formatted video is delivered directly through the internet and bypasses traditional television platforms like cable/broadcast providers.
Examples of OTT include Youtube, Netflix, Disney, Hulu, Sling, etc.
Benefits of OTT Advertising
Costs for advertising spots are significantly cheaper. Spots run between $25 – $40 per CPM (Cost per Thousand) where TV advertising rates can range from $40 to $200 or more depending on demand.TV Ad campaigns are more flexible. Local campaigns can start as low as $2000.00 and easily scale up.
Doesn’t require pre-planned, expensive broad media buys.
OTT Advertisers can now purchase OTT inventory programmatically and customize it with audience demographic and behavioral data to reach ideal markets.
You can build audiences based on:
- Search History
Robust Analytics and Reporting. OTT can report exact:
- Device Performance and Views
- Demographic Data
- Domain-Level Reporting
- Percentage of Video Watched
- Cost Per Click
- View Through Conversions
- Walk-In Conversions
Important facts about OTT Advertising:
In 2021, $9.5 billion of television advertising is going to be traded through programmatic auctions powered by DSPs and ad exchanges.
There are over 182 million OTT subscription users in the U.S. (eMarketer)
The number of subscriptions to video-on-demand services globally is expected to top 947 million by 2024. (Digital TV Research)
There are 820 million connected video devices in the U.S. and hundreds of different streaming services. (Video Advertising Bureau)
71% of Internet users use an OTT/CTV service at least once a month. (Video Advertising Bureau)
70% of OTT/CTV households have a multi-channel subscription. (Video Advertising Bureau)
81% of consumers saying that it’s important that they are able to watch TV programs wherever they want. (Video Advertising Bureau)
OTT accounts for 29% of TV viewing but so far has only captured 3% of TV ad budgets.
75% of ad views come from the coveted 18 to 34 demographic. (Nielsen)
One-third of OTT/CTV visits are over an hour long and those viewers are completing 98% of all video ads. (FreeWheel)
Connected TV ads outperform those of linear TV with 3.8 times higher retention rate.
(Engaging the Mind: How Consumers Really Respond to Connected TV and Linear TV Ads)
OTT campaigns produce a greater lift in brand awareness and favorability than traditional digital display ads on desktop and mobile. (Hulu)