In today’s rapidly evolving media landscape, entertainment is no longer confined to the bars of traditional TV schedules or cable subscriptions. Instead, content flows seamlessly across screens, from smart TVs to smartphones, right into viewers’ hands whenever they want. This shift has revolutionized how we consume our favorite shows, but this isn’t the full story… it’s also reshaping how businesses reach and engage extremely specific audiences in more dynamic and effective ways. Let’s dive deeper into the game-changing world of OTT marketing strategy and why it’s become essential for staying ahead in today’s digital age…
OTT stands for “Over The Top,” and refers to the delivery mechanism for TV/video content consumed via an internet connection, or “over the top of,” traditional network providers, rather than a cable or satellite provider. OTT services include Netflix, Hulu, Amazon Prime Video, and Disney+, etc.. To better understand the components of an OTT marketing strategy, take a look at this diagram, which illustrates the range of streaming services, devices, and connected TVs (CTVs) that make up the OTT ecosystem—each offering unique opportunities for precise audience targeting.
As of 2024, the global OTT market is projected to reach $126.5 billion in revenue in the U.S. alone, with worldwide earnings expected to exceed $476 billion by 2027. This shocking growth reveals the increasing consumer shift toward online streaming platforms and highlights the crucial role of an effective OTT marketing strategy in an ever-expanding market. Some assume OTT is killing TV, but in fact, studies show OTT correlates with increased interest and awareness in TV channels and entertainment media brands. It’s simply a matter of how media is consumed: According to the Video Advertising Bureau, 81% of OTT viewers say it’s important to watch TV shows whenever they want.
What is OTT Marketing Strategy?
OTT has become an increasingly important platform for advertisers and chief marketing officers (CMOs), as it provides a new way to reach consumers and target ads based on their interests and behavior. OTT marketing strategy refers to the strategy advertisers use to deliver targeted advertisements on OTT platforms. These platforms are a great way for marketers to reach viewers based on their specific viewing habits and behaviors by collecting data from user activity to create personalized, relevant ad content that resonates. In our digital world, knowing how to use an effective OTT marketing strategy helps advertisers engage cord-cutters and cord-nevers (those who primarily consume content online) and engage audiences who value the flexibility of streaming.
What are the Key Components of an Effective OTT Marketing Strategy?
- Audience Segmentation: OTT marketing strategy reaches an engaged, tech-savvy audience, often consisting of cord-cutters who prefer streaming over traditional cable. This makes them an appealing target for advertisers due to their interest in convenience and flexibility.
- Personalization: OTT marketing strategy enables precise targeting, allowing businesses to tailor ads based on viewers’ interests and behaviors. Advertisers can create personalized ads, maximizing their ROI by reaching audiences who are already interested in specific products or services. For example, an advertiser could target ads to viewers who have recently searched for a particular product or service, or who have previously engaged with their brand on social media.
- Measurability: OTT marketing strategy offers strong measurability, allowing advertisers to track campaign performance with detailed analytics. This helps businesses make data-driven decisions to continually improve their targeting and messaging for better results.
- Cross-Platform Integration: Successful OTT marketing requires a unified strategy across multiple streaming platforms. Integrating campaigns ensures broader reach and consistent messaging, maximizing effectiveness across different services.
What are the Benefits/Challenges of using an OTT Marketing Strategy?
Put simply, here are the two most rewarding benefits of a strong OTT marketing strategy:
- Higher Engagement: Ability to connect with highly engaged viewers.
- Increased ROI: Helps in optimizing ad spend by ensuring content reaches the right viewers.
However, there are also some challenges associated with OTT advertising that advertisers and CMOs need to be aware of.
- Fragmentation: As there are many different OTT platforms and services, each with their own audience and targeting options, OTT can make it difficult for advertisers to develop a cohesive OTT marketing strategy that reaches a large and diverse audience.
- Ad blocking: As many OTT viewers use ad blockers to avoid seeing ads, OTT can make it difficult for advertisers to reach certain segments of the audience, particularly younger viewers who are more likely to use ad blockers.
Use Cases: OTT Marketing Strategy in Action
Over the years, Criterion Global as a paid media agency with proven results, has worked with a number of clients to leverage the power of OTT marketing strategy in reaching niche audiences. When traditional is too broad a platform and budget needs to be allocated precisely to generate justifiable returns, Criterion Global deploys OTT marketing strategy to drive results.
Case 1: Nizuc Resort and Residences – Targeting Affluent Consumers with Precision
Nizuc, a luxury all-inclusive resort located in the Mayan Riviera, needed to develop a strategy reach an exclusive and wealthy market segment. Unlike large, mass-market resorts that rely on broad reach through traditional TV, Nizuc aimed to connect with a more refined demographic. Their target consumers consist of travelers looking for high-end vacation experiences, making precision targeting a key opportunity that couldn’t be missed. Criterion Global, with expertise in high net worth marketing and luxury marketing expertise, pinpointed OTT as the best solution.
Using OTT, Criterion Global targeted Nizuc’s core audience by focusing on key feeder markets and targeting potential guests during peak travel seasons. This strategy allowed Nizuc to “pulse” their marketing, reaching the right viewers at the perfect moments opportunistically during months when the air outside was frigid and a warm Nizuc breeze sounded more enticing than ever. By leveraging advanced OTT targeting, Nizuc and Criterion Global successfully captured the attention of consumers who valued exclusivity and were more likely to convert, rather than casting a wide net to a general audience. This led the resort to achieve a stronger return on investment (ROI) and drove high-quality leads directly to Nizuc.com.
Case 2: PURE Insurance – Precision Targeting with Dynamic First-Party Data
PURE, a premium insurance company known for exceptional customer service, faced a unique challenge: reaching a highly niche, affluent target audience. PURE’s niche within the “luxury” HNWI insurance market meant they needed to connect with consumers who not only valued peace of mind but were also willing to pay for it.
Criterion Global crafted an OTT marketing strategy for PURE that leveraged their constantly evolving first-party data. PURE’s data tracked consumer behavior and key risk factors; OTT proved to be the perfect channel for this level of dynamic targeting. Using OTT’s flexibility to their advantage, Criterion Global deployed ads that could adapt in real-time to PURE’s updated data, ensuring the company reaches the right people at the right times. With OTT marketing strategy, PURE was able to deliver highly personalized ads to their specific audience, increasing brand loyalty and driving new policy sign-ups on pureinsurance.com without wasting budget on less relevant audiences.
These two cases clearly demonstrate the impact a finely-tuned OTT marketing strategy can have for businesses with niche, high-end audiences. By focusing on precision and leveraging data, both Nizuc and PURE successfully reached their ideal consumers while optimizing their marketing spend. Looking to elevate your brand with a targeted OTT marketing strategy? Contact Criterion Global to unlock precise, data-driven solutions that connect you with the right audience at the right time. Let us help you turn opportunity into success!
Despite these challenges, having an OTT marketing strategy is important for businesses that are looking to reach a highly engaged and tech-savvy audience. As more and more consumers cut the cord and turn to streaming services for their entertainment needs, OTT advertising will become an increasingly important part of the advertising landscape. Advertisers and CMOs will need to stay up to date with the latest trends and best practices in order to succeed in this dynamic and rapidly changing environment.
Sources / Suggested References:
- Video Advertising Bureau | Setting The Stage: 15 Streaming Trends That Will Impact Marketing Plans in 2023
- Recommended reading: Criterion Global | Video 360°: TV + Digital Video Strategy