NYC/MIA
08:55 pm
London
01:55 am
SG/HK
08:55 am
English
English Français Deutsch Italiano 日本語 한국어
CONTACT
→

What is OTT “Over The Top”?

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.

In Q1 2018, 71% of internet users used an OTT service at least once per month. Though “cord cutting” is a reality, 70% of OTT households also have a multichannel subscription, such as a cable provider.

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?

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.

What is the benefits of OTT?

  • OTT allows businesses to reach a highly engaged and often affluent audience. OTT viewers are often cord-cutters or cord-nevers, meaning they do not subscribe to traditional cable or satellite services. These viewers tend to be tech-savvy and value the flexibility and convenience of OTT services, making them an attractive target for advertisers.
  • OTT also provides a high degree of targeting and personalization, as advertisers can use data to create highly customized ads that are tailored to the interests and behavior of individual viewers. This can help businesses optimize their advertising spend and maximize the ROI of their campaigns. 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.
  • Another benefit of OTT advertising is that it offers a high degree of measurability and transparency. Advertisers can use a variety of tools and analytics to track the success of their campaigns and make data-driven decisions about how to optimize their ad spend. This can help businesses improve their targeting and messaging over time and achieve better results with their campaigns.

What is the challenges associated with OTT?

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 and effective OTT advertising 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.

Despite these challenges, OTT advertising is an important platform 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: