With the sheer decline of standard cable TV over the past few years, consumers have shifted toward streaming services as their alternative entertainment source. Did you know that 3 out of 4 American consumers have either expanded or replaced their media sources by subscribing to OTT streaming services

These have become so common that you would be hard-pressed to find anyone who would not acknowledge the names of some of the industry giants such as Hulu or Netflix. The sudden increase in the popularity of OTT platforms is what caught the attention of many progressive advertisers.

OTT Streaming Business in General

OTT stands for Over-the-Top television that refers to the devices, which go “over” a cable box to offer the users access to TV content like Apple TV or Roku. Content in OTT channels is delivered through the internet instead of traditional cable or broadcast providers.

A CTV or connected TV is a connected device or television with an internet connection and a UI that allows users to access content via OTT app.

The word “streaming content” comes up concerning OTT ads. However, where exactly will consumers be watching such ads? Netflix was the early leader for streaming content, but customers are highly improbable to see any OTT ads on that platform. The reason behind that is because Netflix has made “commercial-free” a big part of their brand.

Nonetheless, OTT ads show on Netflix’s rival, Hulu. Their Hulu streaming will have occasional ads unless customers pay more for the commercial-free option. Also, you will find some free online streaming apps competing for customer attention, such as Pluto TV, Crackle, and Tubi. Such services are free as they massively depend on advertisements.

Why OTT Is the Right Place for Advertising?

OTT solution for advertising is an online-based, non-skippable immersive content format where advertising is sent straight to viewers over the internet. That is accomplished through streaming video devices or services, like connected or smart TVs.

OTT can also run on different devices ranging from Chromecast, Amazon Fire TV, Roku, Apple TV, Smart TVs, and gaming consoles. It offers advertisers to reach their target audience wherever they consume content.

Younger generations like to watch television online, but OTT has the potential to continue increasing. Similarly, OTT platforms such as PlayStation, Amazon Fire, Apple Tv, and Roku offer more choices than ever for viewing content from various OTT providers in one place.

Satellite and cable are both costlier than streaming subscriptions. That makes it a cost-efficient option for “cord cutters” and an appealing supplement to cable subscriptions. You see, all OTT offers features such as:

  • accessibility across different devices like computers, phones, tablets, and smart TVs
  • view programs at any given time, not just live
  • get extensive libraries of on-demand media

How Does OTT Advertising Work?

How OTT works is divided into two categories: ad delivery and ad insertion.

When we talk about OTT ad delivery, it’s crucial to consider how the OTT device and the streaming platform communicate. That communication is established through VPAID or VAST ad tags, which are meditators in the four-step ad delivery process:

  1. Audience Creation
  2. Campaign Pushing
  3. Ad Displaying
  4. Reporting

The second part of the inner workings of OTT advertising is how ads are added to the content. You will find two main ad insertion methods:

  1. Client-Side Ad Insertion (CSAI)

CSAI is an old ad insertion method where the ad loading process happens within the OTT box before getting delivered to the viewer. This method is inefficient as it’s prone to ad blockers.

  2. Server-Side Ad Insertion (SSAI)

SSAI advertising works so that the ad and the content go toward the end device as part of a single frame-by-frame stream. It’s rendered ineffective as the current ad-blocking technology has no means of differentiating ads from content streams. It is possible to even find server side ad insertion companies that offer interesting solutions for advertising.

Benefits of OTT Advertising

With the emergence of OTT advertising as a main digital marketing platform, you may be asking yourself, “what does it have to do with my business?”

There’s a wonderful opportunity for your company to see OTT advertising. Below are some of the major benefits of OTT platforms:

  • High quality impressions

With broadcast TV, you can make an advertisement that aims to be displayed to represent your target audience. Every impression from an OTT ad will be of high quality. Higher quality comes from the advanced data and targeting that can be utilized beyond the scope of the broadcast audience targeting.

  • Advanced analytics

Getting detailed data points from marketing efforts enables you to make the best decisions for your business. All OTT content is consumed through an internet connection. That implies you can receive detailed and advanced analytics on how your ad performed.

You can then augment advertisement for better performance to change your strategy and re-engage with your target audience.

  • Definite ad viewership

People watching your OTT content can’t skip ads, close their browser, install an ad blocker, or change the channel. That offers OTT advertisers a big advantage over investing in a broadcast television. They can guarantee that their target audience only watched the entirety of the ad.

Final Thoughts

OTT platforms are growing in popularity as more customers opt to Google to find and employ local businesses. OTT ads are a natural accompaniment to your overall digital marketing investments to make the brand lift and boost leads and sales.

OTT advertising can be a practical, ROI-driven way to market in an emerging marketplace. Nonetheless, just like any advertising medium, there is a learning curve.

Are you interested in knowing more about how to improve leads and sales from your website and lower your cost-per-lead? Professional OTT solution companies can help you.