OTT Advertising:
What It Is and How It Works

Over the top advertising, or OTT advertising, refers to ads that are shown through streaming services. Ads that pop up on an Apple TV, on Hulu, or on Amazon Prime Video are all OTT ads. In 2018, OTT advertising grew by 54 percent – and many in the industry believe it is on track to replace traditional TV advertising relatively soon.

Understanding the specifics of the OTT industry, and how it can benefit your business, can help you harness this impressive growth. Read on to learn more about OTT advertising.

Why OTT Advertising?

OTT advertising services are a great way to reach customers that have cut the cord. It’s fast growth also means that there are tons of opportunities for you to take advantage of.

Large Audience

According to the Video Advertising Bureau, 71 percent of all internet users make use of an OTT streaming service at least once a month. That’s a huge market share that you won’t be able to access through regular advertising streams.

Traditional Format with New-Age Technology

Since OTT ads are completely online, they offer a greater degree of targeting and reporting than traditional TV ads. They bridge the gap between online ads and cable TV ads, allowing you to effectively make use of video as you would on cable, but use the analytics of digital media to target those who are the most receptive to your brand.

In practice, this means that you can segment your ads by area – not by media market, but by city or town. This helps keep costs low: you’re only paying for people who are within your parameters, instead of blanketing an entire media market.

No Skipping

Though this will depend on the platform, OTT advertising can lead to a better impression on your audience because they cannot be skipped. Since free streaming services like Hulu will lock their content behind an ad, you are guaranteed a full ad impression. Since OTT ads are also on TV, it’s unlikely that your audience will be able to switch tabs or click away.

Further, since platforms like Hulu are completely closed and run their own ads, there is very little chance of ad fraud. Digital ads can run into issues, as publishers may try to find ways to increase their revenue from ad networks by generating false clicks and traffic.

Reach a New Audience

OTT advertising is still a nascent industry. As time goes on, it will grow and change, and the way that advertisers are able to reach their audience will as well.

Now that you know some of the key benefits associated with promoting your brand through OTT ad channels, you can begin to develop a strategy. Taking advantage of such a new industry early on is also highly beneficial because there is less competition to worry about.

For more information about developing an advertising strategy for your business, feel free to check out the Marketing and Business sections of our website.