Growth of OTT Space – A new emerging Advertising Media for Brands

OTT services for Brands

These days everyone uses streaming sites like Netflix, HBO, Hotstar, and more to watch their favorite TV shows and movies. With so many users on these streaming platforms, It’s a lucrative space for streaming ads. 

‘OTT’ or ‘Over The Top’ advertising is the ads that are delivered on streaming sites. They are directly streamed to users in the form of video ads, banners, or sponsored content. 

80% of all Internet traffic is accounted for by streaming platforms. OTT advertising reaches targeted ads to streamers. It’s a game-changer as it bypasses tv channels and allows businesses to stream advertising directly to audiences globally, without the constraints of pre-planned scheduling and geographic limitations.

OTT is a billion-dollar industry with the industry projected to grow to 1039 billion by 2027.

Why is OTT such a game-changer? 

OTT is disrupting the world of above-the-line advertising and allowing digital marketers to run ad campaigns, just as they would on other digital mediums. Ads on OTT can have razor-edge targeting and scale-up for businesses that wish to grow faster.

OTT uses Data-Driven targeting and measuring of performance to meld digital advertising and erstwhile TV advertising.

Full-Funnel Advertising

The use of sales funnels in OTT advertising is possible because OTT is a medium that relies on engagement for results. OTT does more than just promote your brand. It gets people to engage with your advertising and hence becomes part of a sales funnel that moves customers to take the desired action.

Performance-driven marketing 

OTT does more than let you increase the reach and recall of your brand. It is performance-driven marketing and is akin to other digital marketing mediums that focus on reach, frequency, targeting, lapsed customers, target competitors, and more. 

Benefits of Over The Top Advertising 

       1. OTT offers precise targeting to marketers. Targeting can be based on interest, age, usage, incremental reach, and more.

       2. OTT has advanced ad relevance that improves the performance of advertising, as compared to conventional TV.

       3. OTT can supplement existing campaigns and in doing so, increase reach, frequency, and targeting. 

       4. Measurable results – OTT increases accountability as it quantifies results and gives scope for optimization.

OTT and the high-performance media mix

The popularity of OTTmarketing has increased ever since television is starting to take a back-seat to internet streaming. Online streaming today has become more data-driven. OTT has found to be successful in reaching out to younger audiences who have shown reduced interest in cable TV and more interest in streaming services. 

In the US, 60% of young people say that they use a streaming service to watch TV. The numbers in Asia are not far behind.

OTT services are becoming more sophisticated and data-driven, offering full-funnel targeting and attribution.

Where can OTT ads display?

OTT ads can display on the following devices:

  1. Mobile phones 
  2. Personal computers
  3. Streaming services like Netflix and Hulu
  4. Gaming consoles 

OTT advertising reaches these channels through designated OTT distribution channels. With so many viewers taking the OTT route to watch television online, OTT marketing should follow close behind to take advantage of the data-driven strategies it offers. 

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