The cord-cutting phenomenon is going strong, with many people across the United States and internationally ditching the typical cable or satellite subscription for more personalized streaming options.

With people streaming more now than ever, and more cutting the cord every day, we’re seeing more brands make the jump to OTT — or over-the-top — advertising to reach more potential customers and take advantage of the always-growing streaming video market.

OTT advertising ​​are the ads and promotional content on streaming apps and devices like Hulu, Apple TV, and even YouTube. Since there is no way to show traditional television commercials to viewers on streaming platforms, advertisers need to use specialized OTT platforms to make and distribute their content.

Ad-supported OTT TV is currently a fast-growing area for television and could be the future of TV, and for good reason. Now, people across the planet are simultaneously streaming and even binging the same shows — all with commercial space that needs filling. Here we explore some of the key benefits of OTT Advertising.

Why Marketers Choose Over-The-Top Advertising

OTT advertising is quickly climbing to the top choice of content marketers. While OTT ads look just like typical commercials, they’re a smarter way to advertise with video. Projections show that OTT advertising should take a 20% jump this year, for a $1.2 billion market compared to $1 billion in 2020.

More sophisticated technology has led to more advanced targeting abilities with advanced analytics and dynamic ad tools — all for less money than a traditional TV ad spot.

The latest data shows us that OTT offers a better return on your investment, better engagement, and better viewership metrics than almost any other platform.

Targeting

Television commercials are broadcast to everyone watching that channel at that time. Blocks of air time are sold in specific slots per show and per channel. OTT advertising, however, is more targeted to people in specific demographics based on the streaming service data. Like social media advertising, you can target an audience and focus different ads on different groups.

Advanced Analytics

Another benefit is data. Streaming services collect tons of viewing data from their users, often across multiple devices. This analytical data can give you a deeper insight to your potential customers and tailor future advertising for a range of audiences. Plus, it offers quick insight into which of your ads are increasing your return on investment and which are landing on deaf ears.

Dynamic Ad Tools

Beyond targeting specific audiences, you can even target a specific type of viewer with dynamic ad insertion. This allows advertisers to swap out ad creatives in linear, live, or video-on-demand content. This gives you more nuanced targeting, more relevant ads, and an increased likelihood of engagement and conversion.

Cost-Effectiveness

Since television broadcasts only have so much advertising real estate to fill, they can charge more per slot. While OTT advertising on average costs about $40 for roughly 1,000 impressions, traditional TV ad rates can be as high as $200 to reach the same number of screens. Coupled with the advanced metrics and data to target specific audiences and viewers, OTT advertising offers more bang for your buck currently than television.

Contact Us Today

If you’re looking to dip your toes into the OTT advertising market, we can help! Contact us today and let us help get your brand message in front of younger demographics on phones, tablets, laptops, and televisions all at once.