With the birth of new content platforms comes the opportunity for new types of marketing. Streaming services are rising rapidly in popularity, but only a few brands have begun taking advantage of this growing market and how to advertise within it.
Simply put, OTT advertising — short for over-the-top advertising — are the ads and promotional content on streaming apps and devices like Hulu and Apple TV. 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.
While these ads look just like traditional commercials, they’re unique, too. Television commercials are broadcast to everyone watching a particular channel at that time. Blocks of air time are sold in specific slots per show and per channel.
OTT advertising, however, can be more targeted to people in certain demographics based on the streaming service data. Similar to social media advertising, you can target an audience and focus different ads on different demographics.
With more and more people cutting the cord to cable and decreasing their monthly entertainment spending with streaming plans, many of those services and devices have an option that includes advertising: Hulu, YouTube, Peacock, Chromecast, Roku, and Apple TV, to start.
Internationally, the streaming services marketing is projected to grow by $149 million by 2024. In the last year, streaming services across the world have exploded with new users seeking entertainment options during the pandemic. In the United States and Mexico alone, video streaming increased by 37% in 2020.
With the pandemic fading, advertising spending is “red hot right now,” Henry Blodget, a co-founder of Insider, told The New York Times. “The economy is cranking up, travel and leisure are coming back, and consumers are emerging from their pandemic cocoons.”
A recent report showed advertising in digital media grew by 7 percent in 2020 while television advertising declined and growth in print advertising is almost nonexistent.
While tv commercials and OTT advertising look the same, there are some big benefits to OTT advertising, too.
For anyone with an online business presence, OTT advertising is a strong way to go. Many devices allow consumers to interact directly with the ad, cutting down the need to remember your company name, a coupon code, or the specific product they want. You can embed a simple link and customers are taken directly to what they want, leading to a higher chance of purchase, too.
Reports expect OTT ad spending to reach more than $14 billion by 2023. The combination of premium TV advertising and digital media precision makes it a best of both worlds scenario for one fee.
“It sits in a really sweet spot,” Arun Kumar, global president of Cadreon, a digital ad buying arm of IPG Mediabrands, told The Wall Street Journal. “It allows advertisers to be more targeted in an environment that feels good. There is genuinely a lot of interest across all clients.”
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.