The Benefits of OTT Advertising for Media Companies

Over-the-top (OTT) advertising has become increasingly popular in recent years as more and more people have shifted their viewing habits away from traditional TV and towards streaming services. OTT advertising can reach audiences who may not be watching traditional TV, and OTT ads can target specific audiences based on demographics, interests, and behaviors. For media companies, OTT represents a tremendous opportunity. Here’s what you need to know about OTT advertising - how it works, and why you should incorporate OTT into your media mix.

What is OTT advertising?

OTT advertising is different from traditional TV and connected TV advertising in a few ways. First, OTT content is delivered over the internet, rather than through cable or satellite. This means that viewers can watch their favorite shows on a variety of devices, including laptops, smartphones, and connected TVs. Second, OTT advertising is typically delivered in a more targeted way than traditional TV advertising. Advertisers can use data to identify specific audiences and deliver ads to those viewers, rather than relying on broad demographic categories like age and gender.

What’s the difference between OTT and CTV advertising?

Although the two are very similar in delivery and performance measurements, there’s a subtle difference between OTT and connected TV ads. CTV ads are delivered exclusively over televisions; OTT ads refers to the method of ad delivery, and encompasses all streaming video-enabled devices.

What are the benefits of OTT advertising?

“Cord-cutting” is no longer an eyebrow-raising curiosity. It’s estimated that between 2016 and 2021, 25.5 million households - equivalent to 50 million adult TV viewers - canceled their satellite or cable TV subscriptions. As streaming services continue to develop their offerings, notably live sports broadcasts, we expect that this number will continue to grow - and OTT ad revenue will continue to rise in the US, surpassing $1.37 billion in 2023.  As more and more viewers watch their favorite programming over a variety of devices, OTT advertising offers a number of considerable benefits:

A wider audience

OTT advertising allows advertisers to reach a wider viewing audience than with traditional TV advertising alone. With OTT, advertisers can target viewers who may not be watching traditional TV, such as younger audiences or cord-cutters; OTT ads will also reach those who might be watching streaming channels in addition to traditional cable and satellite TV. By incorporating OTT ads into their campaigns, advertisers can expand their reach and connect with audiences who may be harder to reach through traditional channels.

Better targeting

OTT advertising allows for more precise targeting than traditional TV advertising. Advertisers can use data to identify specific audiences based on demographics, interests, and behaviors, and deliver ads that are more relevant to those viewers. This not only improves the effectiveness of the ads, but also helps to reduce waste by ensuring that the right people are seeing the ads.

Greater flexibility

OTT advertising allows for greater flexibility than traditional TV advertising. Campaigns can be easily adjusted based on performance data, and can quickly make changes to their ads to improve their effectiveness. Additionally, OTT advertising allows for more creative freedom, as brands can experiment with different ad formats and styles to find what works best for their audience.

Cost-effective

OTT advertising can be a cost-effective way to reach audiences. Because they are targeted more precisely, OTT ads are only shown to people who are likely to be interested in the brand’s product or service. Additionally, because OTT ads can be delivered programmatically - as Frequence does - OTT advertising can be more efficient and cost-effective than traditional TV advertising.

Measurable results

Finally, OTT advertising allows for more measurable results than traditional TV advertising. Media companies who use Frequence can track the performance of their ads in real-time, and can easily adjust their campaigns based on the data they receive. This helps to ensure that buyers are getting the best possible return on their investment, and allows them to make data-driven decisions about their advertising campaigns.

Incorporating OTT ads into advertising campaigns can be a smart move for media companies looking to deliver more to media buyers: a wider audience, ads with more precise targeting, and better results overall. By taking advantage of the flexibility, precision targeting, and cost-effectiveness of OTT advertising, media companies can execute campaigns that resonate with their audience and deliver measurable results. And by partnering with Frequence, media companies can easily incorporate OTT into their offerings. Schedule a demo today to learn more.