While television and cable are both strong markets, it's evident that they've taken a hit over the last few years. One of the main catalysts? OTT ("over the top") content. OTT services have continued to grow in popularity, with millions of "cord-cutters" and "cord never's" turning to online-based providers for their news and entertainment needs.
While many companies are jumping onboard the "OTT bandwagon," many are making the mistake of treating OTT advertising as a linear extension of standard television. True, such an approach may grant these businesses access to a bigger audience with different demographics. However, it fails to take advantage of the rich marketing data and targeting capabilities that OTT platforms can provide.
Let's discuss the different OTT models today and why all OTT videos are not created equal. (Hint: data can make a huge difference.)
Not all OTT services fit into one business model. There are several types of streaming services on the market today, each with its unique attributes. Three common OTT models include:
Several benefits come from advertising on OTT channels. Here is just a brief sample of such benefits:
OTT services are more than a linear extension of TV advertising. However, working under that mindset can cause your company to lose out on the rich consumer data received from advertising on OTT platforms.
For example, imagine a credit union expands its advertising efforts into OTT. What if they transfer their TV ad creative over to the new medium? Would their target audience respond as favorably to an OTT commercial initially developed for television as they would to an ad specifically designed for the channel in question? While the company's reach would undoubtedly grow, they could be leaving a golden opportunity on the table if they ignore the unique attributes and capabilities of the OTT model.
In contrast, working with a media partner specializing in OTT advertising can be the "key" to unlocking the medium's full potential. A specialized agency that serves as a trustworthy partner for your brand can help you make the most of OTT-sourced data and grow your customer base accordingly.
Though relatively new to the marketing world, OTT services are already demonstrating their worth as advertising channels. It's no exaggeration to say that OTT content could very well be the future of viewing and listening - and advertisers must continue to adapt to this new reality to achieve sustainable success.
Done right, OTT advertising can help you to reach a targeted audience with more of your specific customers, allowing you to engage with them more effectively, and leverage data to target the right people, with the right message, at the right time. Of course, "doing OTT advertising right" is easier said than done. However, an experienced media partner can help you boost your marketing efforts in the OTT sector. They can create videos that reach the widest possible audience and make the greatest potential positive impact on your consumer base.