OTT Advertising: How Is It Helping Modern Business to Grow?

How OTT Advertising Is Helping Modern Business to Grow
Digital Marketing

OTT Advertising: How Is It Helping Modern Business to Grow?

Social media and mobility have permanently changed communication, resetting customer expectations and shaking up wireless carriers’ and other ecosystem participants’ business models. In the media and entertainment world, a similar trend is emerging. On-demand content is the new trend. On-demand Video content has become famous among the people, and the popularity of OTT platforms have reached to a next level. The number of individuals watching movies and episodes on OTT platforms increased significantly last year. OTT apps now have a massive user base of more than 300 million users.

We witnessed a growing acceptance of OTT platforms across the country during the COVID-19 crisis. As movie theatres closed, the film industry opted to release movies online and make fresh content available to people across the world. According to a recent Nielsen survey, videos streamed through OTT services such as Hulu, Netflix, HBO Max, Disney Plus, Peacock TV, and other video streaming platforms account for 25% of the total time consumers spend watching TV.

For the rest of the answers and to know the basics of OTT, let’s dive in to get the details.

What is an OTT?

The best answer to this question is probably given by the Video Advertising Bureau which goes like this:

Premium long-form video content that is streamed over the internet through an app or device onto a TV (or PC, tablet, or smartphone) without needing consumers to subscribe to a wired cable, telco, or satellite TV service.

There is a striking difference between OTT platforms and linear/traditional television, where customers may only watch TV shows as they are shown live or as they are time-shifted.

In its most basic form, over-the-top (OTT) advertising is the new way of advertisement. It’s less expensive than traditional advertising, with measurable metrics, and a return on investment.

Who Uses OTT?

Cord-cutters, also known as OTT users, appear in a range of ages. According to a survey, the majority of OTT audiences are between the ages of 18 and 49. Millennials (18-34) account for 56% of ad impressions, while Gen X accounts for 27%. (35-54).

It’s an age old myth that these streaming media appeal mainly to younger people since they provide content tailored to their preferences. Several polls and studies reveal that adults between the ages of 25 and 50 are the most devoted viewers of OTT platforms, spending almost 70 minutes each day consuming material on these platforms. These platforms readily attract individuals of all ages since they provide content in all regional languages and in numerous formats.

Businesses seek to reach out to this sort of highly desired audience. A greater median income translates to greater disposable money and, as a result, a larger inclination to purchase.

Read To Know More:

Why Are the OTT Platforms Ruling the Media and Entertainment Industry?

What is OTT Advertising?

The capacity of streaming businesses to bypass television providers is referred to as “over-the-top.” There are no broadcast schedules or regional restrictions for OTT services. Viewers have access to their content at any time of the day.

Considering people watch content on a variety of devices, OTT advertising must be structured to function on anything from a big screen TV to a laptop to a smartphone. Another distinction between OTT and traditional broadcast advertising is that with OTT advertising, you can generally reach a smaller but more focused audience, which is one of the main reasons that marketers are drawn to it.

Apart from the major OTT platforms, there are lots of smaller, more niche OTT channels out there as well. Infact, one can hire a dedicated application developer to develop a video streaming app, which means that digital marketers have nearly infinite options for advertising on platforms that will reach their target audience.

Difference Between OTT Advertising and Traditional Advertising

  • In traditional TV advertising, one needs to compete with other organizations for highly sought-after time slots that correlate to popular television shows. As OTT viewers may quickly fast-forward through advertisements, advertising only reaches individuals who watch a program live.
  • Television advertising goes out to whoever presses the TV power button. However, every impression you buy with programmatic OTT advertising is tailored to suitable audience groups. Your budget is laser-focused rather than casting a wide net.
  • OTT advertising allows being evaluated. We devote time and resources to tracking the effectiveness of each outreach so that we may constantly improve and enhance our future offerings. We track video completion rates, evaluate ad placement success across platforms, assess performance by device, and see how consumers interact with messages. We retrace our steps after a sale or an online engagement. We use behavioral insights and attribution tracking data to figure out what prompted the viewer to act, so we can recreate the most popular calls-to-action and touchpoints in future campaigns. This is impossible in traditional TV advertising.
  • OTT advertising is much more consumer-centric than traditional advertising. It’s deliberate when a person goes into their preferred streaming service to watch a movie. They’ve chosen to be amused and consume video at that time, and they’re more likely to watch an ad before the main event. The content of OTT advertisements is not skippable. Meaning, your business message will resonate with the viewing audience profiles you worked so hard to reach, satisfying user interests and wants, giving it a more personal experience than random television advertisements that may not touch on any element of a viewer’s lifestyle.

Tracking Your Ads With OTT

There are ways to link ad expenditure to increase in searches, followers, and website traffic while airing commercials on television. The data is less accurate, though, because you won’t know if a certain customer watched your advertisement or merely happened to search around the time it aired.

OTT, on the other hand, provides extensive tracking tools for your spending. As potential consumers are watching videos on trackable devices, it’s much easier to monitor how the user journey progresses from OTT ad to online search to retargeting to purchase.

If you’re not receiving the results you desire, consider making the following changes:

  • To see which ad works best, test many at once. Then continue to invest in the best performer.
  • Consider targeting a new audience to see if you can obtain a higher return on investment by taking a different strategy.
  • If the audience tends to leave after visiting your website or clicking a retargeting ad, revisit your user experience. Even if your OTT ad is doing well, other aspects of your plan may require adjustments.

For the best results, take digital marketing services from a good company and see the outcome they provide to you with their strategy.

Challenges of OTT

It’s not always the bed of roses that you walk on. As you invest in online advertising, be prepared to face the challenges as well. Let’s see what are the challenges of OTT Advertising:

  1. Adaptability: Ads must be designed to function on a number of platforms since potential consumers can watch content on large-screen, high-resolution smart TVs or on their phones.
  2. Length: As viewers may have the choice to “skip” commercials after 30 seconds or so of content, advertisements must be brief. Make sure you’re familiar with the market you’re targeting.
  3. Frequency of Advertisements: Too many advertisements may irritate viewers, producing the exact opposite impact you need. Make sure to limit the amount of times an ad appears in front of a certain audience.
  4. Bots: Working with a trustworthy partner that can filter out any false data from bot views and this is essential if you want to obtain an accurate picture of your ad’s effectiveness.

Best Practices of OTT Advertising

When you know the challenges, you should also be aware of the best practices of OTT advertising. So, here we go:

  • Keep them short: Unless you identify the brand and know the commercial will be interesting, you do not watch it very frequently. Many users on OTT skip commercials as soon as the “skip ad” button appears. As a result, keep your advertising brief. They should be under 30 seconds long.
  • Formatting needs a lot of attention: Your advertisement may seem great on a big screen, but how does it appear on a smartphone? Make sure your ad is compatible with a variety of platforms, including televisions, computers, tablets, and smartphones.
  • Make relevant ads: Online Advertisement should be current and relevant to your target audience. Before you dive in, spend some time getting to know your audience so you can develop a tailored experience that will establish trust and convert visitors into buyers.

Read To Know More:

Digital Transformation: Today and the Future

Benefits of OTT Advertising

Count on the benefits of OTT Advertising:

  1. Broad and diverse reach: OTT advertisements have the potential to reach a large number of people with similar interests. While TV commercials are still effective, you may target folks that aren’t watching them based on demographics and psychographics.
  2. Great targeting abilities: Data-driven advertisements are expected to provide a 5 to 8 times higher return on investment than less focused advertisements. You may employ highly targeted advertising that produces greater results when you employ OTT, whether your advertisements show in on-demand content or live broadcasting. For this capacity to optimize targeting, OTT advertisements may be considerably more successful than traditional TV ad campaigns.
  3. Powerful Analytics: Advertisers may use OTT advertising to get the data they need to track the effectiveness of their campaigns in real time. Based on your goals and targeting, you’ll be able to evaluate a variety of data. You can also A/B test all OTT advertisements to see which ones are working well and which ones may use some tweaking.
  4. Convenient user experience: People will see your linked advertising whenever they watch their favorite episodes, movies, or video clips at their leisure. You no longer need to rely on a dedicated audience to watch a live broadcast.
  5. Clickable CTAs: Remember that two out of every three consumers seek up information about a product they saw on TV, which includes OTT commercials. On non-connected devices or non-connected TVs, OTT advertisements frequently allow consumers to take action right from the ad.
  6. Cost-Effective: When it comes to price, OTT advertisements are quite flexible. You may buy OTT advertisements for a set price per thousand impressions (CPM). The CPM rate is usually determined by the reach or frequency of advertisements.


Many businesses of all sizes use OTT advertisements in unique and creative ways to reach their target audiences. To interact with your audience in relevant and customized ways, consider incorporating OTT advertising into your marketing plan. It can be best done when you hire a digital marketing service provider.

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