The era of linear TV is behind us. OTT platforms have exploded in the worldwide market. Netflix, starting as a DVD-by-mail rental service, was among the first OTT platforms in the early 2000s, and ruled the roost for quite some time. It was soon followed by other big players, like Hulu and Amazon Prime, entering the OTT market, which then opened the floodgates for this new way of video content consumption. This had a significant impact on the advertising business as well. Today, advertisers, media agencies, and brands are making a significant shift in their advertising budgets. As per recent reports, they have stepped up investment in the OTT platform as they are eyeing big profits in terms of ROI in the future.
OTT Advertising: Meaning
To give you a cohesive story: When a viewer goes to a streaming platform to watch a movie, show, or video content, certain ads are delivered to them at the beginning, middle, or end of the video. These ads that are showcased via streaming platforms are called OTT advertising. Advertisers leverage the best advertising platforms for OTT advertising that has a wide audience reach. According to reports, the OTT advertising spend to reach $3.5 billion by 2026.
The Importance of OTT Advertising and the Buzz around It
OTT advertising has taken the ad-serving market by storm. It claims the position of the fastest-growing advertisement segment, It mean inviting major chunk of money will be spent in this segment. There are a number of reasons why OTT ads are on the rise. Here are some of the significant reasons that you should know:
Counters the Loopholes of Linear Advertising
Be it geographic limitations or the pressure of pre-scheduled ads, linear advertising had a lot of issues that advertisers were managing due to a lack of options to reach their target audience. Today, the reality has changed. The modern approach to reaching potential customers has made it easy for advertisers to run their ad campaigns on relevant platforms like OTT. They are not only getting higher audience engagement but also a better ad completion ratio, which is an important parameter to measure the success of any ad run on best ott advertising platforms.
Precise Audience Targeting
No one wants to waste their advertising budget on inefficient ad targeting. Earlier, the ads are show to a large audience, some time small number of are interest in the brand’s products. Today, with precise audience targeting through organized data, advertisers are in a better position to use their budget efficiently. Every penny is invest on the right audience to get a higher conversion rate.
Huge Audience Reach
With OTT advertising, you have the power to reach an untapped market. Over-the-top content is not for only existing viewers consume, it but it also engages a pool of new viewers who were not watching content on linear TV. This means you have the chance to grow your audience beyond measure.
Best Practices in OTT Advertising
- Interactive ad experience
- Measure campaign performance
- Universally delivered ads
- Dynamic capabilities for a personalized experience
It is surely an exciting time for advertisers. Nowadays, some ad-building platforms have made the task of OTT ad creation, optimization, and management very easy. Advertisers can get dynamic overlays, ad tags compliant with programmatic platforms, rich media elements. Real-time reporting on these portals that help them in every step of their ad campaigns.