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What is OTT Advertising?
Streaming has revolutionized television. As cord-cutting households switch from cable to on-demand streaming services, a massive viewing audience has migrated online. For advertisers, this presents an opportunity to follow audiences to where they are now viewing content.
Over-the-top (OTT) video advertising allows brands to engage streaming viewers on their preferred devices and platforms. In this blog post, we’ll explore what OTT advertising entails and how brands can leverage it to effectively reach today’s streaming TV viewers.
Defining Connected TV vs Over The Top Advertising
Over-the-top (OTT) and connected TV (CTV) advertising are closely related but distinct terms. OTT refers to any video content delivered online, accessible on any internet-connected device. CTV specifically refers to video content viewed through internet-connected televisions and streaming devices like Roku and Apple TV. While OTT covers the full range of platforms, CTV is a subset focused on the television viewing experience.
What are OTT Ads?
Over-the-top (OTT) advertising refers to advertising on video streaming platforms like Reveel, Netflix, Hulu, and Disney+. It allows brands to reach cord-cutting audiences who are shifting from traditional TV to streaming video. OTT provides more targeted and measurable ads compared to traditional TV.
What is CTV Advertising?
Connected TV (CTV) advertising is a type of OTT advertising that specifically targets audiences through their smart TVs or devices like Youtube TV, gaming consoles, Roku, Apple TV, or an internet device connected to a TV. While OTT is a broader term encompassing mobile devices and desktop as well, CTV focuses just on the TV viewing experience.
NEXT: How To Advertise on Streaming Services
AVOD vs SVOD vs TVOD vs PVOD
There are a few different OTT/CTV content and monetization models:
- Advertising-Based Video on Demand (AVOD): Ad-based video on demand involves discounted or free content monetized by ads. Examples are YouTube, Tubi, Pluto TV.
- Subscription-Based Video on Demand (SVOD): Subscription video on demand requires viewers to pay a subscription for access. Examples are Netflix, Amazon Prime Video, HBO Max.
- Transactional Video on Demand (TVOD): Transactional video on demand allows you to pay per piece of content. Examples are iTunes, Google Play Movies.
- Premium Video on Demand (PVOD): Premium video on demand offers early home access to new theatrical releases for a premium price. Examples Prime Video, Disney+
Types of OTT Video Ads
OTT platforms offer a variety of ad formats for brands. Streaming viewers tend to watch with greater intentionality than passive TV audiences. This engaged mindset creates opportunities for effective brand messaging through OTT advertising. The attentive mindset of viewers makes streaming an excellent environment for brand awareness and engagement.
1. Pre-roll Video Ads: These ads play before the video content starts.
2. Mid-roll Video Ads: Mid-roll ads play in the middle of video content.
3. Post-roll Video Ads: Post-roll ads play after the video content ends.
Benefits of OTT Advertising
1. Meet Audiences Where They Are Watching
Streaming has officially overtaken cable as the dominant TV viewing method in American households. Driven by the convenience and affordability of on-demand streaming, audiences have rapidly migrated from traditional cable packages.
This massive viewership shift presents a major opportunity for advertisers. To effectively engage modern audiences, brands need to follow consumers to where they are actually watching – streaming platforms.
2. Targeted Digital Ad Capabilities
A key advantage of OTT platforms is their ability to leverage user data for superior ad targeting compared to traditional TV. While linear television provides limited audience data, OTT platforms can pinpoint specific viewer demographics, interests, behaviors, and more.
This enables advertisers to serve highly personalized and relevant ads matched to their ideal audience profiles. OTT provides in-depth performance analytics as well, to optimize campaigns in real-time. The data-driven targeting capabilities of over-the-top video present tremendous potential for effective and efficient ad spend.
3. Various Types of Ad Formats
OTT platforms offer a diverse range of ad formats for brands. In-stream video ads can be served before, during or after streaming content as pre-roll, mid-roll and post-roll units. Overlay ads appear as pop-ups or banners over the video screen when a user pauses a video.
This variety of ad types provides flexibility for brands to develop data-driven OTT campaigns tailored to their goals. The right mix of video, display and interactive OTT ads can drive brand awareness, consideration and conversions across multiple devices.
Engaging Audiences Through Streaming Video Advertising Platforms
OTT and CTV represent the future of TV advertising in the streaming era. As audiences continue to shift viewing from cable to on-demand platforms, brands have an opportunity to evolve as well. OTT advertising provides better audience targeting, increased engagement, and measurable analytics compared to traditional TV advertising. With the ability to serve ads on any device, OTT opens up broader demographic reach too.