OTT Advertising in Your Brand's Strategy
OTT, or over-the-top advertising, represents the next major marketing frontier for your brand. With OTT advertising, you can stream ads directly to your intended audience on their smart TV, device, or subscription service, such as Netflix. Adding over-the-top spots to your strategy can increase the return on your company's ad dollars by precisely and efficiently targeting your intended audience.
Why advertisers choose OTT
Investing in over-the-top ads gives brands a chance to leap over the red tape associated with major media and television advertising spots—hence the name.). OTT also allows your brand to gain instant access to streaming service viewers with flexibility and autonomy. When going through traditional networks and advertising firms, this is rarely possible.
Many platforms, including Amazon Fire TV, turn off the user's ability to forward through or skip OTT streaming ads. This is another attractive caveat to over-the-top ads because it encourages complete views and strong ad performance. Finally, we’ve seen first-hand how OTT can be a game-changer for brands, retailers, and manufacturers alike. For example, in a 2019 case study, our colleagues at Marketplace Strategy (MPS)demonstrated the ability of over-the-top ads to reach second-screen viewers. These individuals use a smartphone or laptop while streaming shows and movies and often display intent to make a purchase immediately after an OTT ad. About 65% of double-screen streamers research the product or service on the second device in real-time, instantly connecting with your brand and quickly moving through the marketing funnel to transform from a prospect to a client.
The MPS commerce partnership, which focused on a line of coffee makers from a major housewares brand, resulted in a significantly increased return on ad spending of 43%. During the two-month engagement, the brand increased sales in the new-to-brand customer category by an impressive 84%.
Challenges when implementing OTT ads
Each OTT advertising platform has a distinct business model and procedure for brand partners who invest in these spots. The list below shows just a few of the countless services you'll need to investigate to find those that best meet your objectives.
- Amazon Fire Advertising
- Amazon Prime Video
- Twitch Advertising
- Apple TV+
- Disney Plus
- Hulu OTT Ads
If you don’t have the expertise or the time to build a knowledge base about over-the-top options, you can conquer this challenge with the help of a seasoned strategic partner.
The future of over the top ads
Over-the-top ads allow brands to connect with both young and middle-aged viewers, who tend to rely on streaming services for entertainment rather than traditional cable, as well as many baby boomers and seniors. According to an August 2020 report from Statista, 62% of adults who live in the U.S. subscribe to at least one streaming service, including:
- 70% of the 18-to-34-year-old demographic
- 72% of the 35-to-44 demographic
- 58% of the 45-to-64 demographic
- 49% of those ages 65 and older
In 2019, 46% of these individuals spent $10 to $20 per month on streaming media subscriptions.
These ads also provide unique opportunities for grocery and consumer packaged goods firms with location data that can pinpoint the impact of ads on in-store sales. As Americans increasingly return to brick-and-mortar stores, brands in these sectors should consider incorporating an OTT strategy to better evaluate the efficacy of marketing campaigns.
Right now, OTT ads might seem like an optional addition to your brand's marketing strategy. But as cable viewership declines and streaming services continue to proliferate, these platforms will likely eclipse or even completely replace traditional TV advertising.
Over-the-top ads have the power to connect with your customers and prospects throughout every phase of the marketing funnel. We can partner with your brand to incorporate a smart OTT strategy that makes sense for your needs, budget, and campaign objectives.
Code 3 and MPS have helped clients in various sectors with a range of marketing goals succeed with OTT. With the right strategic partner, your brand can make the most of this lucrative opportunity. Reach out to Code 3 today for an evaluation and ask all your questions about making over-the-top ads work for your firm.
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