The viewership of OTT media platforms continues to grow each year. OTT viewership data shows that Netflix and YouTube garner more than 3.5 million hours of viewing each month. However, you don't have to be a big corporation to take advantage of the success OTT advertising can offer.
Once you know the basics of OTT, it's easy to implement it into your small business's marketing strategies.
OTT Advertising Basics
An OTT (or "over the top") platform is a streaming service that customers can purchase over the internet. Its content can be played on any mobile device or computer through services like Hulu and YouTube. It's not like regular television, but users still have access to hundreds of movies and television shows via apps.
OTT has become increasingly popular among cord-cutters, especially in the millennial age range. However, one OTT subscribers report shows that the older generation is slowly warming up to the idea of OTT. With viewership likely to increase across multiple demographics, it's a great method to reach your target audience.
CTV (connected TV) allows cable television customers to make an easy transition into OTT services. A CTV refers to a smart device that can play OTT content, such as FireTV or Apple TV. CTV viewership is also on the rise, with 80% of TV homes owning at least one CTV-enabled device.
FEP (full episode player) encompasses both to mean streaming content that can be played on both mobile devices and CTVs. It is often 30–60-minute programs accessible through an app from a television channel, like TLC or AMC. These programs often have multiple, unskippable ad spots that will be seen by millions of viewers.
Allows You to Reach an Engaged Audience
Advertising your small business on television can still yield success, but not if your target audience doesn't see it. With OTT platforms, you can use concrete analytics to see who is watching certain programs at all times of the day. This will allow you to run your ads at the best times to reach your target.
Cable providers also usually allow viewers to skip over commercials if the content was recorded from live television. Mobile adblocking is up by 64%, meaning users on a computer or mobile advice can skip your ads altogether. Fortunately, many viewers choose to watch OTT services on CTVs, which can't run adblocking software.
OTT platforms also tend to attract more diverse audiences. Having multiple streaming services is sometimes cheaper for certain customers than getting a full cable subscription. Additionally, viewers might seek out OTT for programs that aren't available in their region.
Studies show that programming offered exclusively on OTT offers more representation for marginalized groups. In 2020, over one-third of cable programming didn't show POC and LGBTQ+ actors in prominent roles. When customers feel valued by a streaming company, they are more likely to support small businesses that advertise on its platform.
Ads Can be Better Integrated
With the variety of OTT platforms available, it's not difficult to implement multi-platform marketing campaigns. Customers that use video streaming services may also utilize audio content platforms like Spotify or Apple Podcasts. Customers often need to make multiple touchpoints before they make a purchase, which includes seeing different types of advertisements.
Even if a customer is streaming OTT content as background noise, their ears will still tune in to relevant advertising. This is why it's crucial that your ad includes a clear CTA with a store's location or online landing page. A website is even better since it takes little effort for customers to visit on a mobile device.
Having ads on multiple platforms also increases brand awareness and recall among your target audience. Better still, ad revenue from OTT advertising campaigns is expected to reach $159 billion by 2024. Purchasing advertising spots on OTT platforms is also typically cheaper compared to getting them on cable.
OTT Analytics Provide Customer Insight
Unlike television ads, OTT ads gather analytics about your customers' time watching the platform, their interests, and their purchasing habits. Using those, you can effectively create personalized messages that will resonate with your target audience. You'll also be able to see your ads that get the most engagement, versus ones that don't.
Customers can grow bored with generic or repetitive advertising. Using data analytics, you can pull an underperforming ad and refocus your efforts on creating different content. You can also change your advertising content to keep up with your target's evolving needs and your advertising goals.
Developing OTT Ads for Small Business Marketing Strategies
Successful advertising is particularly important for a company without a large pool of existing customers. With so many OTT services and numerous targeting opportunities, it's a growing medium that can expand your small business. A media partner experienced in OTT advertising can offer valuable insight on where to place your ads for maximum engagement.