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3 Trends to Consider Before You Make Your 2021 OTT Digital Advertising Strategy

ott digital advertising
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  • Advertising, Latest Blogs
  • December 8, 2020

Table of Contents

  • Trend 1: Placing ads on video-on-demand is once again back on track
  • Trend 2: People once again prefer using TV as a platform for watching 
  • Trend 3: Media companies are prioritizing streaming services
  • Conclusion

Despite the crisis the world is experiencing now, there is no denying that online platforms are continuously booming. In 2025, the over-the-top or OTT Digital advertising market is expected to reach 194 billion in value. In the United States alone, around 182 million people, or 64 percent of internet users, have at least one OTT subscription. 

Besides its ease of setup and use, a user only needs an internet connection and a compatible device to make their OTT service work. The cost is also relatively low compared to traditional counterparts while providing much more content to audiences. All these perks make OTT digital advertising a favorite platform among customers. 

If you are a brand capitalizing on this platform and thinking of plans for the coming year, here are the latest trends that are you should learn before you make your OTT digital advertising strategy:

ott digital advertising

Trend 1: Placing ads on video-on-demand is once again back on track

The service may have experienced a struggle in recent years, but it definitely bounced back the latter part of the year. According to research by the tech company, Unruly, people nowadays are leaning towards saving more money, so they prefer watching free (i.e., ad-supported) programs. The lockdown has also encouraged them to find more content to watch.

Take this opportunity to capture these new audiences. They are beginning to get used to seeing more ads as part of the watching experience. In terms of suggested platforms, Peacock and Hulu have experienced great success from their ad-supported business models.

Trend 2: People once again prefer using TV as a platform for watching

CTV (Connected TV) advertising is on the rise. According to a report from IAB, more than half of OTT/CTV viewership takes place on televisions, which is a significant increase compared to last year. There was an observed increase in the market that has led to a 19-percent growth in CTV advertising, while its linear TV counterpart declined to -24 percent. The report also states that 75 percent of consumers watching OTT digital advertising are on ad-supported platforms, providing marketers the chance to gain incremental reach with an already-engaged audience.   

Moreover, subscription platforms, such as Netflix and Amazon Prime, are expected to double revenues in the next five years. Capitalize on their success and learn how to utilize them for your business. 

Trend 3: Media companies are prioritizing streaming services

The limitations set by the pandemic encouraged media giants, like Disney, to invest more in their streaming applications. For example, Disney’s decision to release the film Mulan on Disney+ increased their subscribers by 68 percent, which has encouraged similar companies to follow suit.

However, this trend does not only apply to giant media companies. Other businesses can also benefit from prioritizing streaming services to increase their market share and attract more customers.

Conclusion

Global spending for OTT digital advertising continues to grow despite the pandemic. All these trends lead to more platforms and opportunities that await advertisers. If you want to grow your OTT business, make sure to find the best platforms where your audience is at. Take advantage of the chance and invest in your video ads wisely.

Do you need help in OTT digital advertising? Allow us to assist you. At EIC Agency, we base our strategies on analytics. We make sure we understand your customers’ pain points, and we find the best ways to address them. Contact us to learn how we can help. 

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