What is OTT Advertising? The Potential Impact on Marketers and Consumers

what is ott advertising

What is OTT Advertising?

Short answer: Over-the-top. Subscribers to OTT providers such as Hulu, receive streamed content through the internet, which can be viewed through a Connected TV (CTV) or other devices with access to the internet. It’s an alternative compromise for people who want to experience modern viewing without the restrictions of cable subscriptions. This adjustment in consumer behavior is a ripe market for marketers who know how to relegate their efforts.

Table of Contents

Modern consumer behavior is changing in many ways, from the way they procure services to how they digest media. If you are wondering “What is OTT advertising?” it is time to get familiar. The staple of American homes containing a large TV screen is no longer the main method of consuming media from brands and service providers. Nowadays, people are receiving media through smaller screens, partly due to the accessibility of mobile network connections and the development of more high-end mobile devices. This makes Over-the-top (OTT) video streaming the new frontier for advertising.

In this article, we’ll share three reasons you should be keeping an eye out for OTT advertising:

1. OTT video streaming complements modern viewing habits

OTT content goes through an internet connection, unlike a traditional cable provider by going over a cable box to provide access to TV content. It’s a viable way for users to watch exclusive shows without paying for a cable television subscription. Although its operations are in a different format, providers like Sling TV and Roku Channel bypass traditional distribution while earning revenue through subscriptions and OTT advertising. Marketing through OTT is an excellent way to connect with modern audiences, especially as consumer trends in media consumption are shifting.

2. OTT advertising has high ROI

It’s not uncommon for consumers to have a negative connotation on sponsored ads, primarily if it interrupts their viewing experience. However, this all depends on the timing and delivery of the medium. OTT viewers aren’t aversive to seeing advertising if the pay-off is access to free content. This means they’re willing to view media they prefer to watch without having negative experiences watching your ad.

According to a recent finding from an IAB study, affluent audiences are generally open to watch OTT video streaming. It’s a ripe market that’s willing to watch ass-supported content regularly, making OTT platforms a potential breakthrough for a high ROI marketing channel.

what is ott advertising

3. OTT advertising taps a wide market

A common misconception about OTT advertising is that it can only attract the Millennial demographic. Although it’s true that the streaming wars cater to a particular age group, that doesn’t mean that it’s inaccessible to different age ranges. There’s a rising trend of cord-cutter audiences who are putting behind cable subscriptions in lieu of more accessible media consumption methods like OTT video streaming.

Contrary to popular belief, Gen Z and Gen X target demographics aren’t the only generations that are open to embracing the shift to OTT platforms. Thanks to the accessibility of OTT technology, consumers don’t have to be tech geniuses to adapt it to their homes. Many digital advertisers are looking to extend their audience reach through OTT as a valuable entry point in the TV and video advertising landscape.

Conclusion

Hopefully after reading this you are still not wondering “What is ott advertising?” Real estate has been a crucial component of advertising, whether it’s in the traditional sense or in digital spaces. Traditional billboards and sponsored ad placements are equally dependent on prime location that will provide the most traffic for viewership. OTT advertising is a new and fresh property for advertisers to explore and add as one of their marketing channels.

EIC Agency is an Arizona-based internet marketing company that gives businesses a competitive edge online. We provide content distribution, content management, OTT advertising, and more! Get a free consultation from our marketing experts today!

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