Capturing Digital Views: The Basics of OTT Advertising

Cable TV had its prime time.

Now, 78% of households have at least one type of streaming service in their homes. With the rise of internet streaming services, OTT, or over-the-top advertising, is an essential route for your advertising efforts.

Confused as to what OTT is or how to use it?

We’ve compiled the basics of OTT advertising below and explain why OTT is the ideal place to capture potential customers and even increase ad spend efficiency for your business. 

Video Streaming Is King

OTT displays ads within online video streaming services.

Simply put, they are identical to commercials placed on prime TV — just placed online. 

This is an ideal way to reach younger audiences that may not subscribe to traditional TV networks. OTT can also be engaged on a full partner channel, such as Hulu and YouTube. You can arrange to reach certain demographics of audiences with your streaming service partners.

However, if you choose to run more broad campaigns, you could also reach newer audiences that you didn’t previously realize may be interested in your brand.

Take ownership of the power of online video consumption with OTT advertising.

Over-The-Top Advertising Is Prevalent in Streaming

Okay, so we know that videos are king. But what about ad-supported networks?

Thankfully, about 73% of U.S. adults who usually watch streaming video services stated explicitly that they watch ad-supported OTT video.

This means that video streamers are viewing ads — potentially your ads! And better yet, they are aware of the ads being served to them and therefore more receptive.

Study respondents actually confirming that their video is ad-supported means that at least a handful of ads they have viewed have lasted in their memory. At the very least, serving your ads to these individuals can build your brand image.

With the careful implementation and analytics tracking, OTT ads can also boost your ad learning data and even push conversions today or further down the line.

We Pay Attention to OTT Advertising

What is OTT advertising’s worst nightmare?


Thankfully, 63% of OTT viewers who watched ad-supported content claimed that they didn’t mind seeing ads if they were not paying to use the video service.

So the likelihood of someone missing out on your video due to adblock is smaller than you might think.

Additionally, these 63% of OTT viewers is a larger percentage when compared to TV and SVOD viewers. Only 43% of TV viewers and 53% of SVOD viewers didn’t mind seeing such ads.

Never Pay for a Blocked Ad

So, say you catch the 33% of viewers who do mind your ad and even use adblock to disable your OTT advertising.

Good news — with OTT, you often pay on a CPM basis.

This means you pay the video streaming service per 1,000 impressions of your ad — not for simple ad implementation on their site. OTT can compete alongside any of these 7 inexpensive ad ideas when done correctly.

That being said, you can arrange contracts in which a streaming service shows only your ads for a set amount of time or recurring basis. This can be an ideal partnership on smaller or niche-audience channels or programs.

In this case, it’s important to have a trial basis or confidence in any reporting the platform gives you.

How many people are truly viewing your ads? Clicking on them? Converting?

Use this information to calculate what you’re actually paying in terms of CRM.

OTT Ads Are Served in a Controlled Environment

Okay, so we know that we view OTT ads and even pay attention to them.

But — we go to our video streaming services of choice to see and completely engage with different content. However, that can be a good thing for OTT advertisers, too.

Since your potential viewers will be going to a specific channel to watch their content, that means they are dedicated to viewing that content. Typically, they are even dedicated to viewing the content from start to finish.

So instead of closing their application or internet window, they are more inclined to sit through your non-skippable ad — even if it’s just to watch the original content they came here for.

More Targeted Advertising with OTT

A big flaw with traditional TV commercials is the inability to target audiences separately and efficiently.

While you may be targeting sports-viewers, you may be serving to anyone in the room with the one sports fan.

With OTT and your streaming service partner, you can learn more about your potential viewers and target accordingly.

Ever logged into a steaming service account and been asked, “Who is watching today?” This question does more than simply organize your favorite shows based on most recently watched.

It also suggests new shows to you based on your viewing history and most-watched genres. Similarly, this information can be a goldmine when it comes to OTT advertising.

When used correctly, you can serve your hair product ads on shows with a majority female audience, or your webinar to shows popular with entrepreneurs. Your ads are more likely to be seen by your chosen targeted audience since they are forced to log in to their personal profile when viewing content.

Streaming Advertising As the New Traditional Ad

When it comes down to video advertising, OTT is the new go-to, viable method for longevity.

Not only can OTT be a more inexpensive route for advertising, but it has proven to be more engaging than traditional TV ads.

OTT can also provide you with more targeting tools, allowing you to find and test new audiences more effectively. With options such as Hulu and YouTube and even other, more niche platforms, you have a plethora of partners to choose from.

Ready to jumpstart your business into video content and ads?

Create a YouTube channel for your business today and start incorporating video content both on your channel and in OTT ads across the web.checkArticle ApprovedWhat Is Programmatic Advertising and Why Should You Try It?

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