People’s viewing preferences have changed drastically over the past few decades. Back in the day, cable TV was our primary source of entertainment. We had to memorize the schedules of our favorite shows because they were on only at certain times. But now, OTT is dominating the entertainment industry. Thanks to YouTube, Netflix, and other OTT platforms, we can stream content wherever and whenever we want.
Given the switch from cable TV to OTT, it makes sense for marketers to take advantage of streaming platforms. However, OTT advertising is relatively new compared to other marketing strategies and may not be for everyone. If you need help deciding whether to dive into it, here are the pros and cons of OTT advertising.
What Is OTT Advertising?
OTT stands for over-the-top. It refers to platforms that provide streaming content via the internet to various devices like smart TVs, mobile phones, and computers. Some of the most well-known OTT providers include Netflix, YouTube, Amazon Prime, Disney+, and HBO Max. OTT advertising utilizes these streaming platforms to expose their ads to highly engaged viewers. With OTT, marketers can broaden their reach without being limited to linear TV.
The Pros and Cons of OTT Advertising
Given current trends, it’s likely that OTT advertising will become essential to businesses’ game plans. But like any marketing strategy, check if OTT advertising aligns with your marketing objectives before investing in it. Studying its pros and cons can help you decide:
Pro #1: Targeted Advertising
TV advertising was the premium option for decades, reigning over print media and radio. However, OTT advertising proves to be even more effective than TV commercials because of advanced targeting options. It allows you to expose your ads to specific groups of people based on various criteria. You can use demographics, location, web browsing history, and viewing preferences. That means you can target highly interested audiences who are more likely to convert.
Pro #2: Growing Audience
The term “cord-cutting” has been popular with homeowners over the past few years, as they’ve been dropping their cable subscriptions. That means more people are switching to OTT, which is good news for advertisers.
As more users subscribe to streaming platforms, marketers can expose their ads to more viewers without overstepping their budgets. And because streaming providers can show different ads to viewers watching the same show, the cost of advertising drops even more. OTT advertising requires less money than getting commercials onto cable networks.
Pro #3: Non-Skippable Options
Marketers dedicate their workdays to crafting the perfect ads for their target audiences. So it’s disheartening when people skip over them two seconds in. Fortunately, many OTT providers offer the option of non-skippable ads. Like watching TV commercials, you have to view the ad from start to finish before you can view your selected video or movie. That allows you to tell the whole story of your products or services to people who can benefit from them.
Con #1: Different Requirements per OTT Platform
Running a marketing campaign on multiple OTT platforms entails lots of preparation because each provider has its own requirements. They have different rules on video or graphic size, restrictions, and targeting. It can be overwhelming if you’re working with a lean team.
Con #2: Limited Ad Formats
A huge benefit of social media ads is that they can direct users to specific landing pages through click-through links. While YouTube has some click-through capabilities, not many other OTT platforms do. That can be a disadvantage if your marketing goal is to increase conversion.
Con #3: Limited Reporting
ROI is a top priority for marketers because they invest money into their campaigns. While social media platforms offer all the metrics you need to assess the success of your efforts, OTT providers have more limited reporting capabilities.
Reach New Audiences With OTT Advertising
OTT advertising is worth exploring if your ultimate marketing goal is to expose your brand to as many people as possible while minimizing costs. Given the growth of streaming platforms, including OTT advertising in your marketing strategy can prove lucrative. For more information, contact Transformation Marketing at 402-788-2896.