What is OTT?

OTT means exaggerated. Here because.

The actual term for a cable box is a cable box. Because when televisions were large, bulky devices and cable boxes were small, they were placed on top of the television.But even as screens went flat and set-top boxes moved to other locations, the term “set-top box” stuck around. Streaming content, on the other hand, does not require a set-top box as it is distributed over the Internet. Bypass or bypass decoder. Hence the term “over-the-top”.

What are the benefits of OTT advertising?

There are many reasons why advertisers resort to over-the-top advertising to effectively generate revenue.

1.Advertising-supported OTT services are on the rise

According to Cox Media, the growth rate of ad-supported streaming services in 2020 was almost twice the growth rate of ad-free streaming services. The pandemic has certainly contributed to this, but the trend continues.In fact, OTT streaming has increased by 115% in 2021 compared to previous years. As a result, many media providers are recognizing the need to start streaming content or develop an ad-supported version of their service.

2.Consumers prefer streaming with advertising.

But consumers don’t like advertising. Why are ad-supported streaming services on the rise?Well, consumers are turning to streaming content to watch videos on demand. After all, this is possible these days with cable/satellite television. It also saves money. So it makes sense that these “cord cutters,” as they are called, would prefer to watch some ads if they meant free (or cheaper) content. And that’s how it was before the pandemic.A Deloitte study found that 62% of consumers prefer cheaper (or free) ad-supported services over more expensive ad-free services.

3.Better Targeting

With traditional cable advertising, the only way to reach your target is to select a specific market area (DMA). These are large regions (there are only 210 in the entire United States)., which means you’ll inevitably end up in places you don’t need (or want). OTT ads allow you to target: Zip codes (similar to PPC geo-targeting)
Devices
Demographics
Behaviors

4.OTT ads work without third-party cookies

It’s not just streaming content, which are becoming increasingly popular, but also provides cookies. free targeting features. Here’s how: First, there is contextual advertising, which does not require cookies because you target categories of TV/video content rather than individuals.
Second, streaming subscription services collect sufficient amounts of first-party user data (post-registration and post-login activity) to enable effective targeting.So you use your data without having access to it. Third, there are still ways to report OTT advertising performance using IP addresses and timestamps.

5.OTT video ads have a higher completion rate.

viewers can’t skip OTT ads, install ad blockers, or change channels (they’re only on one), so the chances of seeing your ad in its entirety are much higher. Yes, they could leave the room, but for consumers browsing on mobile devices (e.g. on the train or in the car), that’s not an option.You may be worried that your audience won’t enjoy it, but remember that they prefer content with ads because they get it for free. In other words, they know what they signed up for.

6.Save Money

With OTT ad targeting capabilities, higher fill rates, and measurement and optimization features, these types of video ads offer numerous opportunities to make the most of your budget and maximize the return on your advertising investments.

In addition, it is another element that you can add to your multichannel marketing strategy. Multi-channel marketing helps increase brand awareness, and the more channels you use to improve the performance of each one, the more effective your overall paid media strategy will be.