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Is It Time For Your Business to Explore OTT Advertising?

February 14, 2019

Over The Top (OTT) and Connected TV (CTV) devices are everywhere - and growing. Unlike a television that sits at home, streaming digital video content can be done anywhere, from any device. It is projected that 2019 will be the first year where the CTV user base will be larger than the pay-TV user base.

With the number of cord cutters increasing and paid cable tv subscribers decreasing year over year, could Connected TV and Over-the-Top advertising be the answer to the question; How do we target those customers bold enough to cut their cable subscriptions?

OTT vs. Connected TV: What’s the Difference?

OTT stands for Over-The-Top, which refers to video content that is served over the traditional closed television system. With OTT, video content is streamed through an internet connection without a cable or satellite TV subscription, like with Hulu. Connected TV, or CTV, simply refers to the device used to watch OTT content; CTV is just a TV connected to the internet, allowing it to stream OTT content through applications. Any TV can easily become a CTV with a streaming device or console, such as a Roku, AppleTV, PS4, or Xbox.

OTT

  • The content shown in the video. (What you are watching)

  • Top OTT channels- Hulu, Comcast, Netflix, Amazon Prime, HBO Now, Starz, Showtime, MLB.TV, Sling TV, DIRECTV Now 

CTV

  • The device used to watch the video content

  • Top CTV devices- Smart TV, Roku, PS4, Xbox

OTT VS Traditional TV

The biggest difference between OTT and traditional television is the way content is delivered to the end user;  For OTT, a telecommunications service provider delivers across an IP network. For television, content is delivered from a cable and broadcast system. Smart TVs are both televisions and Connected TV devices.

Unlike traditional TV providers, OTT providers stream content directly from the internet. Ad-supported OTT allows networks to run digital-style campaigns: this means different households can see different ads based on what audiences they belong to (their demographics, buying habits, and other factors). Another advantage of OTT is digital delivery, which allows for results that are more easily measured and tracked.

What does OTT Cost? (And Is OTT Cheaper than Regular Cable?)

OTT can be cheaper than television, depending on your audience targeting. If you keep the audience broad, your cost of impressions will be lower. OTT cost fluctuates based on the anticipated audience size, just like traditional TV. For example, If you want to target popular channel apps, like sports during the Super Bowl or CNN during elections, it will cost more. The biggest advantage of OTT is that you can be sure your marketing dollars are going towards your most valued and targeted viewers. By using the superior targeting capabilities of OTT, including geofencing and customer lists, you are spending your overall advertising budget in a more efficient way.  

Measurable Results & Targeting

Unlike traditional TV, with OTT, you get measurable results. You can measure the results of your Connected TV campaigns with both digital and traditional metrics, including the completion rate for videos. OTT provides the same value that TV delivers with TV-like impressions (15 or 30-second spots) but with significantly higher engagement. With CTV, you get the best of both worlds: the benefits of television, (like high production value video storytelling with large reach) combined with the unparalleled targeting abilities of digital.

In addition, the adoption of streaming services like Netflix, Hulu, and Amazon are huge in the US and continue to grow in other countries as well. It is estimated that by 2020 more than 75% of families will have TVs connected to the internet in the United States.

How do I get started on OTT advertising?

Getting started with OTT advertising is easy with Click Here Digital. We handle everything from start to finish, including everything on the purchasing and selling operations:

  • Fraud Detection

  • Trading Desk

  • Ad Network

  • Advertiser Ad Server

  • Bidder Service

  • Auction Service

  • Real-time bidding

  • Data management platform

  • Data broker

  • Ad networks

  • Publisher ad server

  • Publishers

  • Transparent Reporting

Adding OTT advertising to your existing digital services can be done in a way that complements, not competes with, your existing advertising on YouTube and Social Media. Pushing your message through OTT delivery reinforces consistency, adds another digital touchpoint, and completes an omnichannel strategy. Get in contact with one of our OTT/CTV experts at Click Here Digital to find out more.