OTT & STREAMING TV
Nearly 20% of all U.S. households have cut the cord, eliminating 25 million households that were reached with cable and broadcast advertising. In 2020, OTT (Over the Top) is expected to surpass 200 million users, reaching more than 70% of all Americans each month.
The rise of OTT is due to the lower cost compared to cable, ever-increasing streaming services offered, and the vast content available through streaming services. OTT provides advertisers with the capability of communicating with highly targeted audiences and individuals unreachable by broadcast and cable. In practice, OTT is another digital channel since buying it is managed in the digital ecosystem.
OTT (Over-the-Top) Streaming is any media streamed over the internet and shown on a television. Devices and streaming services are the 2 primary components of OTT that work hand-in-hand, as people watch streaming services through these devices.
OTT (Over-the-Top) Devices are any internet-connected devices that are capable of streaming, including set-top boxes like Apple TV, Chromecast, or Roku, Blu-Ray players, or gaming consoles like X-Box and PlayStation.
CTV (Connected TV) is any television that is connected to the Internet.
It is important to note that some OTT platforms such as Netflix do not run ads, but many do.
WHERE THE ADS RUN
OTT ads run on Live streaming, VOD (video-on-demand), and on premium content.
As with traditional television, OTT inventory is primarily 30-second videos with some 15-second inventory available. One of the best features of OTT ads? They approach near 100% viewability and 95% completion rates compared to lower rates on other digital platforms.
BUYING OTT WITH MAJORITY STRATEGIES
Through Majority Strategies’ programmatic solution, we already incorporate OTT devices into our ad buying. Our location-based device capture within our DMP (Data Management Platform) allows us to collect all of the devices associated with specific households to run ads to those OTT/CTV devices. This solution is audience-based, which means we run ads on hundreds of OTT placements, following your audience wherever they go.
BUYING ADDITIONAL OTT INVENTORY
In addition to Majority Strategies’ programmatic solution, advertisers can buy OTT inventory directly with specific publishers or streaming services. The benefit of this approach is that it is contextual, for when you want ads on certain programs and platforms. However, the downside is that these platforms have targeting constraints that our programmatic solution does not have.
TARGETING ON 3RD PARTY OTT SERVICES
PUTTING IT ALL TOGETHER
The growth of OTT is exciting because it is one more platform where marketers can reach audiences with digital ads.
On your next campaign, consider adding OTT to your advertising mix. Contact your Majority Strategies representative to learn more.