• What is OTT Advertising and How Does It Work?

    On: November 1, 2019
    In: News
    Views: 1374

    What Is It?

    The way we consume television has changed drastically.  Instead of waiting for our favorite show to air, we are becoming more in control of what we want to watch and when we want to watch it.  OTT which stands for Over the Top is referring to any device or service that is used to stream digital content to a television.  If you own a Roku, Smart TV, Amazon Fire stick, etc.  then you are already part of this new wave of television viewing.   Pew Research Center showed over 61% of Americans are viewing content through a streaming device and that number is expected to grow annually.

    OTT advertising is a means to deliver television commercials through streaming media on an OTT platform.  It has the advantage of TV advertising showcasing a product through sight, sound and motion with the digital advantage of being highly targeted.

    People who are watching media via OTT devices can’t skip the ads or jump to another browser which means the video completion rates are over 90%.   Think of OTT as an awareness medium since viewers are unable to click on your ad.

    How Does it Work?

    An audience is created on the platform’s subscription data such as Video Ad Serving Template or Video Player Ad Interface Definition.  These platforms match the audience demographics and psychographics to the specific TV’s subscriber lists as well as other devices in the household that show browsing and online shopping data. This data is used to determine where the best place is for the ad to be shown.  The OTT operator then can generate reports for the advertiser to show how many times their full ad has aired and where.

    The advantage to the advertiser is the ability to target their ideal customer with little waste.  Viewers of OTT benefit because the ads they see will better match their personal interests.

    OTT capabilities will continue to develop resulting in an increasing share in the advertising world. It is poised to become one of the most lucrative opportunities for advertisers.

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