Top 3 Questions Every Marketer Should Ask When Considering OTT

Top 3 Questions Every Marketer Should Ask When Considering OTT

Digital media streaming services have made it easier than ever for people to cut the cord on pay-tv and use over-the-top, or OTT, devices to deliver all their entertainment needs. In fact, more than 33 million adults have cancelled traditional pay-TV. And as traditional TV audiences shrink, the number of people streaming media through OTT services continues to grow. As a marketer, it’s worthwhile to pay attention to this shift in customer behavior.

As reported by Adweek, studies predict that OTT ad revenues will climb from 45 to 60% in the next ten years, as more marketers adopt this advertising approach. If you want to be one of the first to take advantage of this growing – and profitable – marketing avenue, now is the time to refocus your efforts. As you consider integrating OTT into your marketing program, use the following questions to determine if it’s a good fit for your business.

1. How Does OTT Advertising Work?

With this question, you can assess if OTT advertising can support your overarching marketing goals, such as increasing annual revenues and building brand loyalty. With this type of advertising, video ads are delivered through the interfaces used for over-the-top devices of all kinds, including streaming boxes, HDMI sticks, game consoles and smart TV.

These devices allow viewers to watch movies, TV shows and other digital content by streaming the data to their TV, phone or computer. There are also various ways to display the ads, including within the content as commercial spots or as banner ads on the home screen. Each platform runs their ads in different ways, offering a diverse range of OTT marketing opportunities for businesses.

2. How is it Different From TV Advertising?

Since OTT advertising is a relatively new avenue for marketers, this question can help you understand why you may want to change your marketing approach from pay-TV to OTT. In this new era of digital streaming, pay-tv ads miss major consumer groups who are not regularly engaging in cable or local television programming. These people are using OTT devices and streaming services instead to handpick their programming without paying high subscription fees.

Studies show that people using OTT devices for their entertainment needs are open to watching ads in exchange for streaming free content. Compare this receptivity to viewers’ tendency to switch channels during traditional TV ads, and you can start to see the appeal of OTT advertising for marketers.

3. What are the Benefits of OTT Advertising?

This question allows you to explore the value of OTT and determine if it can offer a great return on investment (ROI) for your marketing program. OTT advertising allows you to precisely deliver ads to your target audience using data like geolocation, device information and demographic data.

With a growing, engaged audience and advanced targeting capabilities, OTT can lead to improved engagement and results for your business. And combining it with radio – another high reach channel with exceptional targeting abilities – can boost your reach and frequency to help your business grow and achieve marketing success.

Determine if OTT Can Support Your Marketing Goals

Although there are immense opportunities for success with OTT advertising for marketers, you must consider the three questions above to determine if this approach is right for your business. With a bit of reflection on the current and future goals of your marketing program, you can decide if OTT is worth the investment. If you would like to pursue OTT for your business, contact a trusted media partner like Hubbard Chicago to learn more and get started.

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