Why Your Brand Should Be Capitalizing on CTV/OTT Advertising Today
— by: Summir Wilson
It’s been quite some time since we’ve heard the word “cable” and to millenials the thought of cable tv alone sounds a bit spooky. We’re currently in an era that is rapidly switching out cable for new television viewing formats such as OTT and its subset, CTV.
We don’t mean to be facetious when we say that cable is essentially a dead end for advertising. A 2019 study showed that there was a tremendous increase in the amount of people who cut or were planning to cut the cable cord – data revealed that in 2019, 53 million people got rid of cable television, while another 16.8 million were considering pulling the plug within the next three months.
Aside from the numbers, it is evident television has expanded outside of the cable box from the multitude of different streaming services growing in popularity. We have Hulu, Netflix, HBO, Amazon Video, and most recently, Disney+. If networks who already have established cable channels are making the switch to OTT applications, don’t you think your ads should follow?
Hint: The answer is ‘yes.’
So, What the Hell is OTT/CTV?.
Connected TV (CTV) is any type of TV that can connect to the internet and connect to content that is offered outside of cable. We colloquially know it as “Smart TV” and as of 2020, it would be hard to find a television that did not offer a CTV component – that’s how pervasive this technological advancement is.
Over-the-top (OTT) is essentially any streaming platform (Netflix, Hulu, Disney+) that provides content using internet. The name OTT came from how streaming devices used to have to go “over” the top of a cable box. For example, OTT could be used on multiple devices (computers, smartphones, tablets, video game consoles, USB connection devices) which could connect to your television.
The difference between CTV and OTT is slim. CTV is a subset of OTT where its content is only available through a TV set (Apple Tv, Roku, Firestick), while OTT platforms can be used across various devices and locations.
The success of CTV and OTT platforms can be greatly attributed to the usage by millenials, as they are the demographic most likely to cut the cord. However, studies show that a large number of households use CTV and OTT platforms in addition to cable because some streaming platforms like Netflix, Hulu, and Amazon Prime offer their own original shows and series.
Why Should Your Brand Place Ads On These Platforms:
1. Insanely Large Audience
In summation, the goal of digital advertising is to impactfully reach as many people as possible. Placing your ad on streaming platforms will help you do just that. A recent study of digital media trends by Deloitte reveals that U.S. households have three streaming video subscription services on average and 43% of all households have both cable tv and streaming subscriptions. There is no doubt the number will grow, and therefore, there should be no doubt in your company’s mind to serve ads on these platforms.
2. The Millennial Vote
The target customer we used to draw up of a man traditionally watching tv on his couch is dead – for the most part. Though that customer still exists, the millennial vote is key in winning more customers. Various sources show that approximately 65% of millennial households have CTV only. This matters to you and your company’s advertising because millennial are the largest consumer demographic with the most buying power. Your ads need to be seen by this demo.
3. Audience Segmentation
We avoid the “cross your fingers and hope my ad is viewed by the right people” mentality when serving ads to CTV/OTT platforms, which is a huge relief, time-saver, and money-saver. There’s so much specificity offered on streaming platforms. Just like websites centered around a specific demographic, some streaming platforms are dedicated to one particular interest (sports, Disney, classic movies). This allows you to pick and choose which platforms are best for your company.
4. Spot-On Targeting
CTV/OTT completely upgrades the way we target television viewers. With traditional tv, ads are serviced regionally or nationally to every single user watching the channel, which doesn’t really give us a good grasp of who’s viewing – it’s a shot in the dark. But with emerging streaming platforms, we are able to target our viewers to a T. Most streaming platforms require you to make a user profile, where you must answer a series of questions regarding your interests in shows or hobbies (Do you like crime? Reality? Documentaries? Pick 5 shows you already watch. Pick 5 shows you’d like to start watching. Etc.). With this key feature, advertisers can specifically target their audience and with data analytics, they can measure audience engagement, resulting in performance-based advertisement.
5. Well-Rounded Audience Data
Not only does advertising on OTT/CTV target your audience more precisely, but it gives you, the advertiser, a full look at who your customer is. You can now hone in on who your customer is, what their motivations are, and when is the best time to present your offer. Using linked technologies and real-time data analysis, you can now use OTT to find new leads and remarket previous leads based off of their online behavior, searching, and watching on a streaming service.
6. Higher ROI
Traditional cable advertising proves to be less efficient, less strategic, and less likely to bring in the engagement your company is shooting for. However, people viewing content on streaming services are more accepting of ads because the ads tend to be very brief and understandable inconveniences considering how low-cost streaming platforms can be. Viewers are more likely to engage and view your ad all the way through because ads served via streaming services are more relevant due to the their aforementioned targeting abilities. Therefore, there is a higher ROI in OTT/CTV compared to traditional tv viewing advertising models.
Now that we have seen how viewing television has changed, it’s time for the way we serve ads to evolve as well. With these new ways of watching television content, the generation who grew up on cable could sit back in their rockers and reprimand the new with musings of “back in my day…” OR they could get in on the fun and embrace a totally cool and wildly accessible television viewing experience that will guarantee a more suiting and engaged audience for your brand.
With all the potential that video ads have to offer for so little investment, it’s a prudent business decision to give them a try. At Innovate, we can help place your video ads in front of all the right people to maximize your brand awareness and your revenue. To discover more about what we can do for your business, get in touch with our team today. Contact us by clicking HERE