In the last 5 years, cable companies have seen millions of people canceling cable and satellite services. According to MediaPlayNews, 27% of U.S. households cut their cable cords in 2021, following the 15% of households who cut the cord in 2020.
In a report done by the Video Advertising Bureau (VAB), 71% of internet users use an Over-the-top (OTT) service at least once a month, and 11% use OTT devices exclusively. On top of that, an additional 88.7 million households in the United States are using connected TVs.
This shift has benefited the consumer and has also opened the door for companies looking to find new and more specific audiences online.
What is OTT?
OTT (over-the-top) devices include things like Roku, Apple TV, Amazon Fire Stick, smartphone, and tablet streaming. OTT may also be defined strictly on the basis of the device used to access the content. Examples of over-the-top devices include Apple TV, Chromecast, Amazon Fire, and Roku.
What is CTV?
CTV (connected television) is under the umbrella of OTT because it is connected to the internet, but more specifically, CTV is a connected television. CTV devices look and feel more like traditional television but have streaming capabilities. A connected TV is a television automatically loaded with a streaming service. Customers who purchase a connected TV will need an internet connection to have access to register for streaming services which may include movies, live television stations, network shows, sports, video games, and more.
Benefits of Advertising on OTT/CTV
Unlike traditional television advertising, where you purchase a time slot and hope that your ideal audience is watching at that time, OTT and CTV advertising allows you to define your audience and then target them in advance.
OTT/CTV advertising is one of the best ways to directly target your audience, track their data, and reach them in the comfort of their living room.
For example, if you own a real estate business and you want to target an audience in 12 specific zip codes, with a specific income, who have interests in new homes, remodels, and investments – you can do that! You are now spending your advertising dollars serving impressions to your target audience regardless of where, when, and on which device they are using.
OTT/CTV Reporting Metrics
The investment for OTT/CTV is based on a CPM (cost per thousand impressions) which allows advertisers to reach their target audience at a fraction of the cost of traditional media buys.
OTT/CTV is also an incredible source of data collection. With this marketing lever, you can monitor:
- Video Completion Rate – the percent of viewers who watched to the end.
- Clicks – the number of clicks from your ad to your website.
- Ad delivery by device – to which devices your ads were delivered.
- Performance by the time of day.
- Performance by specific days.
- Ad viewer demographics.
- Reach – the number of unique people who were exposed to your ad.
- Frequency – the average number of times you’re delivering your ad to a given person.
This allows you to see the big picture and how this marketing strategy is affecting your business.
Here are some tips to help you plan an OTT/CTV advertising campaign.
- Define your audience: What message are you serving? Who is your ideal target audience? When creating your campaign, use your provider’s expertise to make sure you are using all options available to serve your ad impressions to the most relevant audience for the most effective use of your advertising dollars.
- Learn your placements options: There are cost differences in the programmatic buy prices between the placements and the expected viewers. Learn about co-viewing pricing and pre-roll placement which may be giving you a lower CPM (cost-per-thousand impressions) but it may not be reaching your audience most cost-effectively.
- Expect transparent reporting: Reporting on OTT and CTV campaigns can be very granular. Will you have access to a live dashboard? Daily reporting? Conversion reporting? Know in advance what you will be able to learn from your reporting.
Over-the-top and connected television marketing strategies are exciting and can be afforded by any business big or small. No matter your industry, your audience is streaming on OTT/CTV and together we can help you meet your audience where they are spending their time.
If you need more information on this topic or help setting up an OTT/CTV campaign for your company, always feel free to reach out to Xcite!