OTT Marketing: The Ultimate Guide to Boosting Brand Visibility

Introduction

Over-the-top (OTT) video services have transformed entertainment consumption patterns worldwide. As OTT platforms like Netflix, Prime Video, Hulu, etc. disrupt traditional TV viewing, advertising budgets are migrating online to reach highly engaged digital audiences.
OTT marketing represents an exciting opportunity for brands looking to effectively engage cord-cutting consumers. Let’s examine what OTT marketing entails and what makes it a must-have channel for marketers today.

Overview of OTT Marketing

OTT marketing refers to digital marketing messages targeted to viewers via over-the-top streaming platforms and apps.
It enables advertisers to showcase ads on three key types of OTT content:

Original content on OTT

Ads shown during original content produced exclusively for OTT viewers, like Netflix shows, Hulu Originals, Amazon Originals etc.

TV stations that stream live

Ads during live TV streaming through OTT-delivered cable-replacement services like YouTube TV, DirecTV Stream, Hulu + Live TV.

Content is available for libraries on demand

Ads on library movies and shows watched on-demand on OTT services like Disney+, Apple TV+, Paramount+, etc.

OTT marketing on ad-supported apps is similar to traditional TV ads, built around commercial breaks. Subscription-based apps like Netflix run limited promotions between content.

Important formats for OTT marketing:

1) Pre-roll video ads (before content playback)

2) Mid-roll video ads (during content streaming)

3) Display ads (banner ads on app interface)

4) Sponsorships, promotions and product placements

The Increase in Acceptance of OTT Marketing

Several interlinked factors are fueling phenomenal growth in OTT marketing :

Significant increase in OTT consumption

The global pandemic accelerated the already aggressive growth in over-the-top video consumption. Per eMarketer, US adults will spend over 1 hour daily on OTT viewing, up 14.8% vs. 2020.
With consumers increasingly cutting the cord, OTT platforms provide a vital channel for brands to maintain TV ad reach.

Younger audiences for streaming

OTT viewership is skewed towards younger millennials and Gen Z demographics with maximum spending power and harder to reach via traditional media. OTT marketing enables targeted exposure to these high-value cohorts.

Transfer of TV ad funds to digital

Brands are re-allocating TV ad budgets to OTT platforms providing similar high-quality video inventory in brand-safe premium content environments.

Interactivity and addressability

Unlike linear TV, OTT provides superior targeting, measurement, and interactivity via buttons and choice screens for calls-to-action.

Creative ad formats

OTT enables creative ad innovations like pause ads, binge ads (after autoplay sessions), etc. that are impossible on broadcast TV.
The personalized, interactive, and measurable nature of OTT marketing provides powerful appeal for performance-focused marketers.

OTT Marketing’s Principal Advantages for Brands

Accurate Targeting

Leverage customer data and context to deliver hyper-targeted ads aligned with individuals’ interests and preferences. Target by demographics, device, location, and more.

Real-time Optimization

Continuously optimize campaigns by creative, audience segment, and timing based on real-time performance data.

Interactivity

Drive action through interactive ads with microsurveys, store locators, etc.

Clear-cut Measuring

Robust metrics for reach, completion rates, conversions, etc. provide full-funnel campaign insights.

Premium Video Environment

Quality premium video content keeps viewers engaged, ensuring your brand advertises in a brand-safe context.

Improved ROI

Combined with advanced targeting and analytics, OTT marketing delivers a superior return on investment compared to linear TV.

Cord-Cutter Audiences

Reach consumers abandoning traditional TV via streaming OTT apps on mobiles, tablets, and connected TVs.
OTT marketing represents the future of video marketing, with the precision of digital combined with the immersive sight, sound, and motion of TV.

Key OTT Marketing Platforms

Many OTT players provide their own advertising capabilities to marketers:

1) Hulu offers robust OTT ad targeting and inserts ads both in its live and on-demand content.

2) Roku enables advertising across thousands of OTT apps on Roku devices via its Roku Channel and ad network.

3) Amazon Fire TV provides OTT ad inventory across its Fire TV streaming devices.

4) Samsung TV Plus: – ad-supported OTT channel available on Samsung smart TVs.

5) Pluto TV – a free, ad-supported OTT television service owned by Paramount Global.

6) Tubi – Fox Corporation’s free, ad-supported OTT video platform.

In addition, major demand-side platforms like TradeDesk, Amobee and SpotX offer extensive OTT marketing capabilities for brands.
As OTT consumption grows, ad dollars will continue shifting from linear TV budgets to streaming platforms for engaging digital video campaigns.

Key OTT Marketing Metrics

Successfully tracking and optimizing OTT ad performance requires monitoring a suite of metrics:

Impressions

Number of times an ad is loaded or served. Indicates reach.

Views

Number of times an ad is actually seen. More meaningful than impressions.

Completion Rate

Percentage of video ad views that were watched to completion. Signals engagement.

Click-through Rate (CTR)

Ratio of ad clicks vs. impressions. Helps gauge appeal.

Conversions

Key actions taken post-ad view based on campaign goal – purchases, sign-ups, downloads, etc.

Frequency

Average number of times each user sees an ad to determine ideal repetition.

Cost Per View (CPV)

Advertising cost per video view. Used to calculate value. Analyzing metrics by ad variation, audience segment etc. provides actionable data to refine campaigns for better OTT advertising results.

OTT Marketing Best Practices

1) Leverage audience insights to create targeted, relevant ads based on individual viewing habits and interests.

2) Test different ad lengths and formats to determine the ideal creative approach across platforms.

3) Avoid repetition by carefully managing frequency caps to minimize ad fatigue.

4) Track engagement metrics like completion rates versus only impressions for a true picture of viewability.

5) Focus on business outcomes like visits or sales rather than vanity metrics like clicks or views.

6) Blend OTT and linear TV buys across screens for combined reach at optimum efficiencies.

7) Be relevant to the video content so your ad resonates with the viewer in the moment.

Well-planned and executed OTT ad campaigns can amplify brand visibility and performance multi-fold compared to traditional broadcasting.

Key OTT Marketing Trends

1) Explosive growth in streaming TV advertising as cord-cutting accelerates

2) Ad-supported subscription tiers becoming more popular

3) Shoppable ads enable instant checkout and purchase

4) Local/regional OTT ad targeting

5) AI-optimized dynamic ad insertion and personalization

6) OTT/CTV advertising going programmatic

7) Rising private marketplace OTT ad deals

8) New interactive ad formats like pause ads and binge session ads

OTT advertising represents the new frontier of digital marketing. As consumer behavior shifts to on-demand streaming, brands must allocate advertising budgets accordingly to engage future-forward audiences.

Conclusion

OTT marketing represents the future of video marketing – with the sight, sound and motion of TV-like content combined with the targeting and optimization of digital. As OTT consumption grows exponentially, advertising dollars will continue following audiences to streaming platforms.
Savvy advertisers must embrace OTT advertising early on to influence future viewing habits and dominate the space as its massive potential unfolds. With strategic planning, high-impact creative and robust analytics, OTT advertising delivers superior marketing ROI across the customer journey. The stage is set for interactivity-led video experiences to transform brand communications.

FAQs

Q: What are the main OTT marketing formats?
Ans: Pre-roll, mid-roll, and display ads on OTT platforms mirror traditional TV commercials. There are also innovative new formats like pause ads, binge ads, etc. enabled by digital delivery.

Q: What are the benefits of OTT marketing ?
Ans: Key benefits include precision ad targeting, real-time optimization, transparency, interactivity, the ability to reach cord-cutter audiences, and measurement of business outcomes.

Q: How does OTT marketing differ from linear TV?
Ans: Unlike linear TV, OTT enables better ad targeting, frequency capping, engagement metrics, interactivity, and attribution across devices and platforms. But they both offer high-quality video ad environments.

Q: How much do OTT platforms charge for advertising?
Ans: OTT ad rates are based on several factors like content genre, ad format, targeting, platform exclusivity, etc. Video ad CPMs typically range from $20 to $60.

Q: How can I measure OTT marketing performance?
Ans: Key metrics to track for OTT ads include impressions, views, viewability, completion rates, clicks, conversions, frequency, and cost-per-view. Analyze across audience segments and platforms.