How tech has brought together OTT/Video and Advertising

Mar 6, 2020 | Articles

Andrea Burgueño

Andrea Burgueño

Contributor

Tech is constantly re-shaping the way we live and interact with the world. From the way we play games or listen to music, to the way watch TV. It is undeniable true that a faster and more accessible Internet along with cutting-edge technology have changed the game. But also, that tech has brought together OTT/Video and Advertising in a smart, organic way.

A few years ago, most people didn’t even imagine watching their favourite TV show on their phone. However, now we find it absolutely normal to subscribe to streaming services and watch a movie on our way to work. Because we had new devices, we could enjoy new services. As simple as that. Tech developments offered new possibilities. But new possibilities meant new opportunities too: advertisers can finally meet their audience’s new demand. Why? Because, unlike traditional TV, OTT video services can deliver hyper-local, personalized content. This translates into a much better user experience.

ott video growth

More accuracy and control, better results

The significant growth of VOD through subscription services and apps has created a massive challenge for buyers. But it has forced advertisers to change their media strategy too. However, this is an opportunity to improve the efficiency of the current advertising forms and models. Also, a way to better control media buying margin. This is mainly the reason why corporations like Fox or Byron Allen are acquiring local radio, TV and media companies. Advertisers are wisely transitioning from traditional media to OTT in order to reach hyper-local audiences. This is a key factor to keep scaling.

Since OTT allows targeting by demographics, interests, behaviors and geographic location, brands are now able to reach a more specific audience. Also, they can go really granular by adding third-party data such as in-market segments, life stage or income. This way, buyers are able to improve accuracy. In other words: OTT improves effectiveness. Great news, right?

what users prefer

Maximizing the opportunity

Apart from better targeting options, OTT video advertising has another great advantage. Ads will only play when users are actively viewing. This is easy to determine since they can play or pause videos themselves. This control over the displayed content also opens the door to new ways to engage with the audience. Though, they all require becoming more creative and flexible. Interactive or playable ads are good examples of this.

Every single time that users play or pause a video is an opportunity to maximize both, ad and subscription revenue. From commercials displayed between episodes, to interactive ads, there are many different ways to impact viewers. However, they all involve strategizing. Creating new, adapted user experiences across different ad forms and spaces might sound like an easy thing to do. But let’s be honest. It is not. It requires a lot of effort, thinking and planning.

In this new context, new ad models and formats are key. Not just to take advantage of new forms of content consumption, but also to survive in a very complex media environment. Publishers need to be creative, flexible and nimble to thrive. But so do brands and companies. Advertising is now paired up with OTT video subscription and this is challenging, but still a great opportunity. 

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