Tech is constantly reshaping 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 that faster and more accessible Internet connections along with cutting-edge technology have changed the game in so many sectors. 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 phones. Now, we find it absolutely normal to subscribe to streaming services and watch a movie on our way to work. New devices mean new services. New possibilities also mean new opportunities – 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. This is an opportunity to improve the efficiency of current advertising forms and models. It’s additionally a way to better control media buying margin. This is mainly the reason why corporations such as 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. It 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.

what users prefer

Maximizing the OTT video 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 these require more creativity and flexibility. Interactive or playable ads are good examples of this.

Every single time that users play or pause a video is an opportunity to maximize 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 it’s 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 with OTT video subscription and this is challenging, but still a great opportunity. 

What is an OTT video service?

OTT (Over The Top) video services refers to platforms and apps that offer audiovisual content through the Internet.

How do advertising and OTT video services work together?

With the growth of streaming services, OTT video has provided great opportunities to the advertising industry, like more accurate targeting and control over advertising forms and models. In short, it increases efficiency.