For years, brands have been told that the only feasible way to make money through digital marketing is by using Facebook and Google Ads. Because of this, there’s a hesitation to test out new advertising methods.
This is not to say Google and Facebook Ads are going away any time soon.
But the reality is, your audience is hanging out elsewhere besides social media and Google. In fact, they’re hanging out watching television (a lot of it), and one way to tap into this market is with over-the-top (OTT) advertising.
According to Nielsen’s June 2024 report of The Gauge™, time spent streaming soared to 40.3% of total TV usage. That’s a huge opportunity for your eCommerce business.
OTT ads are a rising profitable alternative to traditional digital advertising that offers access to your audiences across multiple devices simultaneously. The time to diversify is now.
In this blog, we’re going to explain the difference between OTT and traditional advertising, how you can use OTT ads to diversify your ad strategy, and understand the best OTT advertising platforms for your eCommerce business.
What is OTT Advertising?
Over-the-top (OTT) advertising are advertisements delivered directly to viewers via streaming services vs. traditional viewing mechanisms like cable, broadcast, or satellite TV. You can think of them as streaming TV ads delivered through an internet connection.
“Over” in OTT stands for devices that go “over” a cable box to give advertisers and media companies flexibility to plan advertising and scheduling selectively, bypassing traditional TV providers that determine programming.
With OTT ads, advertisers are in the driver’s seat, not traditional cable TV programmers. You have control and choice over what, how, where, and when viewers are served your advertisements, such as:
- Ad length: OTT ads are typically short and snappy, not long like traditional TV commercials. Viewers can also skip ads after a certain timeframe.
- Devices: Capture your audience’s attention no matter where they are, across computers, mobile phones, smart TV, tablets, or gaming consoles.
- Ad types: Choose from several ad types, such as ad-supported tiers or brand partnerships.
- Audience targeting: Zero in on your audience with targeted OTT ads, such as by gender, age, income level, location, education, ethnicity, or even time of day.
- Analytics: Programmatic OTT platforms give advertisers visibility into metrics and performance indicators to iterate and assess campaign performance
OTT services allow users to stream content across various devices like smart TVs, desktop, mobile, gaming consoles, or tablets through streaming platforms like Apple TV, Amazon Prime Video, or YouTube TV.
For content publishers and marketers, OTT provides a direct line of communication to your ideal audience. By curtailing the middleman of traditional content programming, you can better personalize and target your advertising strategies based on how and where your audience is viewing content.
OTT vs. CTV: What’s the Difference?
Perhaps you’re thinking of CTV, or connected TV advertising, and wondering about the difference. Let’s define them with an example.
The OTT platform Netflix delivers streaming content to a viewer on their internet-connected Apple TV, which is the CTV device. OTT delivers streaming content, CTV is the device that receives the content. Roku TV and Amazon Fire TV are also examples of CTV devices.
OTT platforms are versatile and meet viewers wherever they are, whether that’s binging their favorite show on a laptop in bed or watching YouTube on their phones at the gym.
CTV, on the other hand, is more rooted by its internet-connectivity. These ads are only served on those screens. You can’t take your living room 80” TV to the gym but you could certainly try!
Still, there are benefits to both.
OTT
- Versatile and flexible across devices, allowing you to be at the right place at the right time
- Access to diverse audiences across devices for more targeted audience segmentation and data-driven insights to drive better ad performance
CTV
- Bigger screens offer more immersive ad experiences, capturing audience attention
- Access to diverse audiences across devices for more targeted audience segmentation and data-driven insights to drive better ad performance
With data-driven insights, you can tailor advertising strategies and move more of your budget into the OTT ad bucket and out of the Facebook and Google ads bucket.
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OTT vs. Traditional Digital Advertising (Facebook and Google Ads)
We all know our tried and true friends, Facebook and Google. They’ve been sidekicks to marketers for years because they offer massive reach for eCommerce brands. But in the video streaming industry, OTT ads can offer other additional benefits.
| Primarily a video-based, full-screen, TV-like experience played before, during, or after streaming content. | Offered in various formats (images, video, text), integrated into social feeds or search results, and often smaller and less immersive. |
| Streaming-first audiences across multiple devices. | Massively used but primarily on mobile and desktop. |
| Targets: Demographic, geographic, and behavioral targeting, household-level targeting, and content-based targeting (e.g., genre preferences). | Targets: Large individual-level targeting, interest-based and search intent targeting, and retargeting capabilities. |
| More immersive viewing experience with higher completion rates due to non-skippable formats. | Variable engagement rates and competition with other content for attention. |
| Premium inventory generally means higher CPMs (cost per mile) sold on a CPM basis. | Flexible pricing options (CPC, CPM, CPA) at a lower entry point for ad spend, but a highly competitive bidding landscape that’s not always nice to beginners. |
| Video content likely requires higher production value, but less frequent creative updates. | Ad creative is friendly to the everyday user, but requires frequent new ad creative. |
Benefits of OTT Ads for Advertisers
Research shows the United States is expected to generate $132.9 million in 2024 from OTT advertising.
Let’s take a look at the benefits to see why you should consider adding OTT services into your marketing strategy.
- Device-agnostic: Unlike Facebook and Google ads that primarily rely on computers and phone screens, OTT lives across every device that can stream content.
- Engagement: OTT ads often play in full-screen environments, not small ads you’re likely to scroll past, boosting their engagement.
- Audience targeting: OTT platforms really know their viewers, targeting down to viewing habits or favorite genres. That means precise ads for you across the marketing funnel.
- Integrated experience: Let’s be honest, a lot of digital ads are disruptive. But OTT ads integrate smoothly into the viewing experience, whether live streaming or on-demand.
- Audience reach: Get access to people that cut the cable cord and switched to streaming.
Additionally, video on demand services like SVOD, TVOD, and AVOD offer diverse models to cater to different viewer preferences.
When you use a demand-side platform (DSP) like Untitled to manage OTT ads, you get access to an identity resolution tag that allows you to capture who viewed your ads and clicked and entered your website.
You can track this behavior in the DSP to show clean attribution that provides you with more data on qualified buyers.
Best OTT Platforms for Advertising
Like most advertising channels, not all OTT (over the top) platforms are created equal.
There are large streaming services like Apple TV, Amazon Prime Video, and YouTube TV, and smaller but mighty players include Hulu, Peacock, Max, and Disney+.
Apple TV brings a premium audience and seamless ad integration, while YouTube TV offers diverse content and the power of Google advertising’s reach and analytics. Alternatively, Peacock and the like are growing ad-supported price tiers, opening the door to advertisers like you.
Ultimately, the best platform for you depends on your target audience and advertising goals. However, it’s important for any platform to consider video monetization strategies.
Experiment with pre-roll, mid-roll, and post-roll ads to maximize exposure and understand what resonates most with your audience. Interactive ads and shoppable content are wonderful options for eCommerce businesses.
How OTT Ads Help Generate Revenue and Boost User Engagement
OTT ads are popular for eCommerce brands because they show your products in action, creating desire amongst an already captivated audience through an effective OTT service.
The precise nature of OTT ad targeting also allows your brand to reach nice audiences with tailored messaging, boosting conversion rates with higher-quality leads that affect your bottom line.
And interactive OTT ad formats make purchasing your product a breeze. With the click of a button, turn viewers into customers.
OTT Ads as a Profitable Alternative to Facebook and Google Ads
OTT ads are less intrusive and more personalized than a Facebook or Google ad that might be poorly targeted or repetitive, allowing your brand to connect with audiences in a more authentic way.
To incorporate OTT services into your existing marketing strategy, start with the basics and identify your target audience and the platforms they use most. Dive into data-driven insights to guide the video creative tailored to those viewers.
Better yet, consider combining OTT with your existing Facebook and Google campaigns for a multi-channel campaign approach that increases reach and chance of engagement. Pro tip: a demand-side platform is a great solution to manage ads all in one place.
Above all, OTT ads historically have a completion rate of 90%, making them a profitable and reliable option.
Conclusion
OTT ads can significantly enhance audience engagement, deliver personalized experiences, and increase ROI for your eCommerce business within the video streaming industry. OTT ads are a powerful tool on any video streaming platform, providing robust solutions for marketing and content delivery.
By diversifying outside of traditional digital advertising channels, you open the door to new opportunities where your audience may live and where your competition may not.
Ready to try out OTT ads at wholesale ad-buying rates? Try Untitled free for 14 days and see your traffic soar.
