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In this digital age, more and more people are turning to online platforms for convenience and flexibility, and it is only natural that the world of advertising follows suit. OTT (Over-the-top) advertising or ads delivered through online streaming services have become the current and future marketing trends every marketer needs to watch.
Without further ado, let’s delve into this topic in more detail.
In the US, the number of OTT users will reach 259.8 million by 2029, with the percentage of users increasing from 71% in 2024 to 74.1% by the same year. With these numbers, it is no surprise that many companies have started advertising on OTT platforms.
Now that we know how the near future looks like, we will get to what OTT advertising actually is. OTT advertising implies that the advertiser is going ‘over-the-top’ of the internet, bypassing the traditional way of cable connection. Simply put, OTT advertising is similar to a TV commercial but shown on streaming services like Netflix, Hulu, and Disney+.
Since it bypasses the traditional way, OTT needs an internet connection rather than a cable. That being said, as long as viewers have internet access, OTT can be accessed anywhere, anytime, on a computer, tablet, TV, or even smart TV.
However, advertising on streaming services offers more than just numbers. It offers flexibility and interactive elements, which results in higher viewer engagement and better results. On top of that, OTT advertising is also cost-effective. We’ll discuss these benefits in more detail in the following sections.
One great thing about advertising on streaming services is the precision of demographic targeting. OTT lets marketers target specific groups of people based on their particular demographics and interests, in contrast to TV advertising, which reaches a large but imprecise audience. This way, viewers will perceive the ad as relevant or useful rather than an annoyance.
To do that, OTT platforms collect extensive user data that lets advertisers make very specific ads. For example, advertisers can see what users like to watch and find people interested in sports. In turn, this information lets them show these groups ads for sports events, sports equipment, and team apparel.
In this modern age, there are newcomers to the customer group that were never considered back in the glorious era of television. These groups are cord-cutters, or those who have abandoned traditional TV, and cord-nevers, or those who have never used TV. Cord-cutters typically consist of young, tech-savvy people drawn to the convenience and flexibility of streaming services.
As these groups are not used to conventional ads, it takes a particularly interactive and personal one to keep them interested in the ads without pressing the ‘skip’ button. With interactive ad formats, which we will discuss right after this, and precision targeting, OTT is undoubtedly a great way for advertising to reach these groups that would be extremely difficult to reach otherwise.
Interactive features definitely need to be considered as they enhance viewer engagement, which results in higher interaction metrics. Also, what makes this feature more appealing is the fact that viewers will more likely remember the message of the ad and take action when they actively participate in the ad
The most common example of the interactive ad formats OTT offers are clickable overlays that allow viewers to ‘learn more’ about the offers in the advertisement. Another element that has gained popularity these days is interactive videos, where viewers can choose different paths that lead to various outcomes.
By combining interactive and on-demand features OTT offers, ads will feel like a natural element of the viewing experience rather than an interruption. This natural experience is what we call an ‘immersive brand experience’. With so many possibilities in over-the-top (OTT) advertising, creative freedom is enormous, which allows the ads to blend in seamlessly with the show.
Advertisers can also include captivating stories when advertising in streaming services to engage more people and leave a more lasting impact. Top-notch graphics and audio can also be used to wow viewers even more so that the brand’s message can stick in people’s minds and improve ad recall.
When it comes to flexibility, OTT advertising reigns supreme. Advertisers can choose from many options that will give them the advantage of placing ads that best suit their goals, including:
Any business can advertise on streaming services, no matter how big or small. Small businesses can start advertising with a small budget and increase as they see results. Large companies, on the other hand, can use the advanced features that OTT advertising provides to maximize the ads’ impact.
The benefits of OTT advertising we mentioned before, especially precise targeting and flexible ad placements, can also help businesses reduce their ad expenses, making them cost-effective. This combination particularly appeals to companies seeking to optimize their advertising effect without breaking their budget.
The growing reliance on internet platforms makes over-the-top (OTT) advertising more important than ever. By advertising in streaming services, businesses can accurately target their specific demographics and viewers with particular interest with personalized ad delivery by leveraging all the benefits OTT has to offer, from interactive ad formats, immersive brand experience, flexibility, and customization to budget control.
Our team at Nartak Media Group can help you elevate your digital advertising with streaming services as we specialize in all things digital, from OTT ads to comprehensive digital strategies.
Reach out to us today and find out how we can help your business thrive in the digital age.
