OTT Advertising Trends to Watch

Are you familiar with OTT advertising trends? Over-the-top (OTT) advertising is revolutionizing how brands connect with audiences beyond traditional cable TV.

As digital landscapes evolve, OTT platforms like streaming services have become the new battleground for marketers aiming to capture the attention of “cord-cutters” – those who’ve ditched traditional cable in favor of internet-based entertainment. This shift towards digital consumption has made OTT advertising a crucial element of modern marketing strategies.

Let’s delve into what OTT advertising is and explore the key OTT advertising trends that are shaping its future.


What is OTT Advertising?

OTT Advertising Trends: What is OTT?

OTT stands for ‘over-the-top’ and refers to TV content that is accessed using the internet, rather than a cable connection.  More specifically, OTT advertising is the act of marketing to specified audiences, like ‘cord cutters’, on streaming services. Cord cutters refer to the people who have completely stopped using cable/satellite TV and have switched to streaming platforms as a replacement. As of 2021, Cord cutters represent 27% of the US population! This percentage will continue to increase with time.

It is important to stay up-to-date on the latest trends so that your business can grow. With that being said, here are 4 OTT advertising trends you’ll want to pay attention to.


Emerging OTT Advertising Trends

1. Increased Spending on OTT Ads

The investment in OTT ads is witnessing a substantial rise. According to Sensor Tower’s study on OTT Advertising in the US,  an average of $3.26B was spent quarterly on OTT Ads. This is a lot of money, and these numbers only continue to increase with time. Airlines, travel agencies, and food delivery companies are some of the top contributors when it comes to OTT ad spend.  This trend underscores the shift in viewer habits and the need for brands to adapt by leveraging OTT platforms for better consumer reach.

Hand holding a remote pointing to a smart TV

A recent study conducted by Hootsuite found that 92% of internet users watch video content online weekly. With this increase in streaming channels and online viewing in general, brands need to invest in OTT in order to better reach consumers.

If your business is not currently utilizing OTT, reach out to Nartak Media Group today! We can help you get your first OTT campaign ready to launch! Partnering with a skilled agency like Nartak Media Group can ease the transition into OTT advertising, ensuring your campaigns are well-structured and effective.


2. Personalization in OTT

Personalization has long been a cornerstone of effective advertising, but its application in OTT advertising elevated consumer engagement to new heights. Tailoring ads to match viewer preferences not only boosts conversion rates but also enhances brand perception. 

Another level of personalized OTT ads is called dynamic advertising, or “retargeting advertising”. This is when the content of an ad changes depending on who is watching it. For example, if a consumer engages with an ad by visiting a brand website, tracking typically shows the consumer more relevant advertisements later. Using personalized ads in your OTT strategy leads to both increased brand awareness and a higher conversion rate!


3. The Rise of Hyperlocal Advertising in OTT

What if you could target your audience by a specific location, like down to an address? With OTT local ads, another rising OTT advertising trend, you can! Geo-location is an extremely powerful tool that lets you segment your audience by location to increase relevance. 

smart tv with streaming services displayed

For example, let’s say you are a landscaping company in Pittsburgh. You may choose to hire a local advertising agency to run a geo-targeting ad for new homeowners in the area. Focusing your ads on one specific location will allow you to focus on a smaller segment of people while spending advertising money more efficiently.


4. Programmatic OTT Advertising

As the digital advertising ecosystem becomes more sophisticated, programmatic OTT advertising is emerging as a key trend. This automated buying and selling of ad inventory ensures ads are more efficiently placed, targeting the right audience at the optimal time.

The use of algorithms and AI in programmatic OTT allows for real-time bidding (RTB) on ad spaces across various streaming platforms, ensuring advertisers can maximize their ROI through precise targeting and reduced ad spend waste. This trend signifies a move towards more agile, responsive advertising strategies that can adapt to changing viewer behaviors and preferences.

5. Integration of Interactive Ads

Interactive ads in OTT platforms are revolutionizing the viewer experience by making ads more engaging. Unlike traditional TV commercials, interactive OTT ads offer viewers the chance to interact directly with the content through their devices. This could range from simple polls and quizzes to more complex interactions like exploring product features or even making purchases directly from the ad.

This interactivity not only increases engagement rates but also provides advertisers with valuable feedback and data on consumer preferences. As technology advances, we can expect to see more innovative uses of interactive ads that bridge the gap between viewing and direct consumer action.


End Note

The trends highlighted above illustrate the dynamic nature of OTT advertising and its growing significance in a brand’s marketing mix. As we navigate the evolving digital landscape, embracing these trends can help brands stay ahead and connect with their audiences more effectively.

For businesses ready to harness the power of OTT advertising, Nartak Media Group stands ready to craft creative, strategic campaigns that drive results. Reach out today to explore how OTT advertising can elevate your brand’s digital presence. Contact us today to get started!



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