Are you familiar with OTT advertising? This form of advertising is becoming more and more popular as people become more digital, and we are here to help you keep track of the latest OTT advertising trends!
What is OTT Advertising?
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 to watch in 2023 and beyond:
OTT Advertising Trends:
1. Increased Spending on OTT Ads
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.
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!
2. OTT Personalization
Although personalization is not new when it comes to advertising, it is a growing and important trend. Personalization helps digital marketers drive higher conversion rates because they can tailor campaigns to specific audiences. Personalized content is more likely gain positive reactions from people because the content itself is more relevant.
Another level of personalized OTT ads is something called dynamic advertising, or “retargeting advertising”. This is when 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, typically, tracking works to show the consumer more relevant advertisements later. Using personalized ads in your OTT strategy can lead to both increased brand awareness and a higher conversion rate!
3. Hyperlocal Advertising
What if you could target your audience by a specific location, like down to an address? With OTT local ads, another rising OTT trend in 2023, you can! Geo-location is an extremely powerful tool that lets you segment your audience by location to increase relevance.
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 to 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.
Today, we covered just 3 of the many OTT advertising trends that are making headway in 2023:
- Increased Spending
- OTT Personalization
- Hyperlocal Advertising
If you are looking to grow your sales in 2023, the Nartak Media Group team is here to help! We will work with you to develop a creative, strategic, and results-oriented OTT plan. Contact us today to get started!