Let’s start with the basics. OTT stands for "over-the-top" because originally all OTT devices were placed on top of a televisions set's cable box. Now, the word OTT refers to a device that streams video over the internet onto a TV screen and is not a desktop, laptop, or mobile device. Examples of OTT devices include Smart TVs, Apple TVs, Chromecast, PlayStation, Xbox, Amazon Firesticks, and other devices.
OTT content providers include Netflix, Amazon Prime Video, Hotstar, Disney+, Apple TV+, Hulu, SonyLiv, HBO Max, and more. Certain OTT content providers allow advertisers to purchase ad placement in some of their content. OTT advertising offers some unique advantages to business owners, especially when used correctly.
Since OTT devices are primarily used to watch video content and not to browse the internet, OTT advertising is not optimal for generating website visitors or other types of conversions. Instead, OTT advertising is an excellent way to increase brand awareness and get many impressions at a low cost.
One advantage OTT advertising offers over traditional TV advertising. This is the opportunity to target ad placements to a very specific audience. Instead of just choosing an ad placement inside a national program, OTT advertising allows one to target OTT devices within a very precise geographic area. This allows advertisers to spend their budgets more efficiently and improves the overall return on investment.
For example, if a company that sells renter's insurance wants to run an ad to raise awareness about their product, they could buy an ad placement during a popular TV program with high viewership. The downside of this strategy is that many of the viewers watching the program will be homeowners who have no interest in renter's insurance, so many of those impressions are a waste of money.
A geotargeted OTT advertising campaign would allow the company to target precise geographic areas which contain many apartments and rental properties. This strategy will ensure that the renter's insurance advertisement is seen by an audience who will potentially want to buy renter's insurance. Implementing a strategic geotargeted OTT campaign will result in a better return on investment than a less targeted one.
Want to push your marketing over the top with OTT? Contact the digital marketing experts at Integrated Webworks
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