As consumers’ movie and TV viewing habits gravitate toward digital platforms, brands have an opportunity to activate targeted Connected TV (CTV) and Over-the-top (OTT) video advertising at a lower cost than traditional linear TV advertising.
What’s the difference between CTV & OTT?
OTT stands for ‘over-the-top.’ It refers to TV content streamed over the internet without the need to be subscribed to a traditional cable box service. This includes TV streamed through Hulu, Netflix, Amazon and more.
CTV is a subset of OTT and stands for ‘connected TV.’ Essentially, it’s the type of device on which OTT content is viewed. This includes smart TVs, TVs adapted with streaming plug ins and game consoles.
The importance of OTT & CTV Advertising:
As consumers continue to change their TV habits and shift their consumption towards OTT content, it’s important for marketers to understand the benefits of using this growing medium to engage consumers at greater scale than traditional mediums. What once seemed complicated and unaffordable to most (traditional TV advertising), is becoming more accessible and appealing due to the benefits of addressable targeting and granular reporting.
Benefits of OTT & CTV Advertising:
There are several marketing benefits surrounding OTT and CTV advertising, but the two most notable advantages are reach and targeting capabilities.
Programmatic advertising, which is the use of automated technology for media buying, as opposed to traditional (often manual) methods of digital advertising is utilized with OTT and CTV advertising. Programmatic advertising gives advertisers the ability to expand reach beyond traditional means. This means you have access to more current and potential customers than ever before — on multiple platforms and at the click of a button!
Furthermore, to combat the ad’s over-saturation, programmatic algorithms ensure you optimize reach while still targeting relevant audiences. This means, not only can you expand your reach to various platforms and media channels, but the algorithms match your consumer criteria to only relevant audiences with little to no effort on your part.
What are the best strategies for CTV/OTT?
OTT is typically used for branding and awareness. This means that with OTT, businesses are simply getting their name, products, and/or services known so potential customers keep them top of mind when they are in need. Therefore, it’s important that you do the following when utilizing CTV/OTT:
- Consider viewer behavior and nuances of the medium.
- Avoid user fatigue with creative refreshes.
- Link your CTV/OTT with other digital products.
Video is hot right now and consumption is way up. Make sure you’re using it in your marketing strategy. As more and more people are “cutting the cord” and taking advantage of streaming opportunities for their TV consumption, you should be too.
Want to learn more about your video advertising options? Click here to read our blog “OTT/Video Pre-Roll …What’s the Difference?”.