What is OTT?
The True Over the Top OTT Meaning
What does OTT stand for? The OTT meaning can be defined as over-the-top programming. Furthermore, the OTT meaning slang, commonly used in the industry, is to provide video content over an internet connection. Television services are not provided through a closed connection. A cable or satellite TV provider isn’t a requirement to access the OTT market. The only main requirement is a stable internet connection and a device that can stream content. Viewers pay streaming services a fee to watch content instead of a cable or satellite provider.
Recently, over the top/OTT meaning became important to marketing as viewer habits started to transform. Viewers are still able to access high-quality content, including popular movies and TV shows, but they are using a web-based application. The OTT content from the application is accessible through live TV or on-demand libraries
OTT content can be streamed in several ways. Smartphones, tablets, and other mobile devices can play OTT content through applications such as Hulu, Discovery Plus, and Paramount Plus. Another option is to use OTT devices, better known as CTV devices, such as Roku, Apple TV, Sony Playstation, and Amazon Firestick. The devices connect online and then display OTT content through streaming applications. Finally, a Smart TV allows viewers to connect online and download content directly onto their screens without an OTT device. Most OTT content is served directly to the consumer without the need for a middleman like a cable TV provider.
The OTT market in the advertising sector has grown substantially over the last several years. According to eMarketer, U.S. residents spend an average of 80 minutes each day viewing OTT content. Since more and more OTT content is being accessed, advertising dollars have increased in the field. Spending has increased through 2021 by almost 60 percent with approximately $14.4 billion spent. Projections show that because of external issues like the COVID-19 pandemic, more households will continue to rely on streaming services to watch videos through 2022.
Advantages of OTT TV for Marketers
OTT advertising can be extremely advantageous to marketers. First and foremost, the marketer is getting their ads shown on top-tier programming channels. OTT digital content includes local and cable channels. OTT TV can be viewed live through applications such as Hulu Live and Sling or on-demand through the streaming service’s on-demand library. On-demand libraries for most applications are substantial with typically thousands of titles to choose from.
Another positive about OTT advertising is that completion rates are high for ads. Strategus states that OTT video completion averages upwards of 90 percent. OTT video completion rates refer to the percentage of viewers that watch an ad from start to finish. Attribution tracking rates are also significant through OTT platforms. From the available tracking features, advertisers can see how many of their viewers take action after seeing an ad. Actions can include visiting a website, making a purchase, or even scanning a QR code.
OTT advertising also permits more flexibility in the types of ads shown to market a brand. For traditional commercials, video spots are short and last about 30 seconds. Advertisers are unsure of engagement and pricing comes at a premium because of the limited number of advertising spots. Comparatively, OTT offers a lot of options to marketers, including interactive videos, banner ads, pause ads, and static ads.
Marketers OTT Marketing Strategy
How to buy OTT advertising starts with looking at the options available. Firstly, advertisers can review whether they want their ads on a subscription video-on-demand (VOD) service or a free streaming option. Subscription service providers include Hulu, HBO Max, and Amazon Prime Video. IMDB TV, Pluto, and Vudu are free services that operate off of ad revenue. As part of an initial OTT marketing strategy, consider the target audience. What are the platforms the brand’s target consumer will most likely use?
Once an advertiser has decided on a platform, the company can focus on the creative. Each platform will likely have different ad requirements that must be met before approval. For instance, Amazon Ads has a list of requirements for both display and video ads. A video ad will need to have a frame rate of at least 15 fps and a total duration between 15 seconds and 3 minutes. Some companies allow digital marketers to purchase ad space for a variety of streaming services at once. For instance, ad space purchased for Roku or Chromecast may appear on multiple applications.
OTT meaning marketing strategy will also involve choosing how to access ad space. Marketers can choose between programmatic ad buying and direct ad buying. With the former, automated services enable marketers to bid on ad space. For direct ad buying, ad space is secured directly through the OTT platform. Programmatic ad buying typically involves more price fluctuations. Auction prices can rise and fall at any given moment. Direct buying has more fixed pricing and will usually involve the platform charging a set fee based on preferred ad space and duration of the campaign.
Once ads are approved, the marketer can start tracking. Tagging methods help advertisers confirm that videos and other media have been displayed. Results of the ads help marketers make tweaks before bidding again.
What Is OTT Platform?
The OTT platform meaning refers to the places where online videos are being streamed. An OTT platform means digital videos are shown on an internet-enabled device through a streaming application. Types of devices used to view content on OTT platforms include a smartphone, tablet, laptop, computer, and Smart TV. A television connected to a streaming device or gaming console can also view content through OTT platforms.
OTT platforms have steadily grown in popularity as traditional cable service subscriptions have declined. Cable providers have retained relevancy by providing other services, like the internet. However, cord-cutting has become a trend that many households have decided on. Cord-cutting refers to not using a cable or satellite TV provider for programming. Instead, the household relies exclusively on OTT platforms for any media viewing.
OTT platforms full form mean any service that goes over the top without a cable or satellite connection. Keep in mind that an OTT platform means any digital content provider, including audio options like Spotify. However, video OTT platforms typically have a more significant number of subscribers. YouTube, Vudu, Peacock, Hulu, and Prime Video are just a small sampling of OTT video platforms. Most networks have developed a branch of OTT content as a way to maintain their reach.
Where can you find OTT Apps?
OTT apps can be found easily through search features on internet-enabled devices. For instance, an OTT device such as a Roku or Chromecast will open on a home screen. On the home screen, a variety of content can be accessed, including OTT apps and OTT movies. An applications menu can be found on streaming devices, gaming console menus, and Smart TV home screens. Through the menus, an OTT platform list will likely pop up. Each device may support different applications. For instance, the Amazon OTT platform includes access to Hulu, Paramount Plus, and HBO Max.
Top (OTT platforms) for streaming that includes advertising options are:
- Prime Video
- YouTube Video
- HBO Max
Subscription prices for the preceding platforms vary, but most companies charge customers a fee of $10 or less for ad-supported programming. Subscribers must pay a higher monthly rate to view ad-free. On-demand libraries come standard, but any live programming will have a higher monthly price point.
The best OTT advertising platforms include Hulu, Vimeo, and Amazon. Hulu is considered one of the most coveted OTT ad platforms because of an ad-supported subscriber base of more than $86 million.
Benefits Of OTT Advertising for Marketers and Ad Tech
The benefits of OTT advertising are glaringly apparent. Advertisers are getting their brands shown to viewers that they may never have reached through linear TV commercials. Marketers are given more control over their campaigns and can cut out the middleman to reduce overhead costs. All marketing efforts are delivered directly to the consumer. Digital marketers can build connections with their consumers and strive for an interactive experience. OTT ads can be static or can encourage an immediate call to action. When choosing ads for a brand, big data will be available to support efforts and promise a bigger return on investment.
OTT ads permit delivery based on particular demographics. Ads shown will reach the targeted audience for the brand. Tracking tools allow marketers to manage the reach of ads, including how often they are displayed on platforms. Also, tracking tools will display performance across devices.
The OTT advertising cost can be minimal for newcomers. OTT ads can be worked around any budget and don’t require the brand to enter into a lengthy contract to display ads. Keynes Digital, for instance, offers packages as low as $10,000 for brands to test out the advertising medium and note the benefits. Contact Keynes Digital for OTT marketing examples and to inquire about OTT platform availability.