When it comes to making the right decision on how to buy OTT advertising, you need a resource that can help you find all of your options.
The first thing that most marketers do when trying to figure out how to buy OTT advertising turns to Google. This is not necessarily a bad idea, but there are other places where you could be looking.
To make sure that you’re getting the best deal possible for your ad spend, take advantage of our buyer’s guide and learn about all of the different types of ads available for Over-the-top advertising platforms. We’ll tell you everything about buying over-the-top (OTT) ad update in 2021 so that you don’t overspend on your campaign!
- 1 What is OTT advertising and how does it work?
- 2 How to buy the right type of OTT ads for your business?
- 3 The benefits of buying OTT advertising
- 4 Step-by-step guide on how to buy OTT ads
- 5 FAQs about how to buy OTT ads
What is OTT advertising and how does it work?
OTT advertising is one of the main drivers of audience consumption. OTT refers to “over-the-top” content, which is entertainment streamed directly to a viewer’s TV set or computer monitor via the internet, rather than through traditional cable/satellite subscriptions.
With an increasing number of people watching videos on mobile devices, advertisers are looking for new ways to reach their audiences, and OTT advertising is one of the most effective.
OTT ad spots are shown directly on a streaming service’s traditional, linear video content as well as on-demand content — they can even affect an entire season or series itself — and targeted ads can be shown in every episode of a season, with different ads shown in every episode.
How to buy the right type of OTT ads for your business?
When buying OTT ads, brands should consider such factors as:
- Frequency caps and traffic thresholds
- Video ad format (pre-roll, mid-roll, or post-roll)
- Brand safety
- Size of the audience to which ads are shown
- Length of the ad spot
- Location of the ad on a screen (i.e., beginning, middle, or end of the video)
- Ad targeting (age, gender, geography, device type, and others)
- Geofencing (where ads are targeted based on location)
OTT advertisers can offer spots on either a CPM (cost per thousand impressions) or CPC (cost per click) basis. They are typically purchased by the advertiser’s direct sales force, although some digital agencies or ad networks have an established relationship with OTT advertising companies to place ads on behalf of their clients.
The benefits of buying OTT advertising
OTT advertising is so valuable to brands because it allows them to increase awareness and build their audiences on-demand. Unlike traditional TV, where brands must work with large agencies and ad networks to run campaigns across multiple channels, OTT gives advertisers direct access to digital video viewers.
Plus, since OTT ads are served only when the program is being played back, they can be targeted and customized to the most relevant audiences.
Anyone who’s ever tried to navigate through a commercial break on their DVR or skip an ad on Netflix will appreciate the effectiveness of OTT advertising. With this format, viewers don’t have control over when ads appear — hence why they’re called “unskippable” — and when they’re woven into the fabric of a show, they become part of the entertainment experience. In fact, it’s been proven that ads shown in this format are actually more effective at driving brand recall.
This is why many brands have begun shifting their TV ad budgets to OTT. Our data shows that 48% of marketers intend to increase their budgets for OTT advertising in the next 12 months, and more than 22% of marketers already plan to spend more than 50% of their total ad budget on OTT.
Step-by-step guide on how to buy OTT ads
1. Define the goal for your audience
As with all marketing campaigns, you need to define what it is that you hope to accomplish. What are you trying to achieve by advertising on OTT? Are you looking for better brand awareness? A boost in engagement? Maybe website visits? Or do you simply want more people to sign up for your email list?
2. Define the target audience for your OTT ad campaign
Once you know what you want to achieve, it’s time to figure out who you need to reach. Since there’s no limit on how many people can watch a show in OTT, it’s important to understand that this is no longer an audience of “everyone.”
In fact, most research shows that subscriptions for OTT services have been steady over the years. In 2017, about 54% of U.S adults had at least one subscription service.
3. Determine the platforms and the content you want your ads to run with
There are several OTT platforms available. Your decision will be largely driven by what you’re trying to accomplish and who your target audience is. Are they mostly young, tech-savvy millennials? Then YouTube or Vimeo might work well for you. Are they heavy users of Netflix, Hulu, or Amazon? Perhaps Roku would be a better fit. No matter where you choose, you’ll definitely want to run your ads alongside content that is complementary and will help drive viewers to take action.
4. Set your budget
This should closely align with the goals of your OTT ad campaign. For example, if awareness is your goal, then a lower budget will likely get you better results. However, if conversions are what you’re after, then the sky is really the limit.
One important thing to consider when setting your budget is that OTT ads are considered “pass-through” advertising (or sponsorship), meaning that they’re often charged on a CPM basis (cost per 1,000 impressions).
5. Connect with the right audience and the right influencers
During any marketing campaign, it’s important to reach your consumers where they’re already spending their time. Social media is currently where most people are turning for information about products and services. Using these platforms as a way to connect with those who may be interested in your product or service is vital.
Additionally, it’s important to have influencers on board who can help to promote your OTT ad campaign. This will not only give you more exposure but also increase the engagement that you see with the ads themselves. And don’t forget about paid social (i.e., paid promotion of your OTT ad on social media). This can be a great way to get your message in front of new people as well as those who are already familiar with your brand.
6. Measure and iterate
It’s also important to follow up on the results of your campaign. Tracking everything from click-through rates, engagement levels, and conversion rates will help you to learn what’s working and what isn’t. Use this information to revise your campaign the next time you run one.
OTT ad campaigns can be a productive way for brands to connect with new consumers and ultimately achieve their marketing goals. Follow these steps closely, and your OTT ads are sure to get results!
FAQs about how to buy OTT ads
How much does OTT advertising cost?
OTT advertising costs vary widely depending on the target audience, platforms, and types of advertisements. If you’re interested in OTT ads, a good place to start is by taking a look at brand awareness ads that run on YouTube and Twitch.
Typically, these will cost small businesses around $20 per thousand viewers (CPM). However, when it comes to OTT ads, it can definitely pay to go big. According to Adweek, “OTT video advertising revenue is projected to grow 20 percent annually over the next four years, hitting $20.28 billion in 2020.”
Do OTT platforms have ads?
Yes and no. Some OTT platforms do run ads, and others don’t (yet). For example, both Amazon Prime Video and Netflix have decided to forego traditional ads in favor of passing that money back to their customers. Hulu also offers an ad-free experience for $11.99 per month rather than the $7.99
Where can I view OTT ads?
OTT ads are available via a variety of platforms, including DIRECTV NOW, fuboTV, and Hulu’s live TV service. Additionally, some local broadcasters offer their own OTT apps that include ads. They also often have mobile apps with advertising included.
When it comes to advertising for your business, you want the most bang for your buck. This is why many companies are looking into new digital marketing options like OttAds. If you’re interested in learning more about how this service can help grow your company’s success and ROI, contact our team today! They would be happy to answer any questions or concerns that you may have so don’t hesitate to reach out – we look forward to hearing from you soon.