The manner in which we consume television has changed over the past decades. Some have said that TV is finished. All things considered, TV isn’t finished yet rather shifting in its propensities. Long gone are the days of gathering around the single television with portable dinners. Thanks to the age of the internet and cord-cutters, we have access to the new age of technology and television that is OTT, internet advertising, and content marketing.

Modern viewers consume content in new ways and areas since now they have a connection with the Internet. This brought forth “Progressed TV” a new, ad-supported,  way to watch and deliver content belonging in the 21st century. These new digital marketing techniques incorporate the following: Connected TV, Addressable, and Over the top. The terms are used regularly and interchangeably, yet they have their differences:

Connected TV – The word “connected” is referring to an internet connection and this term can be applied to any TV set that is by any means connected to the web. Connected TV is also enabled by gaming consoles, PlayStation, Xbox, online TV streaming services, and cable providers.

Addressable TV – This method delivers specific content to a specific audience. Think of it as content with the “address” of a specific audience on it.

Over The Top (OTT) –  This method allows advertisers to deliver content to those people who do not want to pay for cable. This form of connection is currently in demand and offers many advantages to both advertisers and viewers alike.  

What is OTT Advertising?

Simply put, OTT advertising is the video, graphical asset, or content shown to an individual as they watch the content, before it starts, or even after the content ends. The information on the viewer and even the type of content being watched allows advertising campaigns to be extremely targeted and therefore hold a high engagement rate. 

Thanks to OTT, advertisers can grow their audience at rates previously unavailable. According to a report by adweek.com, spending on OTT online ads is expected to rise anywhere from 45-60%. The time to venture into OTT content and capture a return on investment has never been better.

How is Over the Top Advertising Delivered?

Delivery of advertisements varies but relies upon streaming stages and how they associate with OTT features. For instance, an advertisement could be delivered through the Video Ad Serving Template (VAST). Delivery is performed by means of server-side  (SSA) or customer side (CSAI). The whole interaction looks something like this: 

1. First, a target group is made. This group can be generated with any data available from the service. Using the data from the service will allow an advertiser to be more targeted and effective with their advertisements.

2. The campaign is launched. The OTT platform delivers your content to the group which was previously selected.

3. Your ads will be displayed. While the audience watches the advertisements, the ad servers will receive metrics about these advertisements and their performance. 

4. Finally, the data and metrics collected in step 3 will be shared with the advertiser and indicate whether the campaign was successful or not.

5. Make adjustments to the campaign or target group and repeat as necessary.

Why is OTT Popular Now and How Does it Impact OTT Ads?

A factor in the rise of OTT popularity is the increasing number of customers unhappy with their current TV solution. While there are numerous reasons why individuals are not content with the link or dish network supplier, there is an ever-increasing number of choices opening up for those looking to replace traditional TV with OTT. 

For the purchaser, probably the greatest advantage of OTT is having the option to stream content over numerous gadgets. OTT applications let you view content on your PC, tablet, smartTV, or even a gaming console. There have been studies done to find which of these devices viewers prefer to utilize and figuring out which type(s) of advertisements are most appropriate for which devices. 

For the promoter, the greatest advantage is that individuals who are watching content on OTT platforms can collect valuable data from advertisements that weren’t possible with traditional tv. Popular metrics for traditional online advertising such as click-through rates are invalid oftentimes in OTT. While the viewer might not be able to click on their television screen like on a computer, video completion rates are astronomical on OTT platforms ensuring that the message of the advertiser is passed along. 

Benefits of Over the Top Advertising

OTT is a great boon to everybody involved. Customers who pay less for more content and experience more engaging ads. Advertisers love it because they can target their merchandise more effectively and lower their advertising costs. In addition to these great things, OTT advertising those this as well: 

Targeting – OTT enables shorter but more relevant ads because it knows where the audience is located geographically. OTT platforms can break the audience into segments for better metrics, and they can tell you which device(s) the viewers are using most often to access your content.   

Dynamic ad insertion – This lets you interchange ad creatives in linear, live, or video-on-demand content.

Advanced analytics – With all of the data obtained about your audience, you can use it to find which ads are working for you and which ones are not to optimize future ads with the insights you obtained.

Challenges of OTT Advertising

We have established that advertising through OTT is a great tool, however, there are some aspects that require constant work and adjustments to ensure their long-term success and functionality. 

Management and measurability:  If you wish to advertise through the larger cable OTT streaming sites, close management of your ad as well as any detailed metrics which the ad generates will be harder to access. In contrast, if you choose an independent OTT provider, you might have more access to the day-to-day.

Regulations: The lack of regulation in OTT advertising leaves room for opportunity for some or much to be desired for others. While not rampant, Ad fraud is still present in OTT which could pose potential threats to the consumers and advertisers.

Functionality: A lot of OTT platforms or devices do not have the same functionalities that web browsers do, for example, if you run an ad on an internet browser, you can obtain all kinds of information from the tracking pixel or cookie that will give you the insights considering conversion rate of a particular source. This is not possible right now on some OTT devices. VPAID was introduced to enhance ad experiences and provide ad performance insights. We should point out here, that due to the restrictions of OTT platforms, often you cannot implement executable ad units.

The Future of OTT Advertising.

OTT ads have a brilliant future regardless of any short-term challenges present. Most OTT platforms generate the majority of their income from subscriptions the clients pay for. This benefits anyone who wishes to advertise in OTT thanks to how closely OTT providers know their clients.  

Soon we will see advertisements on almost every screen and piece of content watched. This will permit brands to benefit from their advertisement crusades by focusing only on the clients interested in their product. The visibility will increase in light of the fact that the content and advertisements offered to these viewers will become increasingly more qualified towards them and their preferences.

Even though you can do so much with OTT, it still offers a wide cluster of productive outcomes, it will give much more later on since innovation keeps on advancing. OTT will remain improving and promote the advertising sector which will be a much bigger piece of the overall industry later on. Harnessing this opportunity and utilizing it to its fullest potential will turn into a need for some organizations since there’s nothing more captivating and vivid for clients.

What’s next for you and OTT advertising.

Thanks to independent OTT platforms like Nunchee.com, you could launch your own OTT service today and begin selling ad space to whomever wishes. Alternatively, you may find current preexisting channels with which you might be able to advertise. Regardless, Nunchee.com supports VAST tags or google ads (Google IMA for video ads), thanks to an easy-to-use guide already created, implementing ads will be close to instantaneous.  

About us:

Nunchee.com is an OTT white-label streaming service committed to providing the best in OTT live streaming. Nunchee empowers Media Creators to launch their video website and branded apps instantly while including all tools to manage their service. You can launch your service in as little as 24 hours. Clients of Nunchee.com include The British Basketball League, ATA Football, Telefonica, and Fanatiz among many others.