By: The Xcite Group
In the last 5 years, cable companies have seen millions of loyal customers cutting the cord once and for all. According to MediaPlayNews, 27% of U.S. households cut the cable cord in 2021, following the 15% of households who cut the cord in 2020 amid the pandemic.
In a report done by the Video Advertising Bureau (VAB), 71% of internet users use an OTT service at least once a month, and 11% use OTT devices exclusively. On top of that, an additional 88.7 million households in the United States are using connected TVs.
This shift has not only benefited the consumer but has also opened the door for companies looking to find new and specific audiences. OTT/CTV allows them to capitalize on delivering their message and ads to an ideal audience.
Let’s go over the basics of OTT/CTV and why this strategy will benefit your business.
OTT vs. CTV
What is OTT?
OTT (over-the-top) is when a user is streaming media from the internet on a device. This can be on a phone, tablet, computer, or television. For instance, streaming your favorite Disney show on your tablet before bed is an example of an OTT media service.
What is CTV?
CTV (Connected Television) is under the umbrella of OTT. However, CTV is a connected television rather than a mobile device. CTV will look and feel more like traditional television. Want to binge-watch the hottest new series? Connect to your Hulu App on your Smart TV, and start streaming your episodes – this is an example of CTV.
Benefits of Advertising on OTT/ CTV
OTT/CTV advertising is the best way to directly target your audience, track their data, and reach them in the comfort of their living room. Unlike traditional television advertising, where you purchase a time slot and hope that your ideal audience is watching at that time, OTT and CTV advertising allows you to define your audience and then target them in advance.
For example, you own a kayaking company and you want to target an audience with a certain household income, in 12 specific zip codes, who have interests in camping, outdoor adventure, adventure travel, and have school-aged children – you can do that! You are now spending your advertising dollars serving impressions to your target audience regardless of where, when, and on which device they are using.
OTT/CTV Reporting Metrics
The investment for OTT/CTV is based on a CPM (cost per thousand impressions) model which allows advertisers to reach their target audience at a fraction of the cost of traditional media buys.
OTT/CTV is also an incredible source of data collection. With this marketing lever, you can monitor:
- Video Completion Rate – the percent of viewers who watched to the end.
- Clicks – the number of clicks from your ad to your website.
- Ad delivery by device – which devices your ads were delivered to.
- Performance by the time of day.
- Performance by specific days.
- Ad viewer demographics.
- Reach – the number of unique people that we exposed to your ad.
- Frequency – the average number of times you’re delivering your ad to a given person.
This allows you to see a big and in-depth picture of this marketing lever and how it is affecting your business.
Tips to help you plan an OTT/CTV advertising campaign
Define your audience
What message are you serving? Who is your ideal target audience? When creating your campaign, use your provider’s expertise to make sure you are using all options available to serve your ad impressions to the most relevant audience for the most effective use of your advertising dollars.
Learn your placements options
There are cost differences in the programmatic buy prices between the placements and the expected viewers. Learn about co-viewing pricing and pre-roll placement which may be giving you a lower CPM (cost-per-thousand impressions) but it may not be reaching your audience most cost-effectively.
Expect transparent reporting
Reporting on OTT and CTV campaigns can be very granular. Will you have access to a live dashboard? Daily reporting? Conversion reporting? Know in advance what you will be able to learn from your reporting.
No matter your niche in the outdoor industry, your audience is streaming on OTT/CTV and it is up to you to be prepared to meet your audience where they are spending their time. This is an exciting and new marketing strategy that can be used and afforded by any business big or small.
A Message from the Author
If you find that you need more information on the topic or help setting up an OTT/CTV campaign for your company, always feel free to reach out to Xcite!