What is Over-the-top (OTT) Television Advertising? Part 1

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Today, a growing number of businesses have discovered benefits in utilizing Over-the-top (“OTT”) television advertising. This innovative medium offers a way for advertisers to direct content to interested recipients within specific markets.

A New Era of OTT Television Advertising

The rise of OTT promises to significantly disrupt traditional broadcast television advertising in Pittsburgh. Essentially, this new technology involves the provision of streamed “on-demand” content to television viewers. While broadcast networks and cable services typically maintain a predetermined schedule for programming, streaming services allow viewers to watch the content they prefer on their own timetables.

Currently, the category of “OTT” services covers six basic types of on-demand devices. These include a smart TV (e.g. Netflix and Hulu); smart DVD and Blu-ray players; gaming consoles; DVR set-top boxes; streaming boxes (e.g. Apple TV); and HDMI boxes or sticks (e.g. Roku and Chromecast). Analysts expect these innovative technologies to witness significant growth in popularity during the next few years. (1)

Who Watches OTT Advertising in Pittsburgh?

Television advertising in Pittsburgh reflects some important demographic divisions. By and large, the viewers who have adopted streamed content fall within two main segments of the population: the Millennial generation and Gen Z.(2) A small yet gradually increasing number of seniors have begun viewing OTT television advertising.

These youthful audiences tend to watch OTT content in family groups for specific protracted periods of time. They became accustomed to requesting digital content on computers as children, and as adults largely reject predetermined programming schedules. This audience differs from online web video viewers, who tend to browse content at random as individuals. (2) Instead, OTT television watching often centers around specific content selections viewed in sequence, such as the “binge-watching” of popular streamed television series.

A Bright Future For OTT Technologies

Recent research forecasts a bright future for OTT technologies. The number of people regularly watching streaming television content should surpass 200 million in the United States alone by 2019.(3) Clearly, this medium has achieved widespread popularity.

One aspect of this technology which excites advertising experts relates to the degree of customization possible when audiences watch streamed content. Many companies now send ads to viewers and re-target them again on other digital platforms. The development of sophisticated information-rich customer databases allows marketers to identify groups of potentially interested customers for some products. Streamed services frequently permit innovative advertising presentations, such as content programming with a single sponsor and the use of significantly shorter ad spots.(3) (These innovations help companies on a tight budget afford OTT advertising in Pittsburgh.)

Recent Statistics About Television Advertising

One impressive statistic relating to the OTT marketplace captures the attention of many companies placing commercials. By 2020, analysts predict OTT ad buys will account for nearly 50% of the total $85 billion spent on TV advertising!(4) This remarkable growth suggests businesses anticipate results in this new market.

The availability of OTT ads offers a viable way for many comparatively young businesses to enhance name recognition in specific local markets. Decades ago, when companies of all sizes had to compete for space on broadcast networks, many firms could not afford to place ads during Prime Time. The rise of OTT has helped spark new, healthy competition in the TV advertising marketplace.

OTT Obstacles

Of course, companies creating OTT advertising still face challenges. This technology has evolved rapidly. Yet advertisers cannot always customize ads and capture uniform result “milestones” as effectively as they would prefer.(4)

For example, the Nielsen Ratings system does not yet measure OTT content views.(4) Will measurements improve soon? Although likely, these developments remain ongoing.

Advertise on OTT Now

Your enterprise currently enjoys an excellent opportunity to use OTT advertising to penetrate the Pittsburgh regional marketplace (or other local markets). This increasingly popular technology offers an exceedingly cost-effective way to reach individually identified customers and demographic consumer groups. Harness the power of Over-the-top television ads to ensure your firm utilizes its marketing budget as effectively as possible! Contact Brian Sorce at dDaniel Advertising for assistance or visit ddanieladvertising.com for more info.

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Helpful Resources:

  1. https://clearcode.cc/blog/ott-advertising/
  2. https://strategus.com/2018/02/whos-watching-
  3. https://extremereach.com/blog/three-signs-that-ott-advertising-is-growing-up/
  4. https://www.adweek.com/tv-video/how-data-will-come-into-play-in-ott-advertising/