What is OTT Marketing? Beginner’s Guide to Over the Top

Published On November 16th, 2023 5349How To
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The explosive growth of OTT marketing has forever altered the advertising landscape. But what exactly is OTT advertising? Essentially, it refers to the delivery of video content via the web rather than through traditional means or satellite TV providers. 

OTT marketing has grown in popularity in recent years as more individuals choose to “cut the cord” and cancel their cable subscriptions. This has given marketers new options to reach people through data-driven targeting and personalized messaging.

For example, a company might use OTT advertising to target end-viewers who have recently watched a show or movie related to their product or service. Or they might use the location data to deliver ads to viewers in a specific geographical area or surroundings.

The possibilities are actually endless. If you are up for exploring the forefront realm of OTT marketing? If you are tired of the same old advertising techniques and want to learn about a truly revolutionary way to reach your audience, then you have come to the right place.

In this blog post, we are going to take you on a journey through the exciting arena of OTT marketing. We will explore how it works, why brands are investing more in this technology than ever before, and most importantly, how you can leverage it to grow your business.

So, order a cup of coffee, sit back, and get ready to be inspired!

What Is OTT Marketing? 

What Is OTT Marketing

In simple words, OTT marketing is much more than just a new way of watching TV – one can say that it’s a game-changer for marketers. By leveraging data-driven targeting and personalization, companies can reach audiences with precision and relevance like never before. 

Consider the story of a young couple who had just moved to a new city. They were searching for a nearby restaurant on their smartphone, and all of a sudden,  they stumbled upon an ad for a local eatery that had good reviews. Intrigued, they decided to check it out and ended up becoming regular visitors. 

Without OTT marketing, the restaurant might never have reached these customers and missed out on a valuable opportunity to grow their customer base. And with the explosive growth of OTT platforms, the potential for reaching audiences is virtually limitless.

How Does OTT Marketing Work?

Imagine you are a marketer for a new streaming service that just launched. You want to reach as many potential consumers as possible, and you know that your target demographic spends most of their time scrolling. You decide to run an OTT marketing campaign to promote your service.

The first step in the process is to identify the right OTT platform to advertise on. Popular options include Netflix, Hotstar, and Amazon Prime Video, which offer targeted advertising options based on demographics like age, gender, location, and interests.

You can also include a call-to-action (CTA) that encourages end viewers to sign up for a free trial or subscribe to your desired service. Once you have created your ad, you upload it to the OTT platforms you have chosen. Isn’t this quick and easy, till now? 

Once the above step is done, the OTT platforms use sophisticated algorithms to deliver your ad to the right viewers at the right time. For example, if your targeted audience is mostly young adults who enjoy comedies, then the platform may show your ad before a popular comedy series.

As viewers watch your ad, they have the option to click on the CTA and be directed to your website or application. You can also use data analytics to analyze the effectiveness of your ad campaign and make the required adjustments as needed.

Why Brands Are Investing In OTT Video Platforms

what is ott advertising

It is worth mentioning that OTT video platforms have gained immense popularity in this present decade, and that too after the pandemic, more and more consumers are switching from traditional TV in favor of on-demand streaming services. As a result, brands are heavily pouring money into OTT video platforms to reach their target audience where they spend most of their time online.

One of the other reasons brands are investing in OTT video platforms is the ability to deliver personalized and targeted advertising to specific demographics. Also, this gives flexibility for the brands to leverage data analytics and insights to create a compelling OTT marketing strategy. 

Above all, OTT platforms offer a more cost-effective advertising solution, making it an attractive option for brands of all sizes. That’s the reason, investing in this medium has become an utmost necessity for brands looking to stay ahead of the curve in this ever-changing digital era.

What Are The Business Benefits Of OTT Marketing?

In 2024, one can clearly witness and say that OTT marketing has completely transformed the advertising landscape, offering businesses numerous benefits that were not possible with traditional TV advertising. 

These benefits not only make advertising more cost-effective but also enable businesses to reach a highly engaged and specific targeted audience. Keeping this in mind, let’s get to know a few of the common benefits of OTT marketing for businesses of all sizes. 

What Are The Business Benefits Of OTT Marketing

Cost-Effective Advertising Solution

OTT marketing is a cost-effective advertising solution compared to traditional TV advertising. By using OTT platforms, businesses can save a ton of money on production costs and reach a more actionable and engaged audience. 

Apart from this, OTT marketing allows businesses to precisely track their return on investment (ROI) than other forms of advertising, particularly traditional, thereby making it easier to optimize their OTT marketing strategy for maximum results or profitability.

Flexibility And Customization

OTT marketing provides businesses with a whole lot of customization options that other forms of advertising. With over the top marketing, businesses can choose which OTT platforms to advertise on, which demographics to target, and what type of content to promote. 

Businesses can also adjust their campaigns in real time based on the received data insights. Furthermore, businesses can set their budget, choose the frequency of their ads, and even personalize their messaging to create an impactful ad experience for their end-users.

Data-Driven Insights

OTT marketing offers businesses access to valuable data insights that can help them optimize their advertising strategy to the next level. Through deep data insights, businesses can track some of the key metrics such as impressions, click-through rates, and conversions.

This provides them with a deeper understanding of their audience and what type of content goes well with them. With this information, businesses can build more successful marketing efforts that yield a far better return on their deployed money. 

Ad-blocker Resistance

Ad-blockers have become increasingly popular among people, making it difficult for businesses to reach their audience through traditional display advertising. However, OTT marketing offers a solution to this challenge by allowing businesses to deliver their ads directly to their audience without the interference of ad-blockers. 

With OTT marketing, businesses can rest assured that their message will be seen by their target audience, providing them with a more effective advertising solution. Also, the ad-blocker resistance of OTT advertising ensures that businesses can maximize their reach, leading to more successful conversions and sales.

How To Make Money With An Ad-Based OTT Platform?

Ad-based OTT platforms have become a popular way for content creators and business owners to monetize their content. With the rise of on-demand video streaming, the demand for ad-based OTT platforms has increased drastically. 

However, figuring out how to make money with an ad-based OTT platform can be a tedious process. That’s the reason we have come up with this section; here, we will be listing out some of the ways to generate revenue with an ad-based OTT platform.

How To Make Money With An Ad-Based OTT Platform

Advertisements VOD

VOD advertisements are one of the most popular ways to generate revenue. By displaying ads before, during, or after the video content, platform owners can earn handsome revenue from ad views or clicks. However, it is essential to find the right balance between ad frequency and user experience so that viewers don’t feel annoyed. 

Subscription VOD

Another way to generate revenue with an ad-based OTT platform is by offering a subscription VOD model. Viewers can pay a monthly or yearly fee to access exclusive content or features, like ad-free viewing, early access to new content, or behind-the-scenes footage.

Sponsorship Deals

Partnering with brands for sponsored content can also generate revenue for ad-based OTT platforms. This involves creating engaging content that aligns well with the brand’s values and promoting it to the audience who are part of the platform. 

Product Placement

Product placement is yet another effective way to monetize content on any ad-based OTT platform. Brands pay to have their products or services featured in the video content, subtly promoting their offerings to the viewers and making money out of it. 

Note – Overall, ad-based OTT platforms offer a number of opportunities to monetize content and generate revenue. By leveraging a combination of strategies, platform owners can maximize their earning potential and achieve long-term success.

Summing Up 

Overall, it seems that OTT advertising presents a unique opportunity for brands to connect with their audience in a more personalized and effective way. By making use of data and targeting capabilities, brands can ensure that their ads are reaching the right people at the right time. 

However, there are also challenges to consider, such as the fragmentation of the streaming market and the need for effective measurement and attribution. All in all, we can conclude that the story of OTT marketing is one of innovation and opportunity for content owners. 

As OTT streaming services become even more ubiquitous, it is likely that we will see even more growth in this space in the coming years. Also, brands that can handle the obstacles and embrace the possibilities of OTT advertising will be well-positioned to flourish in the digital age.

Vijay Amirtham

Blogger & OTT Expert at VPlayed. Interested in digging deep into video streaming media tools, and Love to blog, discuss and share views on the legal OTT app development' & latest technologies tips, and tricks. He's also passionate about photography loves to capture the pure essence of life.

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