Tune in to Over-The-Top (OTT) TV
The consumer has spoken. In 2018, 90% of Americans age 25-34 streamed content — almost 2 billion hours per week — on connected television (CTV) devices. CTV devices are just one of the many forms of OTT TV. So, what are OTT and CTV? And why should you consider them an integral part of your digital strategy starting now? Read on.
OTT Services: The “New TV”
OTT refers to video content that’s delivered via the internet and goes “over the top” of (or circumvents) the more traditional means of video delivery (like satellite or cable). Some call it the “new TV.”
OTT offers convenient, personalized content to the ever-growing population of consumers that desires freedom of choice. The most common forms of OTT include subscription streaming services (Netflix, Hulu, Amazon Prime video) and CTV devices. These services can be streamed on CTVs (most often downloaded as apps via the TV app store), on mobile devices and tablets.
Fun Fact! CTV-specific devices like Roku have been around since 2008, but have gained a lot of traction after large companies like Amazon made their own (the Fire TV Stick).
CTV Devices Deliver Choice Content
Connected TV is any television set up (whether wireless or through an Ethernet connection) that has internet access. CTV combines digital flexibility with the premium content of television. As a subset of OTT, it has several subsets itself, some of which include:
- Smart TVs
- Have a built-in internet connection and don’t need additional devices to stream. Major players include Samsung and LG.
- Connected Devices
- OTT boxes or dongles plug into the TV and connect to the internet to enable apps that stream video content. These devices work whether the TV is “smart” or not. Major players include Apple TV, Roku and the Amazon Fire TV Stick.
- Game Consoles
- Act as CTV devices since most have app stores so users can download apps to their TV and stream content. Major players include Xbox and PlayStation.
“This is an ideal opportunity for advertisers without a budget to advertise on live TV. And for those who already advertise live, it’s an opportunity to amplify the content they publish by spreading their programming across connected devices. OTT advertising helps to maximize their brand’s reach.”
–Josh Dahmes, VP of Digital Marketing
Advertising in OTT – Opportunity Awaits
As consumers continue to mass adopt OTT, there’s an emerging and uncommon opportunity to advertise with minimal competition (translated: low cost and over-the-top exposure). Blazing the trail with the right strategy could prove worthwhile (likely even highly profitable) for your organization. Here’s why:
- OTT is in High Demand
- It’s expected that over 35 million viewers will watch live TV through a streaming service by 2022. Yet, right now, only 15% of advertisers consistently include OTT in their media strategy.
- OTT Advertising is Highly Targeted
- OTT allows you to target the exact audience for you with personalized, relevant and timely content, using geolocation, demographic data and device information, to the household level.
- OTT Viewers are Highly Engaged
- CTV returns the highest completed view rate of any video format. (Viewers complete 95% of video ads.) Why? They are committed to the content they have chosen and don’t typically have the option to skip the ad. More time spent in front of your message naturally leads to a substantial increase in brand awareness.