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OTT Advertising: What it is and why are brands loving it?

By February 23, 2021Blog

Scam 1992, Paatal Lok, Bandish Bandits, Special Ops, Mirzapur, Made in Heaven, Ludo, AK vs AK- a list of great original Indian content shows & movies streamed on OTT

platforms that people have enjoyed watching.

India is the world’s fastest-growing OTT market. It is expected that by 2024, revenue generated form online video

subscriptions are going to cross 74 billion rupees.

With changing consumer behaviour, going to cinema halls and

traditional cable have become less popular. And there came the OTT platform to the picture.

What is an OTT platform?

OTT stands for over the top. OTT refers to film and television content provided via a high-speed internet connection rather than a cable or satellite provider.

Thus the name, over the top as it goes over the existing media services.

Some OTT platform examples are:

– Amazon’s Prime Video
– Netflix
– SonyLIV
– Voot
– Zee5
– ALTBalaji
– Disney+ Hotstar
– ErosNow

With enhanced networks, better internet connectivity and better smartphones that enables multimedia streaming seamlessly, the presence of Indian subscribers on OTT platforms is increasing by the day. And not just here, but there’s a significant rise in OTT viewers all around the globe.

OTT technology has certainly played a great part in the way people used to watch movies and TV shows at home.

The ongoing COVID-19 pandemic and changing consumer behaviour has fuelled the rise of OTT apps and platforms.

With an increasing number of OTT users and declining cable preference, meant that advertisers had to turn their head towards the OTT platforms to reach their target audience and achieve their marketing goals.

And adhering to the call of the hour, OTT advertising came into light.

What is OTT advertising?

OTT advertising is not much different from running advertisements on TV. The only difference is that, OTT ads are delivered over the internet through streaming video services or devices such as smart or connected TVs (CTV).

This way OTT ads can bypass traditional TV providers that control & regulate media distribution can effectively reach their target audience better.

With continuous improvement in OTT technology that is gradually going to come in some years, marketers are going to be able to reap heavy benefits in the coming years.

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

One main reason why OTT is on the rise is due to the increasing amount of dissatisfied paid TV customers.

With the reasons why people are not enjoying cable or dish network providers any more, viewers want to free themselves of long term costly contracts of their cable providers.

Viewer demands are evolving and OTT has the ability to provide them with what they desire. Not only OTT platforms

and apps provide feasible payment options but also has many different viewing options:

– Streaming boxes (Apple TV, Amazon Fire TV, Android TV, Samsung Allshare Cast)
– Game consoles (Playstation & Xbox)
– HDMI sticks (Chromecast, Roku, Amazon Fire TV Stick)
– Internet-enabled smart blu-ray/DVD players
– Smart TV (through in-TV apps like Netflix, Hulu, Amazon Prime Video or SonyLiv)
– DVR set-top boxes

And this ability to stream OTT content on many devices is the biggest benefit OTT services have to offer.

For the advertiser, the main benefit is that viewers cannot skip video ads, close a window or add some ad blocker to

avoid video ads like they can on YouTube.

So how Are OTT Ads Delivered?

Delivery of OTT ads is determined by how the streaming platform communicates with OTT devices.

The standard delivery process of OTT ads is as follows:

  1. An audience is created:
    First, an OTT audience is created based on the platform’s subscription data. But sometimes, first and third-party data can also be used to target ads based on locations that help advertisers to reach their target audience better.
  1. The campaign is pushed:
    Next up, The OTT platform will match the audience to the specific TV’s subscriber lists on various OTT platforms. The video OTT ads are then sent & downloaded on the OTT platforms after which they are buffered on the OTT the device the viewer is using.
  1. Display video ads via OTT platforms:
    Now depending on which platform it is, OTT devices are communicated with using VAST tags or VPAID tags.
    The VAST tags determine how the ad should be displayed on the screen. They instruct the streaming services on where to insert the ad, where it should show, how long it should be and everything else regarding its visuals.
    Video Player-Ad Interface Definition (VPAID) tags are built on the functional capabilities of VAST tags. Their purpose is to make the ad interactive and add other key metrics.
  1. Reporting:
    At last, after the ads are run, the OTT operator sends back the ad-exposure results after the completion of the OTT campaign and the the platform generates the reports for the advertiser.

Advantages of OTT

OTT is a win-win for both sides.

People love it since they no longer have to pay for cable TV that isn’t a convenient viewing option and frankly doesn’t have great new content to offer always.

Advertisers love it because it has an immense ability to generate business sales through ads.

In addition to this, here are the other benefits advertisers reap that they couldn’t before:

  1. Precise Targeting:
    With inbuilt analytics, OTT platforms enable digital marketers to run engaging ads of shorter duration to the the relevant crowd as they know the location of the audience.
    – Targeting can be based on the device in use, region, type of content, ad preferences, gender, age, browsing patterns and much more.
  1. Dynamic ad insertion:
    Over the top allows you to swap ad creatives in living, or video-on-demand content.
  1. Advanced analytics:
    With precise useful data collected on your audience, OTT marketers can strategically use the intelligence to figure out which ads are working best and which are not. And this can help them optimize future ads accordingly.
  1. Better ROI
    In traditional TV advertising, ad relevance for the large crowd was an issue. In an OTT platform, you can set your target audience and create ads that are highly engaging and effective in getting the conversions. And that’s why over the top platforms can deliver better ROIs.

What the future hold for OTT

As people continue to shift towards online streaming, OTT media

continues to disrupt the industry for good.  OTT advertising has a bright future in India and around the world. With the great original content OTT channels have to offer, combined with the easy viewing options and cost-effective subscription mode compared to cable; people have got their streaming media experiences get much better.

And this growing trend is why TV advertisers are shifting more towards OTT media to run their advertisement and reap maximum benefits.

As we pave the way towards a better future, OTT marketing is going to occupy much larger market share than it already does as of now.

So if you’re looking to run OTT campaigns, now seems like the best time to start.

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