What is OTT/CTV & why is it valuable to our clients?
Over-the-top (OTT) and connected TV (CTV) have been gaining popularity in recent years, and for good reason. These platforms offer unique benefits to clients that traditional TV advertising simply can't match.
OTT: Over-The-Top
Refers to media services that allow access to TV content delivered via the internet on cross-platform devices like Smart-TVs, laptops, mobile phones, tablets, gaming consoles, and any other gadget that connects to the internet.
CTV: Connected TV
Refers to video content consumed on a TV screen delivered via Internet Connections. CTV is a set of smart devices that lives within the OTT ecosystem.
Examples: Smart TVs, Fire Sticks, Roku Devices, Gaming Consoles (has to be plugged in)
TV Network Apps
New form of digital-only cable alternative which provides access to on-demand and live content delivered over the internet without the traditional network infrastructure. For example, The CW, HBO Max, Freeform and more.
Advertising Video On-Demand Apps (AVOD)
Over-the-top (OTT) AVOD is a type of streaming service where viewers can gain access to ad-supported on-demand content. ESPN+, Pluto TV, Tubi, USA Today and Vevo are just some examples.
Virtual Multi-Channel Video Programming Distributor (VMPDs)
New form of digital-only cable alternative which provides access to on-demand and live content delivered over the internet without the traditional network infrastructure. Think Hulu, Sling, AT&T TV and more.
How can you target your audience?
One of the biggest advantages of OTT and CTV advertising is the ability to target specific audiences. Unlike traditional TV advertising, which relies on broad demographic data to reach viewers, OTT and CTV allow for more precise targeting based on factors such as location, interests and viewing habits. This means that clients can reach the right people with their message, leading to higher engagement and better ROI.
Most CTV Viewers are between 18 – 44 and the number of millennial Connected TV users in the US is expected to hit 62.6 million by 2025. Plus, 87% of US adults own a connected TV and 86% of consumers are willing to see ads on CTV, especially if it’s relevant to them.
How can you measure success?
Another advantage of OTT and CTV advertising is the ability to measure results in real-time. Clients can track metrics such as impressions delivered, Cost Per Completed View (CPCV), Video Completion Rate (VCR), unique device breakdown and view-through conversions.
Impressions delivered represent the number of single ads that were served to a user. To be counted as an impression, a video ad has been placed on a screen to be potentially viewed by the user. This is one of the most important metrics because it means people are seeing your ad.
By tracking these metrics, clients can make data-driven decisions about their advertising strategy. This level of transparency and accountability is not always possible with traditional TV advertising.
Why use OTT/CTV Tactics?
The CTV market is expected to grow 14.4% in 2023 and will grow faster than the overall advertisement market. In 2022, CTV advertising spending in the United States was valued at 21.16 billion.
OTT and CTV advertising also offer clients more flexibility in terms of creative execution. With traditional TV advertising, clients often have to create a single ad that will be shown to a broad audience. With OTT and CTV, clients can create multiple ads that are tailored to specific audiences, which can lead to higher engagement and better results.
What makes it unique?
Running ads on CTV/OTT reaches your customers where they are. CTV now reaches two out of three US viewers and daily CTV usage has grown over 100% since 2017. Other reasons our clients love it:
It’s video, everyone loves video
It reaches Gen Z and Millennials outside of social media
It offers platform and retargeting capabilities with cross-device promotions
Unique audience targeting is available
There’s creative and strategic opportunities
OTT and CTV advertising offer clients unique benefits that traditional TV advertising simply can't match. From targeted advertising to measurable results, these platforms provide a cost-effective and flexible way to reach audiences with the right message. As these platforms continue to grow in popularity, clients who embrace them will be well-positioned to succeed in the ever-changing media landscape.