TV advertising has consistently been one of the most effective and valuable forms of marketing. The ability to reach a wide range of consumers has been an invaluable tool for marketers everywhere. However, with the advent of digital streaming services and consumers cutting the cord by the thousands, advertisers need to consider the value of adding OTT to their media mix for the following reasons.
Reason 1: Missing out on a large piece of your audience
According to a recent study by the Pew Research Center, 44% of Americans do not receive TV via cable or satellite. The young adult age brackets are where we see most of the decline with only 34% of Americans aged 18-29 and 46% of Americans aged 30-49 receiving television via cable or satellite.
Roku holds the largest market share of streaming platforms at 50% and, as of the second quarter of 2021, recorded 55 million monthly active users on its platform. In a recent analysis, 83% Roku’s average campaign reach among Adults 18-49 could not be reached on broadcast or cable networks.
Takeaway: Traditional TV advertising is missing out on a huge percentage of American consumers who only stream content.
Reason 2: Advanced Targeting Capabilities
OTT advertising provides a much higher degree of targeting than traditional TV could ever achieve. Where traditional TV advertising would have to rely on assumptions about consumers based on content and the demographics of their historical viewership, OTT can target exactly who’s watching their content.
Utilizing users’ browser behavior, OTT can leverage actual demographic information to allow for extremely accurate targeting. Advertisers can take advantage of age, gender, race, household income, parental status, and a bevy of other factors to more accurately target their desired consumers. In addition, OTT advertising offers frequency control measures to ensure that advertisers do not serve ads to the same individuals over and over again, something traditional TV ads cannot do.
Takeaway: OTT campaigns can utilize powerful targeting capabilities to deliver impressions to their truly desired audience leading to more efficient and effective ad spend.
Reason 3: Campaign Tracking
OTT advertising offers unmatched trackability in comparison to linear television. With traditional TV, it’s difficult to attribute the direct effects of any campaign. Whereas with OTT, advertisers are able to track exactly how many people are shown a video commercial and later come back to the brand’s website. Combine this information with your website’s conversion rate and advertisers are able to much more accurately judge how effective specific campaigns are at driving traffic.
OTT advertising also offers interactive ads, a feature that has been quickly gaining popularity in recent years. These TV-style ads allow consumers to interact directly with them to find store locations, provide contact information, or answer questions. Advertisers will be able to see the direct results of these ads by seeing exactly how and why consumers are interacting with them.
Takeaway: OTT campaign tracking allows advertisers to have a much better picture of the effectiveness of their campaigns and the ROI on ad spend.
Conclusion: Reach Your Target Audience With OTT
While traditional TV has always been a tried and true form of advertising, the changing landscape of how people access television necessitates change. OTT can help to fill in the gaps that are forming in traditional TV viewership as well as offer a host of advanced features to ensure optimal results.
For more info on how OTT advertising can help your brand, feel free to reach out to us in the form below. We’d love to chat about the different tools Kinetic Sequence can use to elevate your advertising.