The Rise of OTT Video Advertising

In the ever-evolving landscape of advertising, Over-the-Top (OTT) video advertising has emerged as a dynamic and highly effective method for reaching audiences in the digital age.

So, what exactly is OTT, and why should businesses consider it over traditional over-the-air commercials?

what is ott video advertising

Unlocking OTT: Breaking Down the Basics

OTT, or Over-the-Top, refers to the delivery of video content over the internet, bypassing traditional cable or satellite providers.

This includes streaming services like Netflix, Hulu, Amazon Prime, and Roku.

When discussing OTT video advertising, we explore commercials and ads sent via streaming platforms, providing a distinctive and personalized viewer experience.

Advantages Over Traditional Over-the-Air Commercials

  • Targeted Reach: OTT advertising stands out for its precision in targeting specific demographics, encompassing factors such as interests, behaviors, demographics, and location. Traditional over-the-air commercials cast a wide net, hoping to catch the right audience. OTT, on the other hand, leverages user data to deliver ads to individuals based on their preferences, behavior, and interests.
  • Interactive Engagement: OTT ads allow for interactive elements, providing viewers with the opportunity to engage directly with the content. Whether it's clicking on a link, filling out a form, or making a purchase, this level of engagement surpasses the passive nature of traditional commercials.
  • Measurable Results: Unlike the ambiguous effectiveness of traditional advertising, OTT provides detailed analytics that offer insights into viewer behavior. Advertisers can track metrics such as impressions, clicks, and conversions, allowing for data-driven adjustments to campaigns in real-time.
  • Cost-Effectiveness and ROI: OTT advertising is cost-effective, allowing advertisers to allocate budgets more efficiently by reaching specific, engaged audiences instead of relying on broader, less targeted approaches used in traditional TV advertising.

Prominent Media Metrics Are Evolving for OTTs

Effective April 6, 2023, Nielsen Market Ratings provides uniform reporting for OTT streaming applications on local television, accessible through connected TV devices, applications, or websites and viewed on the television screen.

For those unfamiliar with Nielsen, it is a global measurement and data analytics company known for regularly publishing reports and insights on media consumption trends, now extending to include information about OTTs.

Demographics of OTT Consumers

OTT advertising isn’t just a passing trend; it’s a shift in how audiences consume content.

The demographic of OTT viewers tends to be tech-savvy individuals who prefer on-demand, personalized content.

This includes millennials and younger generations who have embraced streaming as a primary source of entertainment.

However, as technology becomes more integrated into daily life, the OTT audience is expanding to include a broader age range.

Video Examples Used for OTT Advertising

Costs To Distribute OTT Advertisements

OTT ads range from $25 to $75 per CPM (cost per 1000 impressions/TV spots) ensuring charges only when someone views your ad. More popular streaming services may charge higher rates. For instance, Hulu charges $50–$75 CPM.

In contrast, traditional TV advertising can fluctuate between $40 and $200 CPM rates or even higher depending on demand. Unlike OTT ads, traditional TV ads cannot track the audience and how they engage with your ad.

video production steps guide

Your Partner in Crafting Compelling OTT Videos

In San Diego’s dynamic creative scene, Redideo Studio leads in video production, excelling in crafting visually compelling content tailored for OTT advertising.

Whether it’s conceptualization or distribution, this creative agency ensures that your message not only reaches the intended audience but also makes a lasting impact.

Don’t wait! Contact us today to elevate your brand in the digital era.

Brand Royalty: Exciting Collaborations
Voices of Delight: Client Testimonials
valerie cortez digital marketing review

Valerie Cortez

5 star reviews

“Daniel has done a great job with helping the brand I manage elevate our social media advertisements. He is a very skilled videographer and editor and an excellent source of information and advice when it comes to digital marketing. I highly recommend him and will continue to work with him in the future! 🙂 Thanks Daniel!”

kevin zurek video review

Kevin Zurek

5 star reviews

“Daniel is THE MAN! He helped me produce a couple of videos for my clients. He gave great direction, is VERY creative, great with people and got the project done on time. I highly recommend Redideo Studio for your next project!”

amanda allen video production review

Amanda Allen

5 star reviews

“Super fast turn around. Very professional and well done. The client only requested one small revision, which was turned around in less than 24 hours. The shoot was on a Monday and we had approved creative ready for launch by Wednesday. One of our local radio DJ’s needed help shooting a video for social for an endorsement client. The client was extremely happy with the outcome. Highly recommend. Will be using again. Thanks Daniel!”