Why More & More Brands Are Tapping Into the Popularity of Streaming Platforms
Not long ago, TV content was the exclusive domain of cable, satellite, and broadcast television. However, with the rise of the internet and streaming platforms, that’s no longer the case. As of June 2024, streaming content — or media, such as videos, music, or live broadcasts, delivered over the internet — accounts for approximately 40% of total TV usage in the United States, surpassing cable and broadcast TV.
Also called Over-The-Top (OTT) services because it goes beyond the traditional to provide content directly to viewers, streaming is now among the most powerful media delivery methods out there, which has made it increasingly useful in the world of marketing. Now offering everything from TV shows and movies to video games and user-generated content, OTT advertising is being used by more and more brands to connect with audiences as they continue to “cut the cord” and transition to digital streaming.
The most popular OTT platforms right now are Subscription Video On Demand (SVOD), such as Netflix or HBO Max, which charge audiences subscription fees to avoid ads during viewing. Other popular OTT platforms include Ad-based Video On Demand (AVOD), like Pluto TV and Tubi, which don’t require subscription or transactional fees but do contain ads sprinkled throughout their content.
Most Popular OTT Streaming Platforms
- Netflix
- Hulu
- HBO Max
- Amazon Prime Video
- YouTube
- Peacock
- Disney Plus
- Paramount+
- Apple TV+
- Twitch
- Tubi
- Pluto TV
- Roku
OTT advertising targets viewers who access content via these streaming services or apps, offering a number of different formats based on when the ads appear. This includes pre-roll ads shown before video content starts, mid-roll ads that play during video content, and post-roll ads shown after the content has ended. OTT commercials typically range from 15 to 30 seconds long, although there are some as short as 5 seconds and some as long as 60+ seconds. OTT display ads, which are banners or overlays that appear on or beside the content during viewing, are also an option.
Advantages of OTT Advertising
As the popularity of streaming increases so does the power of OTT advertising, bringing with it a number of advantages in comparison with other types of advertising. Whether your business and brand should tap into it depends on a number of factors, including your company size, target audience, marketing budget, and so forth. What can OTT add to your marketing strategy? OTT advertising can give you a greater ability to:
1. Reach Modern Audiences
A core tenet of successful marketing is for a brand to share their message with their ideal consumers how, when, and where it will have the most impact. With the boomer generation shrinking in purchasing power and influence, most of today’s consumers are now digitally savvy, and they’re obviously shifting to streaming platforms for their favorite media.
Recent research from Parks Associates — an internationally recognized market research and consulting company — claims that 56 million (46%) of U.S. internet households are “cord cutters.” According to 2020 Amazon internal research, 74% of household heads ages 18–34 and 64% ages 35–54 described their relationship with cable TV as “cord cutter” instead of “cable subscriber.” And those numbers are only going to grow.
This makes OTT advertising a highly effective tool for reaching modern audiences and younger generations, like Gen X, millennials, and Gen Z, who make up the vast majority of the consumer population now and will for the next few decades.
2. Target Specific Audiences
While broadcast and cable TV commercials cast a wider net viewed by many different types of audiences, OTT offers more focused, relevant targeting which leads to more personalized experiences that modern consumers crave and expect.
Utilizing a wide range of internet data, OTT allows brands to improve campaign relevance and effectiveness by placing different types of ads for different audiences depending on their demographics, interests, behaviors, and viewing habits. This means that, during the same movie, TV show, or video game, different audiences may view completely different ads targeting their unique characteristics and needs. Traditional TV and cable advertising can’t compete with the intricate audience data that the internet and streaming services can tap into.
3. Measure, Analyze, & Adapt
The measurability of campaigns and Key Performance Indicators (KPIs) is a significant aspect of marketing as it helps analyze campaign effectiveness, identify areas for improvement, and guide informed decisions about resource allocation. By measuring performance, marketers can optimize strategies to achieve better results and Return On Investment (ROI) in the future. OTT platforms offer inherently better tracking and analytics compared to traditional TV and thus better optimization.
Unlike traditional TV advertising, OTT platforms provide real-time analytics and detailed metrics — including views, interactions, conversions, and more — making it easier to track the performance of ads. OTT advertisers can then more narrowly target their audiences and demographics with advanced data analytics which are typically accessible from the platforms that host OTT advertisements.
4. Command Your Audience’s Attention
It used to be that TV commercial breaks, while annoying, were easily avoidable by switching channels or fast-forwarding through them via digital video recorders (DVRs), such as TiVo. OTT platforms, however, usually feature unskippable ads which viewers can’t fast forward through or even rewind once started. Most viewers are practically forced to watch each complete OTT advertisement, which means higher visibility.
At the same time, repetition of the same ads within the movie or TV is common on streaming platforms, making them more memorable and unavoidable in viewers’ minds and more likely to produce the desired responses.
5. Interact With Your Audience
When it comes to click-through rates, OTT videos deliver some of the best, especially on platforms like YouTube. OTT advertising often allows for interactivity, such as clickable links, surveys, or other in-the-moment actions, which is a huge advantage over broadcast and cable TV advertising. While someone can view a regular TV commercial and maybe keep a product or service in mind next time they’re at the store, interactive OTT can lead a consumer directly toward taking that next step in the sales funnel immediately.
Embedded in or around the streaming movie, TV show, or video game, OTT doesn’t require a viewer to turn to another device to take action, like looking up a product or website; they can do it through the smartphone, tablet, smart TV, or gaming platform they’re already using. This greatly accelerates the customer journey and doesn’t leave time for the advertised product or service to be forgotten.
As Over-The-Top platforms increase in popularity, more and more brands will turn to OTT ads for the many advantages they now offer over traditional broadcast and cable. If you’re curious about integrating OTT into your marketing strategy, reach out to us at M:7 Agency for expert guidance to help take your marketing to the next level.