As technology continues to develop, it is important to know the impact that it is having on television. Not only in the way we physically view our content, but in the way that we access it. And the way that advertisers reach us has changed with the times as well.
The term “over-the-top” has become popular in recent years. This describes streaming content services such as Netflix, Amazon Prime, Hulu, and others available for a subscription fee. Over-the-top services are generally not free.
Because so many are opting to “cut the cord” and go for a more a la carte option when it comes to their viewing habits, advertisers have had to change their strategies, too. Traditional commercials are still commonplace because cable is still alive in various forms, even across streaming platforms (Sling, Playstation VUE, DirecTV now, etc.).
It is important to know how advertisers are using these OTT platforms to reach their customer base and grow their audience.
OTT services, mentioned above, have risen to incredible heights of popularity in recent years. Netflix went from a mail-order rental service to being arguably the biggest streaming service on the planet. In that time, other services such as Hulu, Amazon Prime, and others have emerged to become popular options in their own right.
This has opened up a new door for advertisers. With the move from cable to streaming services for so many, there was a concern about how to reach that audience with advertisements. But now, commercials and ads are being implemented into those platforms.
Hulu is a great example of OTT advertising. This platform sells ad space and also uses their platform to promote other shows on that platform. It is a great way for OTT advertisers to get commercial airtime in a way that was not available even five years ago.
This allows the advertisers to reach their target audience even when a traditional medium is not being used. It is an extremely effective way to reach target audiences. And best of all for those advertisers, they can tailor ads to specific users.
In the preferences and selections of the user, algorithms are then tailored to the content selected. This is how the OTT advertisers tailor their commercials and ads towards a specific audience. It is a refined method that allows for direct access.
Connected TV Advertising
Another way that advertisers are reaching their audience is through something known as connected TV advertising. Smart televisions are becoming more and more prevalent; they give you access to all of the OTT services that you have come to love without having to buy a separate device to do so.
For connected televisions, access to those OTT apps is included in the television interface. This also means that advertisers can put banner advertisements within those services. It is a somewhat limited way of reaching the audience and definitely does not have much interaction, but it is a great way to ensure that eyeballs are seeing your ad as they peruse for OTT content.