The Rise of OTT: Why Your Marketing Mix Needs It

Over-the-top (OTT) video streaming has exploded in popularity, transforming how we consume content. It’s no longer just for catching up on missed episodes; it’s a powerful force reshaping the advertising landscape. For digital marketing managers and CMOs, understanding and leveraging OTT advertising is becoming less of an option and more of a necessity.

At Phrasing, we’ve witnessed firsthand the significant growth in both the capabilities and performance of OTT advertising since 2023. It’s not just about reaching a large audience; it’s about reaching the right audience with targeted, engaging ads. This article will dive into the why and how of OTT advertising, providing you with the knowledge and insights to confidently integrate it into your marketing mix. We’ll explore its benefits, strategies, and best practices, all while keeping it jargon-free and focused on delivering tangible results – because that’s the Phrasing way.

The OTT Advantage: Why It’s a Game-Changer

OTT advertising offers a compelling alternative to traditional television advertising, providing a range of benefits that are particularly attractive to digital marketing managers and CMOs. Here are some of the key advantages:

  • Targeted Reach: Unlike traditional TV, which often casts a wide net, OTT allows for precise targeting based on demographics, interests, and viewing behavior. This means your ads are more likely to reach the people who are most likely to be interested in your product or service, maximizing your ROI.
  • Cost-Effectiveness: OTT advertising can be more cost-effective than traditional TV, especially for reaching specific demographics. You can often buy ads programmatically, allowing for greater flexibility and control over your budget.
  • Measurability: One of the biggest advantages of OTT is its measurability. You can track key metrics like impressions, completion rates, and click-through rates, providing valuable insights into the effectiveness of your campaigns. This data allows for optimization and refinement, ensuring you’re getting the most out of your ad spend.
  • Engaging Formats: OTT offers a variety of engaging ad formats, including pre-roll, mid-roll, and post-roll video ads. These formats can be highly effective in capturing attention and driving engagement, especially when combined with high-quality content.
  • Brand Safety: OTT platforms typically offer a brand-safe environment, ensuring your ads are displayed alongside premium content. This helps to protect your brand’s reputation and avoid the risks associated with advertising on user-generated content platforms.

These benefits make OTT an increasingly essential component of any modern marketing mix, offering a powerful way to reach and engage target audiences in a dynamic and evolving media landscape.

OTT Targeting: Precision is Paramount

In the realm of OTT advertising, targeting isn’t just important; it’s paramount. The ability to reach specific audiences with laser-like precision is what truly sets OTT apart from traditional broadcast, offering a significant advantage for maximizing ROI. Let’s delve into the nuances of OTT targeting strategies:

  • First-Party Data and LiveRamp: Your first-party data – information you’ve collected directly from your customers – is a goldmine for effective targeting. By leveraging a Customer Data Platform (CDP) like LiveRamp, you can onboard and activate this data within your OTT campaigns. This allows you to reach your existing customers with relevant offers, personalize messaging based on their past interactions, and even create lookalike audiences to expand your reach to new, similar prospects. This approach ensures your OTT efforts are deeply aligned with your overall customer relationship management (CRM) strategy.
  • Third-Party Data Enrichment: To further enhance your targeting capabilities, you can layer in valuable third-party data. This data, obtained from external sources, provides insights into demographics, interests, purchase behavior, and more. Consider partnering with reputable third-party data providers to enrich your audience profiles and refine your targeting parameters. Some key players in this space include:
    • Alliant: Known for its consumer data and audience targeting solutions.
    • Experian: Offers a wide range of data and analytics services, including consumer demographics and segmentation.
    • Datatonics: Provides data solutions for audience targeting and campaign optimization.
    • Stirista: Specializes in email marketing data and audience targeting.

By strategically combining first-party data through platforms like LiveRamp with the power of third-party data, you can create highly targeted OTT campaigns that reach the most relevant audience segments. This precision not only improves efficiency but also enhances the overall customer experience by delivering ads that are more likely to be welcomed and engaging.

OTT Strategies: Your Roadmap to Results

Now that we’ve established the power of OTT and the precision of its targeting, let’s map out the strategies that will maximize your investment and drive tangible results. Consider this your roadmap to OTT success:

  • Content That Captivates: In the dynamic landscape of OTT, compelling content isn’t a luxury; it’s a necessity. Your ads must command attention, boast visual appeal, and maintain contextual relevance. Tailor your creative to resonate with the nuances of each platform and audience, transforming interruptions into value-added experiences.
  • Frequency and Reach: The Art of Engagement: Striking the ideal balance between frequency and reach is crucial. Your goal is to maximize exposure without overexposure. A well-executed strategy achieves that sweet spot, ensuring your message reaches a significant portion of your target audience without inducing ad fatigue.
  • Cross-Channel Synergy: Amplifying Impact: OTT thrives in collaboration with other channels. Integrate your OTT campaigns seamlessly with social media, search, email, and other digital touchpoints to orchestrate a cohesive and high-impact marketing symphony. This integrated approach amplifies your message and reinforces your brand narrative across every stage of the customer journey.
  • Data-Driven Optimization: The Engine of Success: In the ever-evolving world of OTT, data is your most valuable asset. Meticulously monitor key performance indicators (KPIs) such as completion rates, click-through rates, and conversions. Harness the power of the robust reporting tools within your Demand-Side Platform (DSP) to extract actionable insights. Remember, premier DSPs like Madhive offer the capability to export this wealth of data into your own analytics instance, providing a comprehensive and transparent view of your campaign performance. This granular level of data empowers you to continuously optimize your strategy, ensuring your OTT efforts deliver progressively stronger results.

By embracing these strategies, you’ll navigate the OTT landscape with confidence and unlock its full potential to fuel significant growth for your brand.

watching ott television

OTT Placements: Where Your Ads Take Center Stage

A key advantage of OTT advertising lies in its diverse placement options. Unlike traditional TV, confined to broadcast channels, OTT offers a rich tapestry of environments for your ads to shine. Understanding these placements is crucial for maximizing reach and engagement, ensuring your message resonates with the right audience in the right context.

  • Streaming Services: At the heart of OTT are the streaming services themselves. This encompasses both subscription-based video on demand (SVOD) platforms like Netflix, Hulu, and Disney+, and ad-supported video on demand (AVOD) services such as Peacock, Tubi, and Crackle. While SVOD platforms initially leaned towards limited or no ads, the landscape is evolving, with many now incorporating ad-supported tiers to unlock additional revenue streams.
  • Connected TV (CTV) Apps: Connected TV (CTV) refers to television sets with built-in internet connectivity, granting users access to a universe of apps. These apps, provided by content creators, broadcasters, and device manufacturers, represent a significant arena for OTT advertising. Notable examples include:
    • Network Apps: Apps from major television networks (e.g., ABC, NBC, CBS) that offer on-demand access to their programming.
    • Cable Provider Apps: Apps from cable companies (e.g., Comcast, Spectrum) that enable subscribers to stream live TV and on-demand content.
  • Specialized Streaming Apps: Apps focusing on specific content categories or niche interests (e.g., sports, news, movies).
  • Gaming Consoles: Gaming consoles like PlayStation, Xbox, and Nintendo Switch also present valuable OTT advertising opportunities. Users frequently stream video content through these devices, providing a captive audience for your ads.
  • Devices: Beyond the traditional television screen, OTT advertising extends across a multitude of devices, including:
    • Smartphones and Tablets: Mobile devices are a primary platform for video consumption, making them an essential component of any comprehensive OTT strategy.
    • Laptops and Desktop Computers: While less common for traditional TV viewing, these devices still play a role in streaming and can be strategically incorporated into your OTT campaigns.

The extensive selection of OTT placements empowers you with granular targeting capabilities and diverse creative execution. By strategically curating the optimal mix of platforms and devices, you can effectively connect with your target audience and achieve your marketing objectives.

Creative Best Practices: Captivating Your OTT Audience

In the realm of OTT advertising, creative execution is paramount. To cut through the noise and capture viewer attention, your ads need to be more than just informative; they need to be engaging, memorable, and persuasive. Here are some key creative best practices to elevate your OTT campaigns:

  • People Power: Incorporating people into your video ads can significantly enhance relatability and emotional connection. Whether it’s showcasing satisfied customers, relatable scenarios, or charismatic brand representatives, human faces can make your message more impactful.
  • Evoke Emotion (or Humor): Connecting with viewers on an emotional level can create a lasting impression. Consider using humor to entertain and disarm, or tapping into other emotions like joy, nostalgia, or even empathy to forge a deeper connection. Authenticity is key – ensure the chosen tone aligns with your brand and message.
  • Concise Storytelling: In the fast-paced world of streaming, brevity is often a virtue. While there’s no one-size-fits-all rule, targeting a 30-second spot is a good starting point. This timeframe allows you to tell a concise story, highlight key benefits, and maintain viewer attention without overstaying your welcome.
  • Visual Excellence: OTT ads are viewed on screens of all sizes, from smartphones to large-screen TVs. Ensure your video production is top-notch, with high resolution, clear audio, and professional editing. Visual appeal is crucial for capturing attention and conveying a sense of quality.
  • Strong Call to Action (CTA): Every effective ad culminates in a clear and compelling call to action. Tell viewers exactly what you want them to do, whether it’s visiting your website, learning more about a product, or taking advantage of a special offer. Use concise and action-oriented language to drive conversions.

By adhering to these creative best practices, you can craft OTT ads that not only capture attention but also drive meaningful results for your brand.

Tracking and Analytics: The Phrasing Edge

In the dynamic landscape of OTT advertising, meticulous tracking and insightful analytics are not merely advantageous; they are fundamental to success. To truly optimize campaigns and definitively demonstrate return on investment (ROI), granular data and robust reporting mechanisms are indispensable. This is where Phrasing delivers a distinct competitive edge.

  • Essential Metrics: Diligent tracking of relevant metrics is paramount. Key performance indicators (KPIs) for OTT campaigns typically encompass:
    • Completion Rate: The percentage of viewers who watch an ad in its entirety, serving as a crucial indicator of ad engagement and relevance.
    • Click-Through Rate (CTR): The percentage of viewers who click on a call to action within the ad, effectively gauging the ad’s ability to drive immediate action.
    • Reach and Frequency: Reach represents the total number of unique viewers exposed to the ad, while frequency denotes the average number of times a viewer is exposed to the ad. Striking a harmonious balance between these two is crucial to maximize impact and mitigate ad fatigue.
    • Conversion Rate: The percentage of viewers who complete a desired action after viewing the ad, such as making a purchase or submitting a form, directly quantifying the ad’s influence on business objectives.
  • Platform Reporting Capabilities: Most Demand-Side Platforms (DSPs) offer integrated reporting tools that furnish valuable insights into campaign performance. These tools generally enable the tracking of the aforementioned metrics, segmentation of data based on various parameters (e.g., demographics, device type, placement), and generation of comprehensive reports.
  • Phrasing’s Data-Centric Approach: Phrasing transcends the limitations of standard platform reporting. We recognize that achieving true data mastery necessitates in-depth analysis and bespoke customization. Consequently, Phrasing has established a sophisticated and client-centric system:
    • Raw Data Transparency: We facilitate the seamless export of all raw OTT performance data directly from the DSP, ensuring complete transparency and empowering granular analysis.
    • Secure BigQuery Integration: The raw data is then ingested into a secure and controlled BigQuery instance, a cloud-based data warehouse that provides unparalleled capabilities for data manipulation, querying, and advanced analysis.
    • Customized Reporting Solutions: Phrasing’s team of seasoned data analysts leverages the power of BigQuery to craft customized reports meticulously tailored to each client’s unique needs and strategic objectives. These bespoke reports deliver actionable insights, pinpoint areas for optimization, and provide irrefutable evidence of the tangible impact of OTT campaigns.

By prioritizing data transparency and investing in a robust analytics infrastructure, Phrasing empowers clients to make well-informed decisions, refine their OTT strategies with precision, and achieve extraordinary results.

The Future of OTT: Innovation on the Horizon

The world of OTT is dynamic and constantly evolving. To stay ahead of the curve, it’s crucial for digital marketing managers and CMOs to be aware of the emerging trends that are shaping the future of this powerful advertising channel. Here are some key trends to watch:

  • Interactive Ads: The future of OTT is interactive. Imagine ads that allow viewers to click on products, explore additional content, or even make purchases directly within the viewing experience. These interactive elements boost engagement and create more immersive brand experiences.
  • Addressable TV: Addressable TV takes targeting to the next level. It combines the scale of traditional TV with the precision of digital, allowing advertisers to serve different ads to different households watching the same program. This level of personalization maximizes relevance and minimizes wasted impressions.
  • 5G’s Impact: The rollout of 5G technology will further accelerate the growth of OTT. Faster speeds and lower latency will enable higher-quality streaming, seamless ad delivery, and new interactive ad formats. This enhanced viewing experience will make OTT even more appealing to both consumers and advertisers.
  • Data-Driven Optimization: As OTT matures, data will play an even more critical role in optimizing campaigns. Advanced analytics and machine learning will enable advertisers to gain deeper insights into viewer behavior, predict campaign performance, and automate ad buying. This data-driven approach will drive greater efficiency and ROI.
  • The Convergence of TV and Digital: The lines between traditional TV and digital video are blurring. OTT is playing a key role in this convergence, as more and more viewers shift their consumption to streaming platforms. Advertisers need to embrace this shift and develop integrated strategies that span both TV and digital.

By embracing these future trends, digital marketing managers and CMOs can position themselves for success in the evolving OTT landscape and unlock new opportunities to connect with their target audiences in innovative and impactful ways.

Margaritaville OTT Advertising

Conclusion: OTT – Your Next Marketing Power Play

OTT advertising has emerged as a dynamic and powerful force in the marketing landscape. Its ability to deliver targeted, engaging, and measurable ads makes it an essential component of any modern marketing mix. By understanding its benefits, implementing effective strategies, and staying ahead of emerging trends, digital marketing managers and CMOs can unlock the full potential of OTT to drive significant business growth.

At Phrasing, we’re passionate about helping businesses of all sizes harness the power of OTT. We’ve built successful campaigns for a diverse range of clients, from local and regional SMBs seeking to expand their reach to enterprise programs for major brands like Margaritaville Hotels & Resorts. Our data-driven approach, combined with our creative expertise and commitment to client success, ensures that your OTT investment delivers tangible results.

The future of television is streaming, and the future of advertising is OTT. Don’t get left behind. Embrace the power of OTT and let Phrasing guide you to success.

We encourage you to share this article with your network and provide feedback on its effectiveness. Your insights are invaluable as we continue to refine our strategies and empower businesses to thrive in the ever-evolving world of digital marketing.