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Over-the-top advertising for car dealerships, also known as OTT ads, gives advertisers a better way to reach people who are in the market for a new car. As more consumers move away from traditional TV and embrace streaming platforms, OTT ads allow dealerships to deliver content directly through services like Hulu, Roku, and YouTube TV.
In this article, we’ll discuss what OTT media buying entails, the benefits of OTT advertising, and how over-the-top auto ads can impact sales for dealerships of all sizes.
What Is OTT Media Buying?
OTT media buying is a type of advertising that shows ads on over-the-top services. These services include platforms like Netflix and Hulu that deliver content directly to consumers over the internet, bypassing traditional cable or satellite TV. OTT services also allow people to watch shows and movies on all sorts of devices including smartphones, tablets, and computers, which means they can be shown ads on these devices as well.
How Over-The-Top Auto Ads Work
Over-the-top auto ads work by delivering ads to people through internet-based streaming platforms like Hulu, Roku, Amazon Prime Video, and YouTube TV, which users access on devices like smart TVs and smartphones. Here, we break down the basics of OTT advertising to give you a better understanding of what they include and how they work.
Audience Targeting
Many OTT platforms collect user data and then make it available to advertisers, allowing them to choose the audiences they think are most likely to visit their dealerships or buy their cars. With over-the-top auto ads, car dealerships can target audiences based on their demographics, interests, behaviors, and viewing habits.
Ad Placement Timing
Car dealerships can choose to show their ads at various points during a show or movie such as pre-roll (before the content starts), mid-roll (during the content), and post-roll (after the content ends). When using over-the-top auto ads, advertisers choose the most effective ad placement based on their goals.
Programmatic Buying
Many OTT ads are placed programmatically, or automatically, through platforms known as demand-side platforms (DSPs). When auto advertisers use programmatic buying, it means they’re allowing the program to bid on ad spots in real time based on a set of criteria defined in advance.
Ad Formats
OTT marketing allows car dealerships to show their ads using a wide range of formats. These include short video commercials, interactive ads that allow viewers to interact by clicking for more information about a car or scheduling a test drive, and banner ads that appear at the bottom of the screen. Using a range of ad formats can help advertisers reach different goals.
Performance Tracking and Optimization
OTT platforms allow advertisers to track how ad campaigns are performing using impressions, view-through rates, completion rates, and engagement levels. Car dealerships can use this data to improve their campaigns, making adjustments to things like targeting and bidding strategies on the spot.
What are the Benefits of OTT Advertising for Car Dealerships?
OTT advertising for car dealerships allows dealers to target specific audiences, manage campaigns in real time, and reach people on multiple devices, all of which can lead to better engagement and, ultimately, higher sales. Here, we break down some of the key benefits of OTT advertising for car dealerships.
Less Ad Skipping
One of the problems car dealerships face, especially with video ads, is ad skipping. This happens when a user clicks out of the ad before it has finished playing. OTT platforms allow advertisers to reach niche audiences based on their demographics, interests, viewing habits, and more. This type of targeting improves the relevance of ad campaigns and can ultimately make them more successful since the ads are being shown to people who might truly be interested in the cars being offered.
Additionally, many OTT platforms have mechanisms that limit or prevent ad skipping, making sure that viewers see the entire ad. This results in higher completion rates compared to traditional digital ads.
Better Engagement
OTT viewers are typically more engaged since they choose the content they want to watch on demand, as opposed to cable TV which runs on a schedule determined by the network. This means people who watch streaming services like Netflix are actually paying attention to the screen, which can lead to better overall performance for over-the-top auto ads.
Reach Multiple Devices
One of the benefits of OTT advertising is that people can watch OTT content on multiple devices, moving from their TVs to tablets or smartphones and back again. This type of reach means that ads can be shown to viewers no matter where they’re watching.
Detailed Ad Metrics
OTT ads come with detailed performance metrics. When advertisers can see the in depth performance results of their ads, they can track the success of their campaigns and make adjustments on the spot.
Better Flexibility
With OTT advertising, car dealerships have more control with the ability to change budgets, ads, and audiences in real time. This allows advertisers to tweak campaigns and reduce money wasted on underperforming ads.
Access to a Wider Audience
Over time, more and more people are moving away from traditional cable in favor of streaming services. OTT advertising gives car dealerships a way to reach the growing number of people who may be difficult to reach through conventional TV advertising.
Can Any Car Dealership Use OTT Advertising?
Yes, any car dealership can use OTT media buying, whether it’s a large franchise or a smaller, independent business. OTT advertising for car dealerships has a flexible budget, which means advertisers can run campaigns that fit their marketing budget while still reaching an engaged audience. Additionally, with features like geo-targeting, dealerships can focus their ads on potential buyers within their local area, further improving the performance of their ads. With the rise of CTV, OTT ads allow dealerships to filter specific audiences through platforms like YouTube, Apple TV+, and Hulu.
Learn More About OTT Advertising for Car Dealerships with CTV Blueprint
OTT auto ads give car dealerships the opportunity to connect with people more effectively, driving awareness and generating leads in a market that is historically competitive. To learn more about OTT advertising in the automotive industry, contact CTV Blueprint today.
