OTT programmatic advertising mixes the benefits of over-the-top content delivery with programmatic ad buying, allowing advertisers to reach their target audiences in more effective ways. In this article, we’ll break down the meaning of OTT, how OTT advertising works, and why you might want to use OTT ads. 

What Does OTT Stand For?

The meaning of OTT is “over-the-top.” This term refers to platforms that offer audio or video content over the internet without needing to use cable or satellite TV services. People can typically get OTT content through streaming services like Netflix, Hulu, Amazon Prime Video, Disney+, and YouTube. Unlike traditional media that was only available through a TV, OTT content can be watched on various devices like smart TVs, computers, tablets, and smartphones. 

What is OTT Marketing?

OTT marketing is a type of marketing that specifically targets OTT services. It works by delivering advertisements through streaming services that bypass traditional cable options. This allows advertisers to reach viewers directly over the internet on devices like smart TVs, smartphones, tablets, and computers. 

Here, we break down a few of the main components to help answer the question, what is OTT marketing?

Audience Targeting

OTT platforms like Netflix collect user data, which they then offer to advertisers to help them reach the most relevant audiences. Advertisers can use this data to target specific audiences based on their demographics, interests, behaviors, and viewing habits. This helps marketers pinpoint better audiences and generally improves the success of their ad campaigns. 

Ad Placement Timing

Ads can be placed at various points within the content such as pre-roll (before the content starts), mid-roll (during the content), and post-roll (after the content ends). When serving OTT ads, advertisers can choose the most effective ad placement based on their goals.

Programmatic Buying

Many OTT ads are placed programmatically, or automatically, through automated platforms known as demand-side platforms (DSPs). When an advertiser uses programmatic buying, it means they’re using real-time bidding to buy the ads, which gives them the power to show their ads to the right audience at the best time. 

Different Ad Formats

OTT marketing allows advertisers to show their ads using many different formats. This includes short video commercials that play before, during, or after the content, interactive ads that allow viewers to interact by clicking for more information or making a purchase directly, and small banner ads that appear at the bottom or top of the screen.

Better Campaign Management

Advertisers can use OTT platforms to manage their campaigns. Usually, this means setting up targeting criteria, selecting ad formats, determining budgets, and scheduling ads to run at the best times based on their audience and the product they’re selling.

Performance Tracking and Optimization

OTT platforms give users reporting tools that allow them to track how their ad campaigns are performing. Impressions, view-through rates, completion rates, and engagement levels are all monitored, and marketers can use this data to improve their campaigns, making adjustments to things like targeting and bidding strategies.

Better Viewer Experience

OTT platforms often offer high-quality experiences for viewers with engaging content and limited ad interruptions. There are rarely “commercial breaks” in OTT platforms like there once were on TV. Ads, therefore, are typically more relevant, which can lead to better overall campaign performance.

What Are the Benefits of OTT Advertising?

OTT advertising comes with benefits that make it a good option for advertisers, especially if they want to reach a more engaged audience. Here, we break down some of the key benefits of OTT programmatic advertising. 

Targeted Advertising

OTT platforms allow advertisers to reach very specific audiences based on demographics, interests, viewing habits, and more. This type of targeting improves the relevance of ad campaigns, ultimately making them more successful. 

Better Engagement

OTT viewers are typically more engaged since they choose what and when to watch content. This leads to higher ad recall and better overall performance for advertising campaigns.

Reach Multiple Devices 

Users can watch OTT content on multiple devices, moving seamlessly 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.

Serve Alongside High-Quality Content 

Platforms like Netflix, Hulu, and Amazon Prime Video are known for their high-quality content. Advertising alongside this type of content can improve the perception of brands who advertise there.

Detailed Ad Metrics 

OTT ads come with detailed performance metrics like view-through rates. When advertisers can see in-depth performance results, they can track the success of their campaigns and make adjustments on the spot.

Better Flexibility 

Advertisers have more control than ever over their campaigns with the ability to change budgets, ads, and audiences in real time. This allows advertisers to continually tweak and improve their campaigns, lowering the money wasted on underperforming ads. 

Cost Effective Ads 

When using programmatic buying, advertisers can be more cost-effective by making sure their ads are shown to the most relevant audiences. This reduces wasted ad spend and improves overall return on investment.

Different Ad Formats

OTT platforms support many different ad formats including pre-roll, mid-roll, post-roll, and interactive ads. This variety allows advertisers to choose the best format for their specific campaign.

Less Ad Skipping

One of the problems some advertisers face, especially with video ads, is “ad skipping.” This happens when a user clicks out of the ad before it has finished playing. Many OTT platforms have mechanisms that limit or prevent ad skipping, making sure that viewers see the entire ad. This can result in higher completion rates compared to traditional digital video 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 advertisers a way to reach the growing number of people who may be difficult to reach through conventional TV advertising.

Learn More About OTT Meaning and OTT Ads with CVT Blueprint  

Over-the-top advertising gives advertisers a combination of targeting, high engagement, measurable results, and flexibility. At CVT Blueprint, we believe OTT ads are one of the best ways to reach a modern audience.