Digital Marketing Solved Blog

How OTT is Changing the Way Brands Reach Buyers

digital video

Video consumption just won't stop. Data from eMarketer predicted that in 2018, 181.5 million people in the U.S. will use connected TVs at least once per month, and video is just one portion of over-the-top (OTT) consumption. Customers are also using mobile devices to access video streaming.

In part two of this five-part series on video, we covered video consumption facts and viewing trends. But as more people turn to OTT content — or film/TV programming delivered via the internet rather than cable or broadcast — what does this increase mean for video marketing?

OTT Growth and Cable Trends

This rapid OTT growth comes as great news to marketers who feared the cord-cutting trend would threaten their ability to reach key audiences.

In a study of 10,000 people, a whopping 17 percent identified as cord-cutters (people who have canceled their cable subscription) or cord-nevers (people who have never subscribed to a cable service), according to data from the GfK MRI Cord Evolution report. With the rise in high quality, original content available through streaming services, it looks like this number will only continue to grow.

Benefits of OTT Advertising

When compared with traditional advertising, OTT offers several advantages:

  • More view time. Unlike traditional TV ads, OTT advertising offers a multi-device approach, meaning marketers can access customers whether they're watching TV, enjoying a lunch break, riding the train to work or any other time someone is likely to stream video content.
  • Precise targeting. Instead of basing your ad buying decisions on simple demographics like age and gender, you can target segments of an audience that are most likely to be interested in your product or service based on other interests and online behaviors.
  • Enhanced viewership data. When you know the time, place and devices people are using to consume your ads, you can make data-backed decisions to optimize on the fly and improve future campaigns.

Essentially, OTT growth is an excellent opportunity for marketers who want more access to their audiences, refined targeting options and viewership data that informs spending decisions.

Stay tuned for part four of this series, where we'll examine video spending and revenue forecasts into 2020 and beyond and discuss why marketers can't afford to miss this opportunity.

Related Articles

Video Advertising Trends: 4 Facts About Video Consumption That Brands Can't Ignore

Video Advertising Trends: Understanding Video Consumption Habits

3 Mobile Video Trends for Advertisers to Follow This Year

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