Digital Marketing Solved Blog

Video Advertising Trends: The Future of OTT Advertising

future of OTTWhen it comes to video advertising, there are two things we can say with near absolute certainty: Video ad usage is growing and it won't stop anytime soon.

As part of our series on video, we've examined video advertising from nearly every angle. We've shared data-based facts to help marketers better understand video consumption, delved into common video consumption habits, discussed the growth of over-the-top (OTT) video and shined a spotlight on advertising spend estimates for the next few years.

To cap it off, we're looking into the future of OTT advertising — specifically, what trends lie ahead and how to determine if OTT is a worthwhile addition to your advertising mix.

What Is the Future of OTT?

There was a time when cord-cutters (people who have canceled their cable services) opted for ad-free alternatives and many advertisers assumed this would be the end of ad-supported television. However, today viewers are ramping up consumption of ad-supported programming like Hulu, and dozens of niche networks that continue to pop up on OTT devices.

But while watching TV with advertising used to mean seeing ads that may or may not appeal to your lifestyle, OTT technology allows for hyper-targeting that delivers more relevant ads and a better viewer experience.

As for OTT itself, more than 51 million U.S. households use OTT streaming of video content, according to data from comScore, and as smart TVs and OTT devices become more prevalent, it's likely that this number will only continue to grow.

Should You Invest in OTT Advertising?

Video consumption is on the rise and OTT is growing rapidly. But how do you know if OTT advertising is right for your brand? Here are a few reasons why it's a worthwhile investment.

  1. It's highly targeted. OTT advertising allows advertisers to target audiences not only based on simple demographics like age and geographic location, but also on recent habits and immediate needs.

  2. It's easy to measure. There's no guessing or estimating viewership because OTT advertising is based on exact figures, and you can check analytics at any time.

  3. High ad completion rates. Viewers on OTT devices complete 98 percent of ads, which is an impressive 14 percent higher than ad completion on desktop and 12 percent higher than ad completion on smartphones, according to data published in Multichannel News.

In short, the future of OTT is bright and the future for advertisers leveraging the OTT platform may be even brighter.

Related Articles

Video Advertising Trends: Understanding Video Consumption Habits

Video Advertising Trends: How OTT Growth Is Changing the Way Brands Reach Buyers

Video Advertising Trends: Tracking the Growth of Ad Spending

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