What is OTT Advertising?
OTT or Over The Top advertising is the targeted advertising content delivered to consumers via streaming platforms on a laptop, mobile, connected TVs, or gaming consoles. Over the top is a streaming media service provided by Disney Hotstar, Viacom Voot, Netflix, Hulu, Sony Liv, Sun NXT, HBO, and other streaming platforms.
Connected TV on the other hand is another TV device that is connected to the internet and can stream content online from different sources into the TV. Even though connected TV and OTT seems very much the same, but it is significantly different. Connected TV is a device whereas OTT is a method to deliver content.
Advantages of Over-The-top advertising
Over-The-Top advertising is gaining momentum across the globe due to the benefits it brings to all the players in the advertising ecosystem. Advertisers and agencies like OTT advertising because it provides controls and provides transparency on their media spends.
Hyper Targeting – Advertisers and agencies want to ensure that their advertisements reach the intended audience. In comparison to the traditional TV that has limited to no targeting capabilities, OTT advertising enables advertisers to reach the intended audience with specific demographic and behavioral characteristics. Marketers can create personalized brand experiences and deliver relevant ads to move customers through the marketing funnel.
Large Reach – With the proliferation of smartphones, tablets, and computers significantly increasing, OTT platforms have been able to capitalize on the wave and grow with delivering content across different mediums. It is estimated that more than 200 million people are actively using OTT every month just in the US. This allows advertisers and agencies to reach a wide range of users.
Cross Channel Targeting/Retargeting – Marketers with their arsenal of tracking capabilities and metrics will not be able to realize the full potential of cross channel advertising capabilities and measure the return of advertising spend. They can now get a complete picture of the consumers and track their browsing patterns to buying patterns.
Comprehensive Metrics – Unlike TV where the ratings for shows/episodes and TV channels are based on a sample survey panel, OTT has a significant advantage on the metrics where marketers get a complete view of total views, web & mobile downloads, and sales.
Contextual Advertising – Gone are the days where one creative is pushed out to all the consumers without any context. OTT platforms allow marketers to reach the consumers and ensure the creatives that are delivered to these consumers based on the context of what they are watching, where they are, and what they have bought recently.
How advertising works in OTT
Buying Ads in OTT
Advertisers and agencies typically buy ads from OTT players in two ways. The first one is the guaranteed insertion order where the advertiser and agency have a direct relationship with the OTT publisher. The second one is the programmatic insertion orders which are automatically squared off based on real-time bidding.
Ad Insertion Methods
Server-Side Ad Insertion (SSAI) also known as “ad stitching,” is the preferred choice for live programming, simulcast, and linear programming. Consumer experience is very streamlined by having one continuous stream of content when alternating between content and ads. Advertisements are inserted in the video stream at the point of delivery thereby ensuring a higher probability of delivering the ads at low latency.
There are two types of tags used to deliver advertisements in OTT players.
VAST Tags – A script that empowers video players to run video ads in coordination with ad servers. The purpose of VAST is to programme a video player to run video ads as per the publisher’s configurations.
VPAID Tags – A script that allows video ad units to interact with video players. The difference between VAST and VPAID is that VPAID empowers advertisers to serve rich media, interactive ads to users, which VAST doesn’t and also allows advertisers to also record the data on how users interact with their video ads.
According to the Publicis Groupe India report and Nielsen India report, media consumption on streaming OTT platforms has registered a 34 to 60% increase. Brands have started to pour more and more of their media dollars into these OTT platforms with precision targeting enabling brands to reach the right audience based on their content consumption preferences and other behavior and demographic targeting.
The latest TAM AdEx report on ad insertions on the OTT streaming platforms has seen an increase of about 98% in Jan-May 20 in comparison to Jan-May 19. Also, the number of OTT platforms has increased from 24 to 41 for the same period. Overall it’s clear that OTT advertisements will enable marketers to reach consumers in the future in a more precise way.
Symmetriq is an Omni Channel Revenue Management platform allowing you to unify inventory, manage quote to cash, and maximize revenue across OTT, Digital, Linear, and Print in a Single Cloud-Based SaaS Advertising Revenue Management platform. Symmetriq was born out of the need to provide tools, technologies, and platforms to enable media companies to manage and run a profitable advertising business. Our omnichannel advertising revenue management platform is built natively on the cloud with the latest web technologies with the scale being the primary driver without compromising on security and compliance which has become paramount in the current privacy-first world. With Symmetriq you can:
Scale your ad sales
Streamline your ad operations
Reduce your leaky revenue bucket
Get complete visibility on your revenue
Manage multiple rate cards as your business scales
Customize your product catalog based on your business requirements
Measure the health of your advertising business in real-time
We help leading publishers across the globe manage their complex advertising business in a single platform enabling them to run a profitable media business. For any queries, please reach out to [email protected].