Advertisement on OTT Platforms – What Advertisers Need to Know

How audiences consume content has fundamentally changed over the past years. The shift from cables to the internet has opened doors for digital opportunities all over the screen! Advertisers have found their way directly into your viewing screens now! This blog will help you understand how advertisements work on OTT platforms, their benefits and how to get started. If you are an advertiser who is looking to expand their advertisements on OTT platforms, this one is for you!

One of the biggest trends shaping advertising right now is the rapid rise of streaming services and video viewership which makes more than 80% of all internet traffic. This new media ecosystem with more than 150 million people across the globe consuming content through streaming video services such as Netflix, Amazon Prime Video, etc. is known as “Over The Top” or popularly as “OTT” platforms.

Understanding Advertisements on OTT Platforms

OTT Advertising is delivered directly to viewers over the internet through streaming services. It is individualized content provided to viewers on their TV sets while they watch the same TV show. Thus, advertisements on OTT are targeted ad delivery enabled by programmatic technology.

With the rise in OTT platforms, advertisers can expand their reach to their target audience that previously was only available through traditional TV. In fact, some experts predict that the revenue coming from OTT platforms will increase anywhere between 45-60%. So, if you are a tech pioneer, expect to reap rewards in the coming future.

How Are Advertisements Delivered on OTT?

The delivery methods depend on streaming platforms and their interaction with the OTT devices. Such as VAST (Video Ad Serving Template). Ad insertion could be done through the server-side or client-side. Here is how the whole process is carried out:

  • First, an OTT audience is created based on the data obtained from the platform.
  • Second, a campaign is launched. The platform connects the audience to a specific TV subscriber list across all OTT platforms.
  • Ads are delivered to the viewers through OTT platforms. Various tags are used to make sure how the ads appear to the viewer.
  • Lastly, the platform sends data reports back to the advertisers regarding their success of the campaign.

Benefits of OTT Advertising

OTT is a vanilla cake for all. Viewers love it because they no longer bear with the amount of TV subscription which is limited in terms of content and convenience. Advertisers love it because it has huge revenue potential. Along with these perks it also offers the following benefits:

  • Precise targeting that eliminates waste. It enables advertisers to promote shorter but relevant ads.
  • Enhanced Ad relevance leading to increased engagement.
  • Advanced analytics helps advertisers obtain data about their audience on how the campaigns are working and what needs to be improved.
  • Challenges of OTT Advertising

    As we discussed above, there are many things OTT advertising offers you that traditional TV advertising does not. However, there are certain challenges that are faced by advertisers that does not make it a perfect medium.

  • Regulations:
  • As the number of OTT platforms are still rising and creating a space of their own, there is not much light on rules and regulations on the quality of it so far. Particularly, Ad fraud prevention has managed to find its way into OTT and could pose significant problems if protective regulations are not in place. This includes things like standard naming practices, invalid traffic detection and many other conventions.

  • Management:
  • In the current situation of OTT management and measurability, there is no opportunity to manage the ads in real-time as well as no option to measure performance metrics. OTT platforms are still emerging which is making it difficult to measure the online engagement and user reaction.

    Even though OTT platforms provide a large array of opportunities, it will raise its bar in the coming future since technology continues to grow. If you are an advertiser aspiring to grow online and advertise on the OTT platforms and are looking for digital assistance, get in touch with our experts at Responsive Media Tech Services or simply put your queries in the comments section below!

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