The Future of OTT Marketing In the Modern Age
Over-the-top (OTT) videos via tv streaming have become increasingly popular. Research shows an expected 26% growth in OTT services by the end of 2022. Modern marketers may significantly improve advertising revenue by leveraging OTT services and connected TV.
While traditional advertising methods such as radio, print, or tv channel slots will likely remain relevant in the upcoming years, a move to OTT marketing could optimize audience response. Specifically, OTT provides the decisive element of audience interaction, where individuals have greater control over their shopping/browsing experience.
Through interaction, consumers can expect personalization, a deciding factor in driving positive customer response. According to market research by Epsilon, 80% of consumers are more willing to make purchases when brands offer personalized experiences. Therefore, OTT marketing with tv streaming could seem like a significant leap in the right direction.
TV streaming enables brands to connect with audiences on a one-to-one basis through advanced technologies such as big data and behavioral targeting. Under these settings, audiences receive recommended content based on various factors, such as account sign-up info and viewing history.
Brands cannot achieve these personalized approaches through traditional advertising methods such as tv channels or radio. Additionally, the rising popularity of mobile apps has led to increased content monetization, as companies such as Netflix dominate the US OTT market with conveniently accessible streaming services.
OTT advertising will likely tap on the expanding user base of these mobile-friendly, connected tv-friendly platforms, as more consumers favor personalized viewing experiences. OTT trends have emerged in various parts of the world. According to a PwC report, India is a global leader in the OTT space, expected to grow at a CAGR of 28.6% over the next three to four years.
Increased OTT Audience/Leads
“Cord cutting” (i.e., consumers unsubscribing to traditional TV channels in favor of on-demand services) is continuing to be a growing trend as more individuals opt for the convenience and privacy of OTT streaming alternatives.
According to Kagan, the media research unit of S&P Global Market Intelligence, there will be continuous growth in global subscriptions for OTT platforms. The surveys predict that the increased preference for on-demand services will carve out $33.6 billion out of US pay-TV revenues over the next five years.
Based on a Deloitte study, 82% of US consumers subscribe to an OTT platform, and additionally, the average viewer subscribes to four video streaming services. Some of the most popular streaming platforms include Netflix, Disney+, and Hulu, which engage audiences by catering to specific subscriber needs and profiles.
As more consumers transition to streaming from traditional TV channels, marketers may expect OTT campaigns to reach a broader demographic. Now might be a strategic period for marketers to re-package advertising campaigns by having them optimized across multiple TV streaming platforms.
Key Strategies for Successful OTT Marketing Via TV Streaming
Audiences could seek OTT streaming as a means of escaping the linear limitations of traditional TV – a trend found in 74% of audiences aged between 18-34. Therefore, marketers should always consider audience priorities when seeking a highly optimized viewing experience. In other words, OTT audiences seek specific content.
As such, companies should always clearly showcase their brands within the first few seconds of an advertisement. Jumping straight to the brand’s underlying style and message can improve engagements with the audiences of OTT platforms. Similarly, a well-positioned call to action within a OTT video ad will prove strategic in attracting customers and leads.
Marketers may include CTAs in various interactive ways. One example involves annotations embedded within a video that lead audiences to a brand’s product page. Alternatively, ads may feature a follow-up screen where viewers can receive specific instructions (i.e., visiting a brand’s official website).
Closing Thoughts – Preparing for the Rise of TV Streaming
OTT video platforms and the supporting technology of connected TVs could reshape the consumer narrative as personalized advertising becomes the new standard. Marketers may consider making the gradual move away from linear channels, as modern consumers tune out from impersonal advertisements and brand messaging.
Additionally, audiences who tune in to OTT TV programs may view them across multiple devices, at times while on the move. The streamlined and accessible process increases the overall audience exposure to an ongoing ad and potentially improves lead conversions.
When it comes down to effective marketing, brands should maximize their ad dollar – achievable with the dynamics of OTT platforms.
Looking into the near-future
OTT advertising and marketing could be here to stay for the long term, and TV streaming will be the catalyst that drives it.
The continuous rise of TV streaming provides a golden opportunity for brand leaders to win the attention of niche audiences with precision, optimize their advertising budget, and bridge the gap between other digital marketing channels – setting the stage for a truly holistic marketing strategy.