What is OTT Advertising?
What does OTT mean? Over the past ten years, I’ve heard an increasing number of folks asking: “What is OTT advertising?” “Over-the-top” is what OTT stands for. This handy term describes a new way to get movies and TV shows over the internet whenever we want, on various devices, without using traditional broadcast, cable, or satellite pay-TV services. Simply put, OTT streaming means paying an internet provider, like Xfinity, for internet access to watch Netflix without paying for cable TV.
Over-the-top (OTT) media platforms offering video, audio, and other “over-the-top” conventional cable and satellite providers have skyrocketed in popularity. As a result, a market that Netflix once dominated has grown to include dozens of popular streaming services that together reach hundreds of millions of consumers.
How does OTT get to you?
What is OTT advertising known for? OTT content is so popular because it’s easy to get to. Customers only need a fast internet connection and a device that can connect to the internet and run apps or browsers to stream OTT.
- Mobile OTT Devices: You can get OTT apps for your phone or tablet to stream on the go.
- Personal computers: People can access OTT content using desktop apps or web browsers.
- Connected TV devices: Roku, Apple TV, Fire TV, and more are some of the most common. OTT apps can also be used on game consoles like PlayStation.
- What is an example of OTT? OTT streaming. OTT streaming is when an OTT content platform, like Netflix or Hulu, offers premium content and a better experience. The user does not need a cable TV subscription to watch. OTT content can be streamed on several devices because of this format.
How do Over The Top (OTT) media services work?
You can use your computer, phone, tablet, smart TV, or gaming console to connect to OTT platforms. You don’t need a TV service provider subscription, but depending on the OTT platform, you may need an OTT platform subscription. This is the case with services like Netflix and Disney+, where users can watch curated content at any time with a monthly or yearly subscription. Some OTT services, like Amazon and Peacock, don’t charge customers subscription fees. Instead, they make money by showing ads while people watch the content or offering cheaper subscriptions with fewer ads.
Services for OTT Media
Now that we know the service, what is OTT advertising really about? Many OTT platforms offer media services, like Netflix, Disney+, Hulu, HBO Max, Amazon Prime Video, Hulu, Peacock, Pluto TV, and many more.
One of the many reasons OTT content is so popular is that it’s easy to find. Also, OTT providers are now making some of the best original content. In addition, customers only need a high-speed internet connection and a device that can run apps or browsers to stream OTT.
The OTT landscape is changing, and our food and beverage marketing agency’s media team has a wealth of experience in this well-established sector. And its most recent development may present a fantastic chance for food and beverage firms seeking to benefit from increased visibility.
Why Now for Food Brands?
What is changing in OTT advertising? Beginning in 2023, Netflix will make a new tier of service available to users that will be supported by advertising. OTT brands like Disney+, Hulu, Paramount, Peacock, and others have already experimented in this area. Users will be obliged to view advertisements at predetermined intervals in exchange for a reduced monthly subscription fee.
The new subscription tiers are, on the surface, advantageous for all parties. Ads are still not required of those who don’t want to see them. Users who don’t mind adverts can get their subscriptions for less money. OTT platforms can increase their revenue. But, of course, advertising also has innovative new ways to connect with its target audience.
OTT Advertising Amazing Benefits
Food & Beverage brands, as well as brands in other industries, can benefit a lot from OTT advertising for many reasons:
- Reach A lot of people. Most people reading this post have at least one subscription to a streaming service. There’s a good chance most of your peers and friends have multiple media streaming subscriptions. Even though not all of these people will see ads, over-the-top (OTT) ads could reach millions. You are targeting your ideal audience. Intelligent marketers know better than to send generic messages to many people, even though this is a high-volume strategy. This is one reason why over-the-top (OTT) ads are so powerful: you can use them to target specific audiences, which cuts down on waste and makes it more likely that you’ll reach the people you need.
- Young audiences. If your brand is mainly aimed at younger people, this is great news: younger people use streaming platforms more than older people do. That doesn’t mean that OTT ads are useless for older people, but targeting young people is easier and more convenient.
- Microtargeting and geotargeting. Do you want to reach out to people in a certain geographical area? You can start with OTT ads and many other ways to improve your targeting.
- Analytics on a higher level. How do you know if your ads are getting results? Most modern digital advertising platforms have advanced analytics that let advertisers see how their ads are doing and how they can do better in the future. In addition, there are ads on streaming platforms and apps just like on TV.
- Costs should go down. OTT ads tend to cost less than traditional forms of advertising. A brand doesn’t need to spend much money to get its commercial on a major TV network. Instead, you can use a much cheaper strategy to give you a better return on your money (ROI).
- Flexible budgets. Don’t want to put too much money into an unproven plan? Don’t be afraid. The budgeting for over-the-top (OTT) advertising is very flexible, so you can use it whether you’re a small startup with a tight budget or a huge international company.
Tips for OTT advertisers in the food and beverage market
There are many ways to use OTT advertising to your advantage, and if you run a business in the food and drink industry, you can get even more out of it. Here are some of the best ways to make the most of this platform:
- Set your goals ahead of time. Even though there are many benefits to OTT advertising, ads aren’t always or always useful. It would be helpful if your campaign still had a clear goal. Set your goals ahead of time and ensure that everything you do with your ads helps you reach them.
- Identify your target audience. Use the sophisticated tools you have to reach your target audience. For example, it’s probably better to show your ads to 500 people interested in your products than to 10,000 people who aren’t.
- A/B testing to minimize risk and learn. Advertising is a science and an art, so it’s hard to know exactly how your ads will work. Instead of guessing, try things out. Use AB testing to compare your ads and determine which ones work best.
- Analyze! Data analytics platforms can tell you quickly how well your ads are doing and give you ideas for improving them. Focusing on insights that can be used can
help you push your results even higher.
Advertisers have been using OTT ads for a while, but they are about to become very popular and easy to find. So, now is the time to think about your business goals and plan a campaign to make the most of this chance because millions of new people will soon be seeing these ads.
How will the OTT industry develop in the future?
If there’s one thing that American culture is always associated with, it’s coolness. After World War II, America was all about bubblegum, Coke, denim jeans, and eating dinner in front of the TV to watch the Andy Griffith show. Families would get out their dinner trays and heat them up in the microwave before sitting together to watch TV.So we’re just going to say it: the real American pastime is binge-watching the latest must-see TV shows. It was a weekly tradition and an essential part of the culture in every way.
But being cool isn’t just about hobbies; it’s also about what’s coming next. And families no longer watch TV together once a week as a group in front of the TV. Now, we all stream our favorite shows and movies on our phones and tablets as much as we do on our computers and TVs. The best part is that we can watch our shows and movies whenever we want. It’s cool and shaping (if not leading) our “need-it-now” mentality and culture from the inside out.
That doesn’t mean that everything is going well. When it comes to new opportunities, it’s clear that cable companies are getting the short end of the stick. As are the big, popular networks like ABC, CBS, and the like.
But the demand for content isn’t making these companies go away. Instead, it’s pushing them to think of new ways to market and deliver their content. Many cable providers also offer internet, and the main TV channel networks aren’t giving up their broadcast streams. Instead, they’re also going after the OTT audience with digital streaming through apps, platforms, and more. How come that works? Because many people want content, the number of people who want content on demand is growing quickly. 76% of all streaming time in Q1 was spent watching an on-demand video, while only 24% was spent watching a live video.
Is your food and beverage brand interested in taking advantage of OTT disruption? NewPoint Marketing has the team, tools, and insights needed to grow your food and beverage brand. Contact us for more information today!