How OTT Differs from Tradtional TV

1. How OTT Advertising Differs from Traditional TV Advertising PREPARED BY OHYA! MARKETING 2022

2. OTT Advertising OTT ads, also known as streaming TV ads, are the advertisements delivered to viewers within streamed video content. OTT, or streaming TV, ads offer an opportunity for advertisers to reach new audiences at scale as more viewers turn to streaming video content in lieu of traditional cable and broadcast TV. Most people watch streaming content on OTT devices. These devices span multiple technologies and platforms such as: • Chromecast, Roku, or Amazon Fire TV Stick. • Smart TVs with Netflix and HBO Go. • Playstation 5, Xbox One X, and Nintendo Switch. • Apps and web browsers on PCs and tablets. These devices can all stream digital media online. Unlike regular TVs, no cable subscription is required. You only need one subscription to the content provider. There is no way to show traditional TV commercials to OTT users. In order to reach streaming media consumers, advertisers must use specialized OTT platforms. Adtech firms are working to improve brand-customer interactions. OTT platforms outperform traditional cable TV commercials. Advertisers can now earn more per dollar spent displaying branded content to audiences. But OTT technology doesn't just help TV advertisers save money. It also outperforms cable TV in terms of quality. These differences impact ad experiences across streaming platforms.

3. OTT Advertising vs. TV Commercials It's important to understand how OTT advertising differs from traditional TV commercials. • TV commercials send the same message to all viewers of a particular channel. Advertisers buy airtime from TV networks to air their clients' content. Brands track their success via TV ratings. • OTT ads can target specific users based on their streaming data. Advertisers have contracts with streaming services and can choose when and where to place ads programmatically. Brands can assess their success using a variety of metrics. Immediately, some key distinctions should emerge. The cable infrastructure limits traditional TV networks and their advertisers. Their infrastructure limits some of their options. These aren't the same for OTT ads.

4. The Advantages of OTT Advertising Over Traditional TV Advertising: • Segmentation. Advertisers can only show one commercial per channel. OTT advertisers can segment audiences based on almost any data point. Advertisers can target people based on their demographics, device usage, and past purchases. • User tracking features. Advertisers on television have no way of tracking viewers or even knowing if anyone watches their ads. Advertisers can see how many viewers skipped an ad, clicked on it, and more. • Editing. TV viewers can and will skip commercials. OTT advertisers can prevent skipping, ensuring brands reach their target audiences. Personalized content reduces ad avoidance. • Quick Action. Many streamers use mobile devices. Customers respond quickly to high-quality ads that are tailored to their needs. Unlike traditional TV, the conversion is almost instant. • A/B Retargeting. Brands can use OTT advertising to reach audiences across multiple devices and channels. Brands may target a single audience segment via streaming ads, social media, and more. Such integrated marketing strategies are impossible on traditional TV advertising. • Unobtrusive Display. Ad-interrupting content is a choice for OTT advertisers. Many viewers dislike being interrupted by commercials. To improve the user experience, OTT advertisers can choose to display ads as banners or chyrons.

5. The Rise of Over-the-Top Ads According to a 2019 Roku study, half of its users don't have traditional cable or satellite service. The COVID-19 pandemic turned on-demand content into a billion dollar industry.. So has the value of the OTT platforms and streaming providers like Amazon, Netflix and Roku. eMarketer predicts $14 billion in OTT ad spend by 2023. This growth is due to many factors. They paint a picture of a new streaming media landscape centered on user convenience and autonomy. On-demand content allows viewers to pick and choose. They can now choose what content they consume, when and where. Personalization of advertising for each user fits perfectly in the new media landscape. It meets the needs of individual viewers by focusing on their priorities. OTT ad spend is expected to rise as streaming services improve the technologies that power these ads. Advertisers who can personalize OTT content and track viewer responses are more likely to create better ads and show them to their most engaged audiences. Where Can You Buy OTT Media Ads? Streaming services use a variety of technologies. As a result, they provide numerous ad delivery options. Each of these OTT advertising models has its own set of benefits and drawbacks. The most popular form of advertising on OTT media today is ad- supported video-on-demand (AVOD). These platforms are free to use for all viewers. AVOD platforms will place ads between (or in the middle of) their content selections. AVOD Platforms include: Hulu, IMDb TV, Peacock, Plex, Pluto TV, Quibi, STIRR, Samsung TV Plus, The Roku Channel, TiVo+, Tubi, Vudu, WatchFree, Xumo. YouTube is the most popular AVOD platform. YouTube advertises on every video that gets enough views. It also claims the right to use any uploader's content for its own advertising. Most ad-supported OTT media services are hybrid-supported. Users can choose to support the streaming service directly with a paid subscription or to accept ads in exchange for free (or reduced- cost) access.

6. Most OTT Advertising Platforms Focus on 4 ad types: 1. Targeted TV Ads Networks show these ads to users who are viewing the same content. These ads work much like regular TV ads, except that advertisers can segment them by audience. Advertisers can target users based on any data they have access to. Users in a specific region may see ads tailored to their location. Viewers in a certain age range can see ads tailored to them rather than younger or older viewers. 2. Content Recognition Ads These ads are based on the viewer's current viewing habits. These ads can provide immediate value by recognizing real-time content consumption. Advertisers can target specific content consumers using automatic content recognition. Like Google Ads for its search engine, this allows brands to actively respond to users' search queries. Advertisers can use this method to create multiple ads. Personalized ad content can appeal to different audiences by changing a single message. 3. Smart TV Ads Connected TV ads use data from multiple devices on the same network to inform ad display choices. Advertisers can use connected TV ads to display content based on a more detailed profile of the target audience. Advertisers may notice a Playstation 5 user has a Samsung smartphone on the same network. This can improve the ad experience for the viewer. Advertisers can target both devices with the same ad or target specific users.

7. 4. Programmatic Ads Programmatic ads target users using automated, data-driven systems. These are the ads most people associate with online streaming. They are highly targeted and provide granular details to maximize your ad spend. Programmatic ads are the most personalized for viewers. In-depth programmatic ad tools are available to very few OTT platforms. Issues with OTT Ads Over-the-top (OTT) advertising allows brands to track user behavior and measure results. Choosing the right data to determine ad choices is a major challenge in OTT strategy deployment. This is especially true for advertisers used to the world of Nielsen ratings and CPM. OTT marketing is very similar to paid search marketing in terms of tools, metrics, and techniques. Targeting users based on their actions, preferences, and purchases is a big plus, but it takes time and effort. Similarly, advertisers must be cautious in assessing campaign success. Buying OTT Ads OTT inventory can usually be bought directly from publishers and streaming services. Because OTT ad placement requires extra research, most professionals will partner with an agency that can handle programmatic OTT placement. Some of these agencies provide valuable extras like location- based device capture. Many of them have pre-built consumer databases that help them optimize ad content. These assets are typically beyond the reach of a single brand, making strategic ad partnerships a compelling option. OTT advertisers pay per impression or ad view. This means the advertiser only pays if someone actually sees the ad. And the average OTT ad costs $30 to $40 CPM (cost per 1,000 impressions). www.ohyamarketing.com