Over-the-top (OTT) has become a buzzword in the entertainment industry in recent years. But what exactly is OTT, and why is it a billion-dollar advertising platform that many people still don’t know about?
OTT refers to the delivery of audio, video, and other media content through the internet, bypassing traditional cable, satellite, and broadcast television platforms. Services such as Netflix, Amazon Prime Video, Hulu, Disney+, and HBO Max are all examples of OTT platforms that allow users to stream content directly to their internet-connected devices.
These platforms have disrupted the traditional entertainment industry, allowing viewers to consume content on-demand and often without advertisements interrupting their experience. But the absence of ads is changing as advertisers realize the potential of the OTT market.
OTT advertising is growing rapidly, with revenues expected to surpass $120 billion globally by 2024. The rise of connected TV devices, such as smart TVs and streaming sticks, has enabled advertisers to reach consumers through OTT advertising.
One of the key advantages of OTT advertising is its ability to target specific audiences. Unlike traditional television advertising, which broadcasts to a wide demographic, OTT platforms allow advertisers to target consumers based on their interests, demographics, and even viewing behavior.
For example, an advertiser can target consumers who frequently watch cooking shows with ads for kitchen gadgets or food delivery services. Advertisers can also track the effectiveness of their campaigns in real-time, adjusting their strategies as needed to improve results.
OTT advertising is also more cost-effective than traditional television advertising. Advertisers can purchase ads on a CPM (cost per thousand impressions) basis, which means they only pay for the number of times their ad is viewed. This makes OTT advertising accessible to small and medium-sized businesses, which may not have the budget for expensive television ads.
In conclusion, OTT is a rapidly growing industry that has disrupted the traditional entertainment and advertising industries. As more consumers shift away from traditional television and towards OTT platforms, advertisers have a unique opportunity to reach specific audiences with targeted ads. With revenues expected to surpass $120 billion globally by 2024, OTT advertising is a billion-dollar platform that advertisers cannot afford to ignore.
