OTT/CTV Is Driving Real Growth in Local Advertising

Why OTT/CTV Matters for Local Advertisers

Massive Reach + Engaged Audiences

With CTV penetration near universal levels in the U.S., nearly every household can be reached with streaming content that consumers actively choose to watch. That makes CTV one of the most efficient ways to serve ads in a premium, lean-back viewing environment — often with higher completion rates and engagement than other digital formats.

Precision Targeting Meets Big-Screen Scale

Like digital display and social platforms, OTT/CTV offers demographic, geographic, and interest-based targeting — but on the television screen audiences still value most for brand impact. This convergence of precision and premium placement is a major reason why over 50 % of marketers are increasing their CTV budgets.

Streaming Is Dominant — Not Supplemental

Today, streaming isn’t just an add-on — it’s a primary viewing choice for many consumers. With streaming now overtaking linear TV in total viewing share and growing rapidly year over year, advertisers that shift spend toward OTT/CTV are aligning with actual consumption habits.

Who Is Spending on OTT?

Many industries have shifted budgets to OTT from traditional and digital channels. The BIA 2023 forecast cites several industries as prime to spend on the tactic in 2023, including:

• Performing arts
• Amusement parks
• Retail (grocery, clothing, big-box stores)
• Health care and pharma
• Education
• Legal services
• Automotive
• Restaurants

Of these, legal services, hospitals, restaurants, auto manufacturers and supermarkets will be the top spenders.

The pitch and logistics will determine your ability to acquire new customers in these categories and get existing ones to expand OTT spending. Local advertisers have some familiarity with OTT, even if they’ve never used it. The objections to OTT often come down to making the content. Thus, you’ll need a message about how to do it with ease.

Handling Objections to OTT/CTV

You’ve likely heard from many local advertisers that they don’t have the means to create video content. Thus, they end the conversation. However, you can counter this objection by presenting them with solutions. It’s also a good idea to remind them of the value of OTT/CTV and that a failure to embrace it leaves it open for domination by competitors.

So, how do you solve the content objection?

• Find a local production company to be your partner that can facilitate video development at a reasonable price.
• Introduce business owners to online platforms with stock videos that are easy to customize and create.
• Advise them to repurpose old videos with some edits.
• Suggest they shoot the video themselves, and provide ideas for the message.

As streaming now dominates traditional viewing, your advertisers have a unique opportunity to expand brand awareness and acquire new customers. However, content isn’t their only concern.

Addressing Other Concerns

Your customers have more questions about OTT besides content. They may have further apprehensions about how it works. Explain to them that placing these ads is just like the structure for display ads.

Another point to make is that inventory in this channel is abundant. This translates to ads being more likely to accompany relevant programming. Because of better targeting, they also aren’t “wasting” impressions and are likely to see greater ROI as a result. They’ll know exactly how the campaign performed when you use a third-party digital platform that creates reports with metrics like total impressions, watch rates, clicks, CTR (click-through rate) and more.

OTT/CTV also has advantages over other digital tactics. Most of that has to do with the association of where the ad plays. In social media feeds, you don’t have much control over where an ad will play and if it’s alongside content that may be controversial or inappropriate. OTT/CTV is also a medium that engages the senses with visuals and sound, creating stronger recall connections versus text-only ads. All digital tactics can deliver value for advertisers, but if there is a debate on where to route dollars, OTT/CTV should be a top consideration.