With people spending more time at home in the last year, it’s no surprise that in-home data consumption has grown dramatically. The biggest increase for consumers was in streaming boxes and sticks. This channel includes both free and subscription models. As the spikes in this area suggest, there’s a great case for using over-the-top (OTT) and connected TV (CTV) video advertising to connect with consumers during this time.
Data Indicates a Jump in Viewing of OTT and CTV
A lot of interesting data on OTT and CTV has come out since the pandemic. At the beginning (March 2020), Comscore reported sharp year-over-year increases. Subscription video on boxes and sticks experienced a 53% increase in the number of transactions per household in the U.S. The viewing of free video on these devices was up 21%, as well, during the time period.
Now, we’ve had more time to collect data and for consumers to settle into new habits. The time spent on OTT video continues to increase. The average daily time went from 51 minutes in 2019 to 62 minutes in 2020. The prediction is that this will increase to 67 minutes in 2021.
The market as a media revenue is also growing. Revenue in 2019 was $83.3 billion globally. The expectation is that it will hit $167 billion by 2025.
What Does This Mean for Advertisers?
OTT video advertising is an effective way to stay top of mind and improve brand recall. With more eyes on screens, it delivers lots of opportunities. Advertisers can use the channel to deploy brand awareness and conversion-focused campaigns.
Since OTT ads are visual, it’s a good way for companies to paint a picture based on what’s important to their customers. That could be showcasing clean, safe stores, advising of curbside pickup options or promoting products in demand. However the advertiser transformed in the last year, consumers want to know about it!
Advertisers can also send messages of empathy and compassion to their consumer base, including specific things the business is doing to support the community.
What if an Advertiser Doesn’t Have Video for OTT Ads?
Many advertisers may have concerns about hiring a professional video production company. They may not want additional people in their spaces, or they may be cost-sensitive.
Here are a few tips:
- Work with a production company with access to stock and stock videos that can accurately portray the business.
- Make use of old commercials, videos and images by blending them with new messaging to create an updated ad that reflects the current business model.
- If budget is a concern, they could consider shooting video themselves. There are plenty of subscription-based and freelance resources to help your advertisers with video ads.
Remember that the most important thing about an OTT advertisement is the content. Tone is important, as you want to consider the environment of the pandemic and other social challenges.
Be sure the ad conveys the messaging that will resonate with its audience. Point out how the business can help consumers while including a distinctive call to action (CTA). Communicate important information that the consumer will find of value, depending on what the advertiser offers.
Finally, ensure that the ad grabs the attention of viewers within the first few seconds, so they stay engaged with the message. This engagement can lead to a lasting impression in their minds.
OTT Is a Tactic Worth Considering for Advertisers
With more video consumption and OTT being a preferred medium, it’s an excellent time to discuss it with your advertisers. It can be a powerful way to connect with audiences through vibrant visuals and compelling messaging. It’s a great alternative for advertisers compared to traditional cable TV.
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An OTT Refresher
OTT ads are video commercials delivered to computers, mobile devices, tablets and smart TVs. These ads play before, during and after premium video content such as shows and movies.
Advantages of OTT for advertisers:
- Reaches valued consumers while they stream their favorite programming
- Creates dynamic, visual video ad experiences that drive increased brand recall
- Targets by geography and fills 100% of available screen space
- Offers a chance for a captive audience since most ads are not skippable