OTT or Over-The-Top streaming is the distribution of content across devices via multiple technologies within and beyond TV screens. So, OTT takes content to streaming boxes and sticks, smartphones, tablets, and other devices.
In the simplest words, OTT is a technology that can facilitate video content delivery via the internet.
The growing opportunities in the OTT industry
With rapidly increasing OTT popularity, the traits of digital media like data, interactivity, and wide reach now exist in the TV ecosystem as well. Content choice has gone to another level of excellence in terms of different formats, pricing models and platforms available for consumers to choose from.
On one hand, OTT is growing as connected TV in homes with the popularity of streaming devices provided by brands like Amazon, Roku, Apple, and Google. Similarly, people keep on increasing their consumption of OTT content via platforms like Netflix, YouTube, Hulu, and Amazon.
OTT penetration is expanding beyond that quickly. The presence of non-linear content has increased the time spent by audiences in watching digital video content. This trend, coupled with the presence of cloud playout providers,is attracting emerging players in the market to launch their own OTT services.
Traditionally, it has been conceptualized that more OTT viewers mean lesser cable users. However, various cable networks are reinventing their services with over-the-top delivery via digital platforms and apps. Such broadcasting companies include Disney, CBS, HBO, and others.
OTT advertising choices for businesses and marketers
With cloud based broadcast playout, the OTT ecosystem now has multiple monetization ways for businesses. The advertising methods on OTT are more interactive, dynamic and addressable. This increases brand recall and engagement, bringing more consumers straight to the conversion funnel.
Major OTT advertising choices are:
- Dynamic ad insertion
- Interactive ads with a higher level of engagement and recall
- Household-level targeting of addressable ads
- Program-based ad exposure
- Branded content
- Custom sponsorships
Why utilize OTT video advertisements:
- On full-screen TVs, OTT advertising offers co-viewing experiences to over-the-top device owners.
- In digital mediums, OTT provides opportunities with dynamic ad insertion for advanced targeting. Along with that, broadcasting solutions deliver monitoring and analytics services to understand audience behavior. With that, streaming services can modify their business approach as per the consumer demands.
- OTT is the best way to reach out to cord-cutters with a diverse range of content.
- Diminished chances of fraudulent activities, because OTT is a controlled, closed ecosystem.
- Higher rates of ad viewing, which increases the exposure and conversions for marketers.
- Presence of third-party services to serve, manage and measure ads.
On the digital platform, you have OTT aggregators like Netflix and Amazon as well as standalone services such as Disney and HBO NOW. Along with that, most cable broadcasters now have their mobile applications to deliver over-the-top content to viewers who prefer flexibility in video consumption.
All these elements collectively create a vast ecosystem of OTT. This ecosystem is growing with new players emerging in the presence of broadcasting solution providers. Launching an OTT business is cost-efficient and quick nowadays.