OTT Advertising – Benefits, Challenges, and Best Practices

OTT advertising refers to the display of advertisements when accessing a video-on-demand (VOD) service, such as a transactional, membership, ad-based, or premium VOD service. OTT advertising and online video (OLV) advertising, both fall under the category of video advertising, but can be confusing for most. While OLV advertisements are displayed with video content on websites, OTT advertisements are distributed through streaming devices. Let’s understand OTT advertising briefly in this article.

Benefits of OTT Advertising

Audiences now choose to see ad-supported streaming, which has increased the popularity of OTT services. OTT advertising has also grown in popularity, which has various benefits for advertisers as it:

• Enables audience segmentation based on particular metrics and interests, such as locations or device types, which enables you to better target viewers.

• Reduces unnecessary ad spending by ensuring that those who are most likely to be interested in your product or services see your ads rather than making ads for a large audience.

• Increases engagement by allowing you to re-target adverts to your audience across several platforms.

• Measures and optimize your advertising so you can determine which ones result in more conversions and which ones need improvement for upcoming campaigns.

Challenges for OTT Advertising

Before fully committing to OTT advertising, there are a few things to think about.

OTT advertisements also have a few challenges, such as:

• High competition: It could be challenging for smaller brands to compete with bigger brands that have bigger advertising budgets. However, some best OTT advertising platforms offer plans for each type of business.

• Various OTT platforms: As there are various OTT platforms, each one will have a unique method of content delivery, and some apps will have fewer features than others.

These can be some of the challenges associated with OTT ads, but as OTT platforms will improve, so will the functionality of OTT advertising, which will result in advancements and new features.

Best Practices to Follow for Effective OTT Advertising

There are a few recommended practices to follow if you want to succeed with OTT advertising.

• Prepare it for a variety of devices: When creating commercials, keep in mind that they will appear on a variety of devices, including TVs and phones.

• Choose your audience carefully: Your chances of receiving high engagement will increase if you target and customize your adverts for that audience.

• Be approachable: Be imaginative and relatable when creating advertisements to attract customers to watch them.

• Keep it short: Keep non-skippable ads short and concise (15–30 seconds) to encourage viewers to pay attention to the entire ad rather than look at their phones while it is playing.

• Test and improve: Check the effectiveness of your ads on a regular basis to see if they are working or if any modifications are necessary.

Make sure your OTT advertisements are relevant and appropriate for your audience. When developing the best advertisement to attract your target audience, stay abreast with trends and what your target audience enjoys.