What Is OTT Advertising: Definition, Benefits, Challenges, and More

by | Jul 24, 2023

If you’ve ever seen a commercial on a streaming platform like Hulu or watched a Twitch livestream, you’ve experienced over-the-top advertising (OTT ads) firsthand. Unlike traditional TV advertising, OTT ads don’t require a cable or satellite subscription for publishers to reach viewers. All you need is an internet-connected device and streaming content. 

Here’s more on OTT ads and why they’re such a powerhouse in the digital ad market.

 

OTT Advertising Definition

An OTT ad is a digital advertisement that is delivered through an internet-based platform instead of traditional television. This type of advertising has become increasingly popular in recent years. More and more people are cutting the cord and ditching their cable TV subscriptions in favor of streaming services like Netflix, Hulu, and Amazon Prime Video.

OTT ads are usually shorter than traditional TV commercials, and they’re often targeted to a specific audience based on factors like age, gender, location, viewing habits, and interests. They can also be interactive, which allows viewers to take action directly from the ad (such as clicking through to a website or purchasing a product).

 

Benefits of OTT Advertising

Overall, OTT advertising is an effective way to reach consumers who are spending more time streaming content online. And because these ads can be targeted and customized to each viewer, they have the potential to be even more effective than traditional TV commercials.

These capabilities offer a few key advantages compared to other forms of advertising:

  • Less Budget Waste: With better ad targeting, you can avoid showing your ad to people who aren’t likely to care about it. Only pay to show your ad to your desired target audience and keep your ad budget in check.
  • Increased Engagement via Improved Relevance: Better targeting leads to better engagement. When viewers see ads they care about, they’re more likely to respond. What’s more, it’s easier to measure engagement via OTT ads compared to traditional TV advertising.
  • Brand Protection: OTT advertising ensures your ads are placed in front of the right audience and that your message is not diluted by other advertising. This helps you keep your brand image intact and avoid getting lost in the noise.
  • Greater Accountability: With plenty of data tracking available, OTT ads help marketers and advertisers gain more accountability. They can prove their efforts are working, optimize future campaigns, and justify getting a larger share of the budget.

 

Challenges of OTT Advertising

Despite its popularity, OTT advertising isn’t without its challenges. 

In a research report with IPSOS, Infillion found that 61% of consumers will divert their attention to something else when an ad airs. There’s also fierce competition for visibility. Small brands are competing with global names for inventory. With OTT advertising becoming a growing practice, companies need to bring their A-game at all times by working with a premium campaign planner like Infillion

 

Should You Go All in on OTT Ads?

OTT ads are giving brands new ways to connect with their target audiences as traditional channels lose their luster. The benefits can far outweigh the possible downsides, especially with a partner like Infillion. We bring a full technology suite to help you craft dynamic creatives and experiences and build real connections.

Learn more about products like TrueX and InfillionX.

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