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OTT Media Channels: Why Advertisers Are Paying Attention

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When we think of OTT (Over-the-top) streaming today, we tend to think of its impact by circumnavigating the big third party providers and cable companies of the past. Now, consumers can directly watch the content they want to see, straight from the Internet, without the commercials and other old-school forms of advertising common with media consumption.

Naturally, you’d think it was the death of advertising through television, right?

Well, recent reports paint a different picture.

OTT Advertising

Roku, one of the biggest OTT streaming companies in the world today, revealed that of the 6.7 billion hours streamed over their devices and televisions in the first half of 2017, 43% were supported by advertising. Additionally, Roku reported that 41% of its total revenue from that same period came from advertising. They do this by creating sales teams based on niches obtained from viewership preferences. By partnering with companies like Brightline, Innovid, and True[x], Roku is able to make ad revenue in less obvious ways, which is preferential for viewers tired of the in-your-face commercials.

In essence, OTT advertising is custom tailored to the user, with companies processing their television preferences and aggregating data. With that data, they deliver tolerable ads according to the viewer. For example, someone who watches cooking documentaries will have more cooking related commercials, as apposed to the random commercials that were common with regular television.

The Benefits of Targeted Advertising

Consumers want a custom tailored experience today when it comes to advertising and overall content consumption. Why? Because other brands are catering to that preference, which means to stay competitive, you need to as well. With OTT Advertising, targeted advertising is at the center – and it’s working. Advertisers are now able to:

Build Brand Loyalty: By targeting the perfect consumer for a brand, they will start to develop a brand loyalty to the brands they want to actually follow. With OTT, that advertising nurtures these types of followers.

Target the Right Consumer: Instead of spending more time and money identifying the right consumer, with OTT, the data is already available and yours for the taking.

Spend Money More Wisely: Gone are the days when catch-all dollars needed to be thrown into the air, hoping to reach the right person. Now, advertisers can target their ad budget, knowing they’re spending their money wisely.

Overall, these benefits create more control. Time, money and placement spent more efficiently leads to higher ROI.

Current360

Here at Current360, we know that staying up to date with up-and-coming digital trends is critical, like the explosion of OTT advertising, as more and more individuals ditch cable for their own customized media experience. It’s worth considering this avenue before it becomes saturated with OTT advertisers looking to capitalize from the targeted capability of personalized media consumption.

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