Our lives are centred around streaming. In 2023, it was estimated that 18.8 million households, or 65.4% of the United Kingdom’s population, have access to streaming subscriptions, such as Netflix or Amazon Prime. Meanwhile, the overall streaming industry is growing at an unprecedented rate; it is estimated that the market could grow by more than 20% in 2024.
This is, of course, driven by an increasing demand for diverse and on-demand content, which traditional media simply cannot match. Gone are the days where people sit on the couch after a long day of work and take thirty minutes scrolling through the channels – only to find that ‘there’s nothing on TV’. Fair enough, we all spend thirty minutes trying to find what to watch on Netflix, but it’s not exactly like we’re short of choice. And we do find something in the end, that’s the key difference! Quite simply, as more and more people cut the cord with cable TV, streaming services are rapidly becoming our primary choice of entertainment.
But, in the absence of traditional advertising systems, do you ever wonder how these huge streaming services make money? Sure, you pay your monthly subscription fee, but sometimes it feels unbelievably affordable in contrast to the associated costs of consuming more traditional forms of media. Subscription fees alone don’t paint the full picture. These platforms have a variety of revenue-generating strategies, from strategic partnerships and exclusive content deals to sophisticated data analytics that enhance their value propositions.
The Rise of OTT
This all comes back to the fact that streaming services operate in a completely different market to traditional television – a digital content style that is referred to as ‘OTT’.
In the United Kingdom, many might be hesitant to guess that “OTT content” actually refers to “over-the-top content”, but it does. In the context of digital marketing, over-the-top media refers to any service offered directly to consumers through the internet. It bypasses and does not include any form of broadcast, cable, or satellite television platforms. Over the last few years, OTT platforms have been disrupting the media landscape by offering unprecedented convenience and choice. They allow viewers to watch what they want, when they want, without the constraints of broadcast schedules.
This type of media content, quite simply, is the future. A recent survey indicated that 74% of participants aged between 18-34 consume significantly more OTT content than traditional cable TV. You can only imagine this figure will drastically increase further in the coming years, especially with the development in mobile technology. Smartphones and tablets, of course, have already played a significant role in the shift toward OTT content, offering a level of accessibility and portability that significantly increases the opportunities for media consumption. The integration of advanced mobile apps also enhances this experience. OTT platforms like Netflix, Amazon Prime, and Disey+ offer user-friendly apps with features including offline downloads, personalised recommendations, and multi-device synchronisation.
But as OTT content continues to grow in popularity, it’s not just changing how we consume media, but how businesses approach the subjecto f advertising. Traditional television adverts are becoming less effective as viewers move online, creating a unique opportunity for more detailed and focused advertising strategies.
OTT Advertisements
Traditional cable television adverts are standardised; all viewers receive the same adverts irrespective of their buying behaviours, demographic, or personal interests. However, OTT advertisements that appear during YouTube, Twitch, Amazon Prime, or any other internet-based stream service, are much more sophisticated and targeted specifically at the individual consumer’s demographics.
It is a significantly more personalised approach to advertising in comparison to what is familiar with traditional cable television adverts. OTT adverts aim to enhance both the viewing experience of the consumer, who views adverts that are considered more relevant to them, and the advert providers, who can target their adverts at those who’ll be most engaged.
How Do Businesses Benefit from OTT Adverts?
Of course, it all depends on the strength of your analytics. A strong OTT platform that generates key insights and analytics for you to integrate into your campaign will pay dividends, while one with limited scope will not. The ability to track and analyse viewer behaviour in real-time has become a must in 2024. As with any kind of digital marketing, it is fundamentally useless without having an understanding of your key insights and analytics to target adverts and specific types of consumers.
Without doing this, businesses can’t adapt their advertising strategies quickly, which means they can’t remain relevant and effective. With so much competition out there, this is surefire way to fall behind and fail to capture your audience as it is now. Advanced analytics tools on OTT platforms provide detailed demographic information, viewing habits, and even engagement levels. This then allows a business to create targeted ads that resonate with specific audience segments.
When a business get’s OTT advertising right, it can be incredibly rewarding. When a business nails OTT advertising, it experiences increased brand visibility, engagement, and conversions. Targeted campaigns reach the right audience at the right time, leading to higher ROI. By leveraging the vas amount of data available on OTT platforms, businesses can also refine and optimise their campaigns – an iterative process that not only improves ad performance, but helps in understanding the preferences of their audience. By accurately improving the personalised nature of OTT platforms, businesses promote stronger connections with viewers, driving brand loyalty and long-term customer relationships. In the long run, this then fosters a loyal customer base that is far more likely to engage with the brand. Another mus if you’re looking for sustained business growth.
