OTT ads, also referred to as streaming TV ads, have become a major trend in the past few years, one reason for which is due to “cord cutting,” which is when households cancel their traditional cable or satellite TV, and rely on streaming services like Netflix. Amazon highlights why this is a big deal for OTT marketing
Over six million households were expected to cord-cut in 2020, bringing the total number of cord-cutter households to 31.2 million. That number is estimated to grow to 46.6 million total cord-cutter households by 2024, or more than a third of all U.S. households.1 This presents a huge opportunity for brands to incorporate streaming TV advertising into their media strategies.
As more and more households are moving beyond cable to streaming services, this has opened up a new marketing channel for advertisers that is growing extremely fast. OTT ads are becoming an important part of many brands’ marketing mix.
Unlike traditional TV ads, the fact that streaming ads are delivered over the internet gives advertisers more granularity in their audience targeting and audience insights. Another key difference is that streaming TV ads can finish with a clear call-to-action (CTA) that drives the user to a website or app.
Although OTT ads typically have more targeting capabilities compared to traditional TV ads, brands still need the right marketing analytics tools in place to achieve the highest ROI on their advertising budget.