The days of watching your favorite TV show at its scheduled time are slowly but surely coming to an end. With the advent of on-demand and over-the-top (OTT) content, people are now more inclined than ever to watch their favorite shows when and how they want.
And cable providers aren’t even competing anymore–98% of Gen Z use streaming services, as do 95% of millennials. So, it’s not surprising that OTT and CTV ad spnd will reach $14.9 billion by 2023, according to eMarketer.
What Is OTT Content?
Over-the-top (OTT) content refers to any audio or video content that is delivered over the internet, without the need for a traditional cable or satellite TV subscription.
OTT services are typically delivered through app-based platforms, which can be accessed on smart TVs, streaming devices, and mobile phones. While some OTT providers offer their services for free, others operate on a subscription-based model, with users paying a monthly fee to access a library of content.
The rise of OTT has been further driven by the increasing availability of high-speed internet connections and the decreasing cost of streaming devices.
OTT services have also benefited from the popularity of social media, which has helped to promote new content and drive audience engagement.
But what makes OTT content so much better than linear TV? Let’s take a look at three reasons why people are ditching their cable boxes for good.
1. OTT content is more flexible than linear TV.
With OTT content, viewers can watch what they want, when they want. There’s no need to worry about missing your favorite show because you forgot to set the DVR–you can just watch it whenever you have some free time.
Additionally, OTT content can be watched on any device with an internet connection, whether a smart TV, a laptop, or a mobile device. This means that viewers can take their favorite shows with them wherever they go.
Linear TV simply can’t compete with that level of flexibility.
2. Streaming services offer more (and better) options.
There are now more streaming services available than ever before, and each one offers its own unique selection of content. This means that there’s something for everyone to watch, no matter what their interests are.
What’s more, many streaming services–such as Netflix and Hulu–create their own original programming that can’t be found anywhere else. So, if you’re looking for something new and different to watch, OTT is the way to go.
By contrast, linear TV only offers a limited selection of channels, and most of the content on those channels is repeats of what you’ve already seen. And some of those channels are blocked by an additional paywall, which only adds to the frustration.
Even cable providers are starting to recognize that their offerings are no longer enough to attract viewers. That’s why many of them are now offering their streaming services–but they’re still not quite as good as the ones available to everyone.
3. OTT content is more affordable than linear TV.
Logic would follow that the better product would cost more (and that it would be worth the money). But with TV content, the opposite is true.
The standard Netflix subscription costs $15.49 per month, while the average cable bill costs $217.42 each month. For the cost of one average cable bill, streamers can have four different subscriptions and pay their phone bill–and they would still have money left over.
Since cable costs nearly 15 times the amount of a streaming subscription (on average), it’s no wonder that people are cutting the cord in droves.
What Does This Mean for Marketers?
The shift from linear TV to OTT content is great news for marketers. It means that they now have a more efficient way to reach their target audiences.
With OTT content, marketers can use targeting and personalization to deliver their ads to the right people at the right time. Additionally, they can use data-driven insights to optimize their campaigns for maximum impact.
All of this results in better ROI for marketers–and that’s good news for everyone involved.
Benefits of over-the-top advertising include:
1. Better Targeting
With the advent of online video and Over-The-Top (OTT) advertising, marketers can now target specific demographics, interests, and even behaviors.
OTT platforms like Roku and Amazon Fire TV offer marketers a wealth of data that can be used to target ads more effectively than traditional television. For example, Roku’s platform allows advertisers to target viewers based on their location, gender, age, and even device type.
This data can be used to create highly targeted ad campaigns that reach the right people at the right time.
2. More Format Options
OTT advertising also gives marketers more format options to choose from.
In addition to traditional video ads, OTT platforms offer opportunities for interactive and native advertising. This allows marketers to create more engaging ad experiences that are less likely to be skipped or ignored.
Additionally, it gives them the chance to experiment with new formats and find what works best for their products or services. For example, skippable pre-roll ads are ideal for building brand awareness, while interactive ads are perfect for driving product consideration.
3. Increased ROI
Perhaps the most important benefit of OTT advertising is that it offers marketers a chance to increase their return on investment (ROI).
Because OTT platforms offer more data and better targeting, marketers are able to create ads that are more likely to be seen by people who are interested in what they have to offer. This leads to higher conversion rates and a better ROI for marketers.
Final Thoughts
There are plenty of reasons to chose OTT content over linear options like cable TV. From the lower cost to the better targeting, OTT is the clear choice for viewers and marketers alike.
For marketers and advertisers, this means that it’s time to start thinking about how to best take advantage of this growing platform. OTT offers a unique opportunity to reach and engage with your target audience in a way that linear TV simply cannot match.