How Is OTT Media Affecting the Advertising Industry?

OTT media has had a major impact on the advertising industry, especially when it comes to audience engagement. Passive ads playing in the background are becoming less and less effective. Today, OTT advertising is more dynamic, with ads in new places and targeted to audience interest, making them more cost-efficient.

How OTT Media Has Impacted Advertisers

It's no secret that OTT content has disrupted traditional advertising models. There was a time when a commercial could be played on one of the network channels and reach almost everyone. Today, advertisers face a fragmentation of audiences. Viewers are on many different platforms consuming a variety of content, making it more difficult to reach a large audience.

At the same time, viewer expectations have changed. Over decades, audiences grew resentful of commercials playing between their shows. To overcome these obstacles, advertisers need to distribute ads on a diverse platform that allows for advanced targeting techniques. This disruption to the industry has been huge but has created interesting opportunities for a new way forward.

4 Ways OTT Advertising Is Changing the Industry

1. Advanced Data

OTT ads often have pixel tracking in them. This allows advertisers to see data on what actions took place after viewing an ad. This represents more advanced metrics than has ever been available on video content in the past. Advertisers can now measure the impact of their campaigns accurately and use that information to optimize future content.

2. Cost Efficient

Advertisers no longer have to pay a flat fee based on viewership assumptions or historical data. OTT advertisers are able to pay per-view, meaning the actual number of times an ad has been seen. The more well-targeted a campaign is, the more likely an ad is shown to its intended audience. This makes a deeper impact with each dollar spent.

3. Improved Targeting

With OTT content, advertisers can take advantage of highly targeted opportunities with relevant ads. With the right distribution platform, advertisers can use data like intended demographics and content-targeting for greater control over their ads. Advertisers can then create personalized copy that speaks to their audience, knowing it will be shown to the right users. This increases the likelihood of engagement and ultimately improves conversions.

4. Pause Ads

One of the newer features in OTT content is called pause ads. When a viewer pauses their programming, an ad can now appear on the screen. This is a great moment to show an advertisement since it's a new feature to the viewer. This gains their attention and appears at a time when they're looking at the screen.

This also shows them an ad at a time when they're not actively watching. This means they may be more willing to click on another website. If they're waiting for a friend to return from the kitchen, why not click to learn more while they wait?

The advertising industry has been forever changed. Advertisers are able to better connect and engage with their audiences than ever before. Get in touch with Lightcast today to discuss how you can leverage our OTT ad network to reach your goals.