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OTT Advertising: Benefits for Businesses

The OTT industry has become incredibly popular over the past years. Recently, huge corporations have ruled the industry, but today, a plethora of video-streaming businesses are opening.

The OTT industry is evolving. Consequently, it is becoming a great opportunity for brands to monetize their video content having additional revenue by doing that.

Due to the recent changes in the industry, like subscription fatigue and streaming services launching ad-based tiers, OTT advertising is getting more popular. For example, Netflix has two subscription-based payment options. But one includes ads, and the other doesn’t. One costs more, and the other one is available at a lower price.

OTT video streaming platforms can still generate revenue, and advertisers have new options for reaching audiences.

Let’s talk more about the benefits of OTT advertising.

Benefits of OTT advertising

OTT advertising can bring many benefits to video streaming businesses and advertisers.

#1 Wide reach

Many people have a lot of subscriptions to video streaming services. Some of them use ad-based platforms. Maybe, some platforms include ads in all their tiers. Options are rich.

Still, as many people use multiple video streaming platforms, advertisers have many chances to reach these people with ads. Moreover, video streaming platforms are usually available on many platforms and devices, including smartphones, Smart TVs, tablets, and computers.

People have the opportunity to watch videos at any time they want. Due to this availability on multiple gadgets, viewers watch content more often. Consequently, people watch more ads.

#2 More accurate targeting

In comparison to television ads, when they are shown to all viewers, OTT ads are more accurate. You may target specific groups of people among all your consumers. This can help content providers maximize the chances to reach exactly those who can be interested in your product.

A 13-year-old boy and a 27-year-old woman can watch the same movie, but the ads they will see will be different.

You can divide your audience into groups based on age, location, and other parameters. Such measures increase the possibility of reaching people who will purchase your product or service.

Instead of advertising your product or service on television, it is better to use OTT platforms due to their targeting capabilities. Television ads will reach more people but show little profit, while OTT ads can reach fewer viewers with higher profit.

#3 OTT analytics

Professional OTT solutions for video streaming often have OTT analytics functionality embedded. It can show you the performance of the ads on the platforms. It allows advertisers to understand how to enhance ads in future ad campaigns.

OTT analytics can show your mistakes when creating these ads. You will be able to specify the audiences and design more accurate ad campaigns in the future.

#4 No ad blocking

OTT companies work hard so that content providers can generate more revenue with their OTT solutions. When it comes to advertising, it is clear that people can use ad-blockers. Because of them, an advertiser may lose all earnings as they block ad videos. As a result, a viewer doesn’t purchase the service or product.

OTT platform providers came up with a solution to this problem. They implement the SSAI (server-side ad insertion) technology. It helps against ad blockers by making an ad to be a part of a video.

Final Thoughts

OTT ads have more benefits in comparison to television advertising. They can reach more people with higher accuracy, Moreover, OTT platforms have a solution to ad-blockers that viewers usually use.

As these ads are shown more accurately, customers can learn more information about the service or product advertised.

IEMLabs is an ISO 27001:2013 and ISO 9001:2015 certified company, we are also a proud member of EC Council, NASSCOM, Data Security Council of India (DSCI), Indian Chamber of Commerce (ICC), U.S. Chamber of Commerce, and Confederation of Indian Industry (CII). The company was established in 2016 with a vision in mind to provide Cyber Security to the digital world and make them Hack Proof. The question is why are we suddenly talking about Cyber Security and all this stuff? With the development of technology, more and more companies are shifting their business to Digital World which is resulting in the increase in Cyber Crimes.


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