The media landscape is an ever changing one, with new opportunities and trends emerging almost daily. These opportunities can create different ways for a brand to reach its desired target audience. While digital advertising has been at the forefront of these trends, as the technologies and capabilities continue to grow and improve, one trend that appears to be taking the advertising community by storm is Over the Top (OTT).
OTT advertising is the delivery of film and television content via the Internet using mobile phones, tablets or desk top computers; and, yes, even your smart television. OTT is extremely popular because it does not require users to subscribe to traditional cable, satellite or pay TV services to view content. In fact, estimates put long form viewing via OTT at 20 percent of all television viewing or nearly double that of 2016 by 2019. Of those using OTT more than half will use two or more services and it’s not just a phenomenon for millennials!
According to Nielsen’s Q1 2016 Total Audience Report, in the first quarter of 2016, there were an estimated 60 million people reached each month via OTT viewing. Of this number 77% were between the ages of 25 and 64 with 54% between 35 and 64. Millennials account for 37% of people reached.
With these facts, it’s easy to see why OTT advertising is an extremely lucrative opportunity for a brand to get in front of its target audience! But, how?
One of the new sources of OTT programming is Premion, a division of Tegna Inc. Premion is an OTT streaming service that facilitates your company’s ads alongside premium branded long form content on networks like ESPN, CNN, Fox News, HGTV and FOOD Network. The service has partnerships with a multitude of content aggregators, including Crackle, Sling, Pluto, Xumo, and Tubitv representing more than 80 partners and networks.
If your company were an advertiser on Premion, you could tap into content that is being streamed on a mobile device, tablet, desktop or television, either through subscription based television apps, or directly through network apps. And, unlike most other streaming options for long form content, Premion inventory wouldn’t limit the advertiser to one cable provider’s customers. Meaning, as an advertiser, you could reach any user accessing content no matter what provider they access their content or network through; that’s powerful! Add that to the ability to run :15 and :30-second commercials, that are non-skippable, combined with selective targeting and your business will find a way to hone in on its desired audience for the specific objective in mind.
In short, OTT viewing puts commercials in play when the viewer wants to watch versus when the actual programs air. The difference will necessitate a change in how a media buyer purchases television. It opens opportunities brands have been searching for, but it will mean changing your thinking with regards to buying advertising time.
If you’re looking for more information on OTT advertising or want recommendations on how to make it work for your company, contact our media department! We’d be happy to help.