{"id":37584,"date":"2023-01-02T09:00:53","date_gmt":"2023-01-02T01:00:53","guid":{"rendered":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.oom.com.sg\/?p=37584"},"modified":"2023-07-28T17:03:19","modified_gmt":"2023-07-28T09:03:19","slug":"ott-advertising-guide","status":"publish","type":"post","link":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.oom.com.sg\/ott-advertising-guide\/","title":{"rendered":"What Is OTT Advertising And Marketing: A Beginner\u2019s Guide"},"content":{"rendered":"

Every <\/span>advertising campaig<\/span>n is crucial since it can drive traffic, generate leads, and earn conversions. TV viewership used to be the highest source of exposure for marketing. However, for the last few decades, there has been a decline in TV viewership.\u00a0<\/span><\/p>\n

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The main contributing factor is the internet. <\/span>Insider intelligence has reported that <\/span>44% of viewers<\/span><\/a> claimed that online streaming has caused them to watch less TV.\u00a0 <\/span>Now that 69% of the global population has internet access, it continues changing the media landscape as online streaming platforms persist, bypassing the TV market.<\/span><\/p>\n

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The popularity of online streaming platforms has given many brands an alternative marketing channel to showcase their business, products, and services through <\/span>OTT advertising<\/span>.<\/span> Before going into detail about <\/span>OTT ads<\/span>, let us first discuss what it is and why it has been gaining so much attention from several brands worldwide.<\/span><\/p>\n

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What Does OTT Stand For In Advertising?<\/span><\/strong><\/h3>\n

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The OTT\u2019s meaning is over the top advertising.<\/span> They are like a <\/span>TV <\/span>commercial, but the video will get streamed on <\/span>OTT services<\/span>\/platforms like HBO Max, Netflix, and Disney Plus, which all bypass the cable, broadcast, and satellite TV channels.\u00a0\u00a0<\/span><\/p>\n

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Since online streaming platforms are accessible online, viewers can watch films and series anywhere and anytime on various devices such as tablets, smartphones, laptops and smart TVs. Those who want to watch via online streaming platforms need to sign up and subscribe to one of the streaming plans they offer.\u00a0<\/span><\/p>\n

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OTT ads<\/span> are new and usually shorter than traditional TV ads. Viewers will have a 90-second or two-minute ad break, and they can see a countdown clock on the video, informing them when the <\/span>OTT ads<\/span> will end.\u00a0<\/span><\/p>\n

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For example, in this full movie uploaded by a verified film studio channel, there are two 15-second ads in the beginning, middle, or end of the full movie.<\/span><\/p>\n

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\"An<\/p>\n

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An ad break on HBO Max showing the remaining seconds of the ad.<\/span><\/i><\/p>\n

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Image retrieved from AdWeek\u2019s article titled <\/span><\/i>We Spent a Day Watching HBO Max With Ads\u2014and Here\u2019s What We Found<\/span><\/i><\/a><\/p>\n

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Comparison of OTT Platforms<\/span><\/strong><\/h3>\n

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Netflix<\/strong><\/span><\/h3>\n

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\"Netflix\"<\/p>\n

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Photo by<\/span> Thibault Penin<\/span><\/a> on<\/span> Unsplash<\/span><\/a><\/p>\n

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Although <\/span>Netflix was founded in 1997<\/span><\/a>, the company began its streaming services in 2007. Netflix first launched its OTT service in 12 countries with 1000 titles, and over the years, Netflix started making original films and shows in 2012.\u00a0<\/span><\/p>\n

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DISCOVER:<\/b> The Marketing Success of Netflix & Strategies We Can Learn From It<\/span><\/a><\/p>\n

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Netflix’s viewerships continue to grow as it expands to several countries worldwide. On 13 July 2022, Netflix announced a partnership with Microsoft and appointed it as a new partner that will help them launch <\/span>OTT ads <\/span>on ad-supported streaming subscription plans.<\/span><\/p>\n

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Like HBO Max, <\/span>Netflix has announced<\/span><\/a> that they viewers will have the option to subscribe to Netflix Basic with Ads plan at USD$6.99 per month. With the ad-supported subscription plan at a lower cost to subscribe and watch shows streamed on their platform starting 3 November 2022. The Netflix Basic with Ads plan will be available in 12 countries: Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the UK and the US.<\/span><\/p>\n

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Netflix ads that are 15 to 30-second long will appear before and after a show or film. Advertisers can target when and where their ads will appear across the platform.<\/span><\/p>\n

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Netflix is also planning to sell 4-minute of OTT advertising to companies per hour.\u00a0<\/span><\/p>\n

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While Netflix has not rolled out the ad-supported streaming subscription yet in Singapore, <\/span>Reuters <\/span><\/a>reported that Netflix is expecting to capture the attention of 40 million users worldwide by the third quarter of 2023.<\/span><\/p>\n

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Disney +<\/strong><\/span><\/h3>\n

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\"Disney<\/p>\n

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Photo by<\/span> Thibault Penin<\/span><\/a> on<\/span> Unsplash<\/span><\/a><\/p>\n

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Disney may have jumped on the bandwagon of OTT services later than HBO and Netflix when Disney announced it would have an online streaming platform called Disney Plus, but it proves that its branding had reached far beyond.\u00a0<\/span><\/p>\n

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READ MORE:<\/b> 5 Things We Can Learn From Disney Plus And Its Marketing Strategy<\/span><\/a><\/p>\n

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According to <\/span>Statista<\/span><\/a>, Disney+ now has 164.2 million subscribers compared to Netflix, which exceeds its initial goal of reaching 90 million users by 2024.\u00a0<\/span><\/p>\n

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But despite unlocking a milestone, Disney Plus is eyeing to unlock another as they will release an ad-supported streaming subscription on <\/span>8 December 2022<\/span><\/a>, which will cost $7.99 per month.\u00a0<\/span><\/p>\n

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Like Netflix, Disney Plus also plans to keep the duration of <\/span>OTT ads<\/span> to 4-minute per hour, and they plan not to run an <\/span>advertising campaign<\/span> on kids’ profiles.\u00a0<\/span><\/p>\n

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HBO<\/strong><\/span><\/h3>\n

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Before HBO embraced <\/span>OTT services<\/span>, it had been a TV programme since the 1960s that made several movies, documentaries, and more. HBO finally entered the online streaming world in 2010 with HBO Go and in 2015 with HBO Now after serving as a premium cable channel until the latter officially dissolved in 2021.<\/span><\/p>\n

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\"HBO<\/p>\n

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In 2020, <\/span>HBO Max<\/span><\/a> (which is not yet accessible in Singapore) replaced HBO Go and HBO Now as the primary streaming services; however, HBO Go is still available in select countries, including in Asia.. HBO Max delivers more shows from HBO, Cartoon Network, Warner Bros., Adult Swim, and many more than the prior <\/span>OTT services<\/span> or platforms.<\/span><\/p>\n

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\"HBO<\/p>\n

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To attract more viewers to watch films and shows on HBO Max, it introduced a much cheaper streaming subscription plan\u2014ad-supported in June 2021, which costs $9.99 per month. When rounded off and compared to HBO Max\u2019s regular streaming subscription plan of $14.99, ad-supported is $5 more affordable.\u00a0<\/span><\/p>\n

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\"HBO<\/p>\n

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For those who are interested in subscribing to the ad-supported streaming subscription, here is a summary comparison of their pricing, along with their starting date.\u00a0<\/span><\/p>\n

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Why Do Brands Advertise On OTT Services\/Platforms?<\/strong><\/h2>\n

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The internet has revolutionised practically every aspect of human life, and its use is now not only for communication but also for amusement. As more people sign up for <\/span>OTT services<\/span> and platforms, brands have thought that releasing their <\/span>advertising campaign<\/span> here will be a terrific opportunity to raise brand awareness.<\/span><\/p>\n

Below are some of the benefits for brands advertising on <\/span>OTT services<\/span>. <\/span><\/p>\n

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\"5<\/p>\n

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1. Reach Greater And Wider Audiences<\/strong><\/span><\/h3>\n

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Instead of watching primetime broadcasts on TV channels, many viewers, especially young audiences, prefer to stream their favourite films and shows on mobile devices. Viewership keeps growing because it is no longer restricted to a certain time period to a specific location. For example, the series Bridgerton can generate an impression and reach many audiences because it is now shown in a particular time slot (8 pm to 9 pm) like on mainstream TV.\u00a0<\/span><\/p>\n

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OTT services\/<\/span>platforms are comparable to a gold mine for <\/span>marketing and advertising<\/span> professionals. Releasing an advertising campaign on ad-supported streaming subscriptions can help them reach mass audiences.<\/span><\/p>\n

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\"Global<\/p>\n

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Retrieved the image of Global Smart TV Household Penetration by Region from <\/span><\/i>Broadband TV News<\/span><\/i><\/a><\/p>\n

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Studies show that over 51% of households worldwide will own a smart TV by 2026, which is why it is not surprising that the OTT viewerships will further increase in years to come. This figure will give <\/span>marketing and advertising<\/span> professionals more opportunities to promote products and services to their target audience. <\/span><\/p>\n

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2. Gain Viewers\u2019 Powerful Micro Data Insight\u00a0<\/strong><\/span><\/h3>\n

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Like Google Ads, many brands can gain powerful data insight on their <\/span>OTT ads<\/span>. After all, they will not only know what type of watching the films or shows but they can also grasp their watching behaviour.\u00a0<\/span><\/p>\n

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Knowing the watching behaviour of viewers enables business owners to create OTT ads and release these at the right time. For example, if a viewer watches romance films or shows more at night, a brand can display romance-themed <\/span>OTT ads<\/span> to inform and entice the said viewer with what they offer.\u00a0<\/span><\/p>\n

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3. Offer Real-Time Report<\/span><\/strong><\/h3>\n

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One of the <\/span>benefits of OTT advertising<\/span> is it offers brands real-time reports of their <\/span>OTT ads<\/span>. Brands that will opt for OTT ads will no longer have to wonder if the viewers have seen their <\/span>advertising campaign<\/span> again.<\/span><\/p>\n

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In most cases, they use pixel-based tracking that can help brands determine where the viewers went after clicking on the O<\/span>TT ads, <\/span>how long they stayed on the brand\u2019s website, and other actions they have done.<\/span><\/p>\n

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4. Programmatic Targeting with Engaging Ads<\/span><\/strong><\/h3>\n

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What makes OTT ads far better than TV ads is that the latter has more relevant and engaging ads. For example, OTT platforms being developed on web infrastructure, OTT ads can add links that can direct the users and <\/span>OTT audienc<\/span>e to your business\u2019 brand websites or the website page of a specific product.<\/span><\/p>\n

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Meanwhile, programmatic <\/span>OTT advertising<\/span> is an ad-targeting solution that helps brands to reach the right audience with the appropriate content. It is the customised and automated process of trading ad spaces between advertisers and publishers. It is real-time bidding on streaming platforms and connected TVs.<\/span><\/p>\n

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Advertisers target their viewers based on their behaviour on the app, such as the content’s genre and language they are watching. For example, if the users have been watching kid shows and animated movies, baby and children’s products are likely to appear.<\/span><\/p>\n

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This feature is perfect for instigating consumer action since they can easily see, research, and browse products.<\/span><\/p>\n

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Furthermore, some OTT ads allow users to take quick surveys without exiting the streaming platforms. The data gathered can be used in targeted <\/span>OTT marketing <\/span>later on.<\/span><\/p>\n

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5. No Ad Waste<\/strong><\/span><\/h3>\n

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People have found ways to indirectly avoid TV ads. For example, during a commercial break, people will switch channels to watch other shows and return when the commercial break is over.<\/p>\n

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In addition, TV ads are not as targeted precisely in a microscopic and personalised way, unlike OTT ads. There is a high chance that brands are placing TV ads at the wrong audience and time slots.<\/p>\n

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All of these result in ad waste. OTT platform marketing is superior because it is not as wasteful as TV ads. For instance, many OTT advertising platforms use unskippable ads. Exiting an unskippable ad means losing your spot on the show. Viewers are unable to fast-forward the ads, either.<\/p>\n

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OTT Statistics That You Must Know<\/strong><\/span><\/h3>\n

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Viewership<\/span><\/strong><\/h4>\n

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In the US, streaming platforms surpassed TV and cable for viewership shares in the second quarter of 2022, according to <\/span>Nielsen<\/span><\/a>.<\/span><\/p>\n

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Streaming platforms got 34.8% viewership, while cable was in a close second spot with 34.4%. On the other hand, the TV broadcast was in third place with 21.6%, while the remaining 9.2% accounted for other platforms.<\/span><\/p>\n

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The average time US OTT users spend on OTT streaming platforms is<\/span> 70 minutes per day<\/span><\/a>.\u00a0<\/span><\/p>\n

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The top OTT streaming platforms in the world:<\/span><\/p>\n

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  1. Netflix<\/span><\/a> – 223 million paying subscribers<\/span><\/li>\n
  2. Amazon Prime<\/span><\/a> – <\/span>200 <\/span>million paying subscribers<\/span><\/li>\n
  3. Disney+<\/span><\/a> – 164 million paying subscribers<\/span><\/li>\n
  4. YouTube<\/span><\/a> – 80 million paying subscribers<\/span><\/li>\n
  5. HBO Max<\/span><\/a> – 76 million paying subscribers<\/span><\/li>\n
  6. Hulu<\/span><\/a> – 42 million paying subscribers<\/span><\/li>\n<\/ol>\n

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    Meanwhile, according to Statista, global OTT users across all platforms are expected to reach <\/span>3.93 billion<\/span> by 2026<\/span><\/a>.<\/span><\/p>\n

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    Ad Investments<\/strong><\/span><\/h4>\n

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    The global revenues for OTT TV are expected to reach <\/span>$224 billion<\/span> by 2027<\/span><\/a>. The most revenue will come from the US, generating <\/span>US$119M<\/span> in 2022 <\/span><\/a>alone.\u00a0<\/span><\/p>\n

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    According to the<\/span> SPotX<\/span> <\/a>report in 2021, the top markets for OTT viewing in the Asia-Pacific region were Singapore, Indonesia, and Australia. However, in the following years,<\/span> OTT advertising t<\/span>rends seem to favour the Philippines, Indonesia, and Australia in terms of consumption.<\/span><\/p>\n

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    In the same report, 35% of OTT viewers made a purchase after seeing the ad on an<\/span> OTT platform<\/span>. Most of them came from Vietnam, Singapore, and Indonesia.<\/span><\/p>\n

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    Apps Growth<\/span><\/strong><\/h4>\n\n

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    YouTube<\/span><\/h5>\n

    Here are YouTube’s key statistics from the<\/span> Business of Apps<\/span><\/a> report:<\/span><\/p>\n