OTT Ad Spends Increase As Streaming Content Grows4 March, 2022
Does your marketing mix include OTT? If not, it’s something to consider. In 2021, total OTT ad spending reached $1.3 billion with the biggest spenders being retail, finance, and media companies. OTT is not an advertising trend that’s going away anytime soon. According to a report, 78% of consumers in the U.S. have access to a subscription video service, which means advertisers now have more opportunities to reach those individuals through streaming ads.
What is OTT advertising?
OTT or “over-the-top” advertising refers to ads placed on streaming platforms like Hulu, NBC Peacock, Disney+, HBO Max, Discovery+, Paramount, and more. OTT services don’t need to accommodate a broadcast schedule or geographic limitations like traditional TV does, which is a plus for marketers. While some platforms like Netflix don’t run advertisements, many other platforms do, allowing for marketers to tap into those hard-to-reach audiences.
Why consider OTT advertising for your brand?
With 78% of households in the U.S. that own a connected TV, OTT offers brands an opportunity to reach millennial and gen-z consumers. Oftentimes, these ads will be even more effective when paired with Facebook, Instagram, and TikTok ads. And unlike traditional TV broadcasting, which caters to a very broad audience, OTT services allow marketers to target niche audiences, thus minimizing ad spend waste. Plus, you can re-target your audience through OTT, social media, and more to bring your audience into your ecosystem and increase engagement across different user channels.
If OTT advertising is something you want to consider but don’t know where to start, tapping into industry experts like the team at Vibrant Brands is the best way to get started. We are fully immersed in advertising strategies across multiple channels, leaving your brand with a rich marketing mix. Connect with us today to elevate your marketing!