The advertising industry has undergone many changes over the years. In recent times, the move from Web1.0 to Web2.0 required a significant shift to focus on social media and, later on, to streaming and video content. As we move into Web3.0 territory, advertising is changing even more, and one of the most significant drivers of change is the increasingly popular segment of streaming TV and content.

For advertisers, there’s simply no getting away from it—streaming is where the most popular content already is, and linear TV is on its last legs. The constant and omnipresent connectivity that Web3.0 will rely on means that soon streaming content will be the only content—and we’re virtually there already.

So what does this mean for the advertising industry? One word—opportunity! It’s a different way of doing things but there are more opportunities to reach audiences effectively than ever. Streaming advertising is not only different; it’s more targeted, more creative, and, when done correctly, can seamlessly blend in with streaming content.

Let’s find out more about how streaming content revolutionizes the advertising industry!

OTT Advertising

OTT stands for over-the-top, and it refers to content that is broadcast over the internet instead of via satellite, cable, and older broadcasting methods. OTT content is delivered to all devices connected to the internet, such as mobile phones, smart TVs, computers, laptops, and tablets.

Streaming content such as movies, series, and news are viewed on these devices, often via a streaming device such as Roku, Amazon Fire TV, Chromecast, Apple TV, or Google TV. The content providers are responsible for the programs, including YouTube, NetFlix, Disney+, and many more.

OTT marketing is delivered directly to these streaming devices in various formats, methods, and types. OTT ads are, therefore, the new way to advertise to a digital streaming audience, and it is genuinely revolutionizing the entire advertising industry.

Play Button Audio Video Media Technology Concept

VOD Advertising

While OTT refers to the method of receiving the content (over the internet), VOD stands for video on demand and describes how consumers access streaming content. Therefore, advertisers need to understand the differences between the VOD formats.

● SVOD — Subscription video on demand is content delivered to consumers for a set rate per month. They can watch as much as they want based on the SVOD package they choose with specific content providers like Netflix.
● TVOD — Transactional video on demand is similar to the old pay-per-view cable TV model. Consumers can either rent the content for a specific period or “purchase” it to have indefinite access.
● AVOD— Ad-based video on demand is a model where content is streamed for free with the concession of having adverts play before, during and after content. This model is of particular interest to streaming advertisers as it is a straightforward and more traditional ad placement format.
● PVOD – Premium video on demand — A more recent model, this is a higher-tier subscription option reserved for premium streaming content.

Besides AVOD, the other three VOD models come with their advertising challenges and opportunities. Advertisers need to be creative here as subscription-based services are primarily ad-free. You won’t be able to run your ad before, during, or after a subscriber’s favorite Netflix or Disney+ show, but there are other options.

CTV platforms such as Roku and FireTV include options for advertisers to target consumers during the content selection process. There is also the option of creating sponsored content, a more subtle but expensive way of showcasing your brand or service in a show or creating an exhibition that showcases your brand.

Let’s look at the three OTT options that advertisers have to reach the streaming audience.

OTT Advertising Methods

While there are hundreds of different ways to advertise to streaming audiences in terms of content type, theme, and message, there are three ways to place the ads.

● Programmatic — In this model, advertisers use DSPs (demand-side platforms) to optimize the placement and pricing of the ad automatically. It uses AI and avoids the time wastage and fuss of dealing with negotiations and set prices. The ad placements are secured in ad exchanges and are mostly confirmed via a lightning-fast bidding process. This is a prevalent method for advertisers as its both cost-effective and allows for accurate targeting.
● Platform Direct – Here, advertising is purchased directly from the OTT device provider. As mentioned earlier, going straight through a platform is a way to get some advertising presence around ad-free content. In addition, Roku, Fire TV, and other platforms offer innovative and effective ad placement packages.

 

● Publisher Direct – The most traditional of all the methods, this is where advertisers deal directly with the content provider to buy ads. Publisher direct advertising provides the most control over exactly where your ads will be placed. It is usually more costly than the other methods and is mainly used by more prominent brands. The downside is that you don’t get as much exposure for your ad spend compared to the other two options.

 

Streaming content is here to stay, and it’s becoming increasingly popular as content providers, devices, and formats increase to accommodate the enormous demand. As a result, advertisers can harness OTT advertising to target consumers better than ever before and reach the most captive audience in the entire market. Streaming truly is reshaping the advertising industry, and the opportunities to be creative and innovative are boundless!

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