OTT advertising is an advanced programmatic technology that focuses on providing viewers with individualized ads on their TVs while watching the same program or show. OTT ads are a targeted ad delivery online connected to TV sets.
Advancements in OTT ad technology enables advertisers and businesses to reach their target audiences and expand their reach. Research shows that OTT ads will increase revenue by 60% in the coming years. Therefore, companies need to focus on learning and implementing OTT ad methods and be aware of the trends described below.
1. Market Expansion
Although the business world shifts to the online platform, OTT advertisers focus on using the traditional TV methods, enabling companies to realize the significance of investing in OTT technologies to expand their reach and streamline customer engagement strategies.
A recent research report shows that companies focus more on connected TV (CTV) advertising strategies, and the market saw a whopping 25% increase in 2020. Nearly 57% of digital ad companies will make significant investments in 2021 and use OTT platforms to expand their reach, acquire new customers, and boost their overall marketing ROIs.
2. 5G-based Network Technology
Digital advertisers will take advantage of the 5G internet and networking capabilities in 2021 to streamline their OTT ads. The 5G will provide advertisers with fast-speed internet and networking, allowing them to serve ads effectively. Research highlights that the 5G technology is 100 times faster than the current 4G network.
Therefore, advertisers must acquire and practice the 5G technology to successfully publish their OTT content. Another study shows that about 29% of consumers will pay more money if they achieve a more streamlined video quality on mobile devices.
Because 5G is high-speed and reliable, advertisers can target users with individualized ads because viewers prefer decreased buffering. However, the 5G technology also has certain downsides, such as restricted signals due to walls, roofs, and other barriers. Otherwise, it is a perfect opportunity for OTT advertisers to optimize their advertising operations and reach their target audiences.
3. Accessibility to Extra Bandwidth
Technology companies have made substantial efforts to implement innovative bandwidth strategies in 2021, allowing extra bandwidth to stream high-definition (HD) and 4K videos. Experts say that the OTT advertisers will focus on virtual reality and 4K streaming in 2021.
Bear in mind that new networking capabilities with extra bandwidth and 5G fast internet will enable viewers for 360 live streaming. Virtual reality (VR) technology will trickle more into the OTT industry in 2021, allowing advertisers to standardize individualized TV ads.
4. Live OTT Ads
According to Fast Company’s research report, about 1.3 million people in the U.S canceled their TV cable subscriptions in 2020. On the other hand, more and more people prefer live streaming services. The report concludes that consumers for live streaming services increased by 300% in 2020, and the figure is expected to grow more in 2021.
Therefore, there is an incredible opportunity for OTT advertisers to take advantage of live streaming services and design ads to reach their target audience. According to Data Re-Portal, over 4.20 billion people use social media networking sites globally, meaning advertisers can reach their target audience by placing individualized ads in social media live videos.
5. Hyper-localization of Ads
Hyper-localization refers to creating content based on demographic or location-based data, allowing OTT advertisers to narrow their ad placement and reach their target audience in a specific city or region. The main advantage of hyper-localization is to achieve an additional personalization layer in the advertisement.
Thanks to the innovative localization methods, OTT advertisers can target a specific location and place personalized ads effectively, leading to a reliable and affordable advertising strategy. Therefore, OTT advertisers should focus more on acquiring hyper localization technologies in 2021.
Conclusion
OTT advertising is an effective method or strategy to reach your target audience with precision. It enables you to reduce investments in TV ad-buys and pay for the actual ad views. That way, you can track your viewership, streamline your strategies, and make your ads more personalized in real-time.
OTT ads lead to more control, which eventually increases your overall advertising ROIs. Make sure you focus on the trends mentioned above to reach more audiences and grow your business.