• OTT networks are expected to amass 210.29 billion dollars in annual revenue by 2026
• In 10 years, revenue has increased over 10 times, making it a rapid disruptor in the TV advertising sector
• OTT networks also include online gaming and videos, not just popular platforms such as Netflix. 

‘What are you binging these days?’ is a question that would have had very different connotations in 2010. In the decade since, we now refer to watching an entire series on an online streaming platform or OTT platform as ‘binging.’ And its popular, over 80% of people surveyed in a Nielsen poll said they had used an OTT platform that week.

OTT (Over The Top) platforms are services that allow content to be delivered via an Internet connection. Platforms such as Hulu, Netflix, Disney Plus, HBO Peacock, and others have drastically changed our viewing habits. We can choose to watch what we want when we want. The name OTT comes from the theory that internet-related content is used on top of existing TV and cable viewing audiences. 

And it’s not just major platforms that OTT refers to, it also extends to online gaming and videos. 

There are many ways you can access OTT through devices such as:

• Smart TV’s
• Devices such as Apple TV 
• Xbox and PlayStation
• Computers, tablets, and phones
• Internet-enabled Blu-ray players

The term OTT isn’t always used, and you may have seen the acronyms SVOD and AVOD. These acronyms stand for Subscription on Demand Video and Advertising Video on Demand. Sometimes you may come across the acronym TVOD which is Transactional Video on Demand, otherwise known as pay per view. 

To put these groupings of the monetisation of ad content into context, Netflix is basically an SVOD. The user pays a monthly subscription fee and is provided the content. Netflix does not advertise, and it looks like it is unlikely to in the future. 

Platforms such as Hulu and others are AVOD. They have ads before and after their programs and allow advertisers to pay for ad spots. They do have a paid version that removes ads, so it technically also makes them SVOD as well.

Amazon is all three. They have a monthly subscription fee so SVOD, they advertise on the platform through their Amazon Shopping platform AVOD, and they have some of their content behind a paywall, TVOD. Disney Plus also has a new element of TVOD while being SVOD. Disney is also a PVOD ( Premium Video on Demand) which means they have new releases and high-demand content behind a paywall. Got it? Whew!

Traditional forms of advertising are known as linear media. You turn the TV on and watch at the appointed time. Hence, linear advertising. 

Another acronym that pops up from time to time is vMVPD (multichannel video programming distributors). This refers to streaming services that have paid TV programming (such as Hulu Live, YouTube TV and so on). 

And lastly, a related acronym is CTV (connected TV device to the internet).

Essentially, it’s a brave new world of content delivered by internet connection. Also, most games are also online and played online. While you still need devices such as X-Box to access the online content, it’s all delivered via an internet connection.

 Also, online videos on major platforms are also OTT and can have ads delivered before, during, and after your content is viewed. 

Now for the big question. Can you advertise on OTT platforms?

Can my business advertise on OTT content?

The answer is yes on all platforms that allow ads. OTT advertising is a fantastic way to increase awareness of your brand or product. Depending on your country, you may have different options available. For example, Australia doesn’t have Hulu, a major OTT provider in the United States, that allows for ads. 

A very popular method of OTT video advertising is to place ads on major platforms through streaming platforms such as Vimeo and YouTube. The major benefit of OTT video advertising is the high amounts of targeting you can perform, which isn’t possible in linear TV (traditional media). It’s also an even playing field and can help smaller businesses that have been kept out of the linear TV advertising game due to cost and other factors. 

*Quick note: there is some debate whether Vimeo or YouTube is truly OTT. Some media analysts say it’s not, and others do. Either way, it’s a great way to advertise!

Your OTT strategy is best looked at from an awareness point of view and part of a holistic campaign with other strategies for increasing sales. It is a sad but true facet of video advertising, that few people click on the ads. Viewers will skip any ad if they have the chance. 

Also, just a little tidbit of info....Netflix doesnt allow ads, but is open to product placement.. so it’s worth keeping in mind!

How can I advertise on an OTT platform?

As I mentioned previously, your options for OTT ads will depend on your country and what’s available. 

If you have an OTT platform such as Hulu available that allows ads for the lower cost or free subscription, you would need to contact an agency specialising in ads for that particular OTT platform. 

The most popular OTT platform in the world that is ad-supported is YouTube. YouTube also does offer a subscription-based option that is ad-free as well. But as YouTube use is usually sporadic, many people don’t have a subscription, so more people are likely to see your ad. 

To advertise on the YouTube platform, you need a Google Ads account, and you need to learn how to advertise on YouTube. 

Amazon and Hulu are more of a hybrid with their combination of SVOD and AVOD. Many streaming services have agencies they prefer to deal with. Amazon in particular has a service called Amazon Publisher Services and also uses third-party exchanges which are also used for programmatic advertising. 

If you want to advertise on a gaming platform, there are many experienced digital ad platforms available to help you. 

Is OTT advertising effective?

Amazon itself states that companies that use both online video and display ads have a 150% increase in purchases and a 320% increase in web traffic. So clearly OTT advertising on streaming, video, and gaming advertising is quite successful. 

According to Forbes, OTT is effective due to the benefits of OTT advertising. Such as the fact that OTT advertising delivers advertising straight to the consumer, it’s a targeted niche audience, and due to said targeting ad waste is reduced.  

In a Nielsen poll, over 80% of respondents had used an OTT platform in their week. It has become a crucial aspect of our daily life, which means your audience will be HUGE. Even if you target a subsection of the audience, it’s going to be a fairly large chunk regardless. 

What are the benefits of OTT advertising?

The benefits have been mentioned throughout this article, but I just wanted to sum up all the amazing things OTT can do for you!

• Huge Audience
• Fantastic targeting options
• Great analytics to give you a real-time view of your audience
• Convenient for the user
• Reasonably priced for what you get 
• Is a fantastic strategy to implement with other digital methods to boost awareness and sales

How do I go about planning an OTT ad? 

Before you contact an ad platform to expand into OTT ads, you need to do these 5 things. 

1. You need to sit down and ask yourself:

• What is your ideal platform that aligns with your brand’s values? 
• What content do you want to advertise?
• Do you have experience with creating ads?
• Do you need professionals to help?
• Are you interested in your ad appearing in a certain context, i.e. after a concert or a more general context? A more general context could mean programmatic ads could be the way to go.
• How much do you want to spend on OTT in terms of your whole video budget? Do you also want a display ad and search ad campaign as well? 

2. Once you have these factors nailed down, you need to contact the relevant agencies or third-party publishers. If you want your ad across a myriad of OTT platforms i.e. gaming platforms, online videos, programmatic or third-party publishers are the way to go. 

3. If you want to advertise on a specific streaming platform such as Hulu or Amazon, you are going to have to contact their nominated agency or third-party providers. 

These agencies and third-party providers have a lot of experience with what works and what doesn’t and can tell you the specs required to have your ad approved. 

4. After an initial consultation with your agency or third-party provider, focus on the ad creation. This may take some time to complete. When you have a completed ad, take it to your chosen vendor and work out a deal that suits your audience, needs, and budget. 

5. Ensure that all of your online landing pages are completed and up to date, as they are going to be visited a lot!

The OTT  landscape is one that is rapidly changing and will for some time to come. For companies just learning about OTT, it’s wise to take your time to start with to ensure you have the right audience and platforms. Ask agencies lots of questions and shop around. Find out exactly what it is you are paying for.

How much does OTT advertising cost? 

I will start by saying it varies extremely widely between platforms, and whether you are using an agency or a third-party provider. 

I can definitely say that it’s cheaper than linear TV advertising. 

According to Propellant Media, you can have a monthly budget of $2000 (USD)  and scale up and down from there. You can purchase Guaranteed IO’s (insertion orders) or Programmatic Ad Packages. 

The difference is that with guaranteed placements, your impressions are guaranteed. Some packages actually give rebates if your ad underperforms. Now that’s confidence in your product!

Programmatic Ad buys occur on ad exchanges. The ad exchange sees the user’s history and selects the most relevant ad to the person. Then real-time bidding occurs, and the winning bid secures the best ad for the user. While it sounds complicated, all of this happens in milliseconds. 

If you want total control over your ad placement, I would recommend a Guaranteed IO. You are fixing where your ad will be shown and won’t run the risk of untoward associations. 

The cost for OTT ads is calculated on CPM. It is estimated that OTT ads have a CPM (cost per mille) of $25-$40 (USD) and traditional advertising’s CPM is $40-$200 (USD). 

 Are there any tips for OTT advertising?

1. Stick to 10-30 second ads, with an emphasis on the first 8 seconds. This means you can capture your audience’s attention before they can skip the ad. 
2. Ensure that your content is enabled for all devices. Most video content is consumed on TVs, tablets, and phones. It’s crucial to plan for every type of viewer. 
3. Make sure your ads are authentic to your brand and its values. 
4. You can also personalise your ads to the time of year, i.e. Christmas, summer or spring. OTT ads can be geotargeted all over the world. You can also target by age, gender, interests, location, amongst other data. It’s a very long list, so it’s best to discuss this with your digital agency or ad exchange.

Before you go….

Just one final point to add. This technology is young, diverse, and ever-changing. It’s an exciting time to be part of the OTT revolution, but take the time and research what is best for you, in terms of the platform and the ad exchange, digital agency or a third-party provider can give you.

If you go in armed with knowledge, you can make the best decisions for your business and advertising strategy. 

If you want to enter the new world of OTT advertising, here’s what you need to do:

1. Decide what audience, and platform you want to advertise on. Also, decide what context your ad will be, if you need professionals and your budget. 

2. Once you have these factors nailed down, you need to contact the relevant agencies, such as a digital ad agency, an ad exchange, or third-party publishers. If you want your ad across a myriad of OTT platforms i.e. gaming platforms, online videos, programmatic or third-party publishers are the way to go. If you want to advertise on a specific streaming platform such as Hulu or Amazon, you are going to have to contact their nominated agency or third-party providers. These agencies and third-party providers have a lot of experience with what works and what doesn’t and can tell you the specs required to have your ad approved. 

3. After an initial consultation with your agency or third-party provider, focus on the ad creation. This may take some time to complete. Now you have a completed ad, take it to your chosen vendor and work out a deal that suits your audience, needs, and budget. 

4. Ensure that all of your online landing pages are completed and up to date, as they are going to be visited a lot! Also, check out our digital advertising group and see what everyone is talking about with regard to OTT!

Editor update [05/10/2022]: 

Thanks for reading our article by Renee Rollestone, Content Manager at SavvySME. We hope it has helped you gain a better understanding of Over-the-Top advertising. Members at SavvySME have additional questions on the subject, so we have responded to some of these FAQs below.