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OTT Advertising – What It Is And Why Use It

There’s a lot of talk right now about Over-The-Top (OTT) and Connected TV (CTV), but they’re often confused for one another or the terms are used interchangeably. While they are related, it’s important to know the difference between the two. CTV includes Smart TVs, Rokus, Apple TVs, Amazon Fire Stick, gaming consules, and more. OTT is video content that is served through those connected devices. In short, CTV = device; OTT = video ad.

With OTT, you have the opportunity to reach engaged consumers in a new way by serving video ads before or within streamed content on these connected devices. 60% of U.S. households own a connected device – this technology connects and reveals a more complete picture with the customer at the center. This doesn’t mean that traditional TV is being replaced, but with connected devices, it’s becoming easier to watch both live TV and on-demand video.

While the digital industry continues to evolve, it’s safe to say that OTT is here to stay. Think of it as the next level for TV advertising. The audience is diverse and not limited to tech-savvy millennials, and there are more targeting options than you may have with traditional TV. You can also track OTT in more detail – detailed analytics provide a full look at how many people saw your ad and how many viewed it in its entirety.

OTT is an impression-based product; you’re paying for the number of times your ad is served to a consumer, instead of how you would pay for a traditional TV commercial. Performance is also tracked in real time, allowing us to optimize as the campaign progresses. Over 1/3 of CTV visits are over an hour long, and viewers (on average) complete 98% of video ads*.

We’re living in a digital-first world. It’s important to know where your audience is and how they’re consuming media. OTT combines the power of digital advertising with the content of traditional TV, creating a compelling environment for viewers to engage with your message.

 

*AdWeek.com

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