Busting the Most Common OTT Myths—Part 2

April 23, 2020

Last week, the first post in our two-part blog series examined the truth behind some of the biggest OTT myths—including the belief that OTT advertising is overly complicated (it’s not), the assumption that linear TV no longer matters (it does) and the suggestion that OTT can’t be measured for performance (it can).

This week, we’re busting even more myths:

MYTH #4: OTT performance is “one size fits all”

FALSE. Just like performance can vary widely from advertiser to advertiser, it can also differ greatly from publisher to publisher. The OTT platform that works well for one brand won’t necessarily work for another (even within the same advertising category). To further illustrate this point, data from TVSquared clients shows that response rates between OTT providers can actually differ by as much as 5x! Advertisers also need to be aware of ad frequency, which can build quickly and, ultimately, impact performance significantly.

MYTH #5: OTT distribution is inherently unscalable

FALSE. It’s true that distribution at scale is a pain point for many advertisers due to OTT’s fragmented nature. Guaranteeing that an advertising campaign works across multiple different OTT services can take a great deal of resources (and time) to do. With that being said, the technology does exist to take away the friction from this process, ultimately making OTT more scalable. 2020 is shaping up to be the year that we see OTT scale, as TV programming everywhere becomes driven by performance.

MYTH #6: Audiences don’t like watching ads on OTT platforms.

FALSE. Just like linear TV, it’s not that audiences dislike watching ads in general—they dislike watching ads that are repetitive or irrelevant. Due to this, it’s vital that advertisers consistently measure and optimize their campaigns to guarantee that their spots are reaching engaged, response audiences. Additionally, if audiences are given the option of either paying a higher price for ad-free OTT content or paying a lower fee for ad-supported content, many will choose the latter, more cost-effective option. A study from the IAB revealed that 73% of adults who watch OTT programming watch ad-supported options, while 45% of them watch the ad-supported services most.

Download our eBook, “Demystifying Streaming in the New TV Era,” here to learn more about how to maximize OTT advertising campaigns.

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