OTT Advertising: It’s Not One Size Fits All

March 10, 2020

2020 is shaping up to be the year in which OTT goes from tested to trusted, as it becomes a key part of the “media mix.” Why? In addition to TV advertisers across the board wanting to take advantage of viewers they wouldn’t be able to reach otherwise (aka the cord-nevers and cord-cutters), OTT can now be continually measured and optimized for performance, just like linear TV.

For advertisers that may be relatively new to OTT, it’s important to note that maximizing OTT advertising is not as simple as adding a new publisher into the mix. First and foremost, there are a plethora of options (with more OTT platforms continually being announced). Additionally, performance can vary significantly between publishers.

In fact, analyzing data from TVSquared clients reveals that response rates can differ between OTT providers by as much as 5x, while CPMs can vary by up to 6x and CPA by 4x. While keeping this variance in mind, advertisers also need to carefully consider frequency. This can build quickly and, ultimately, impact response rates.

Due to these factors, marketers need to understand that OTT is not one size fits all. What works for one brand will not necessarily work for another (even within the same advertising vertical)—making careful strategies through testing, learning and constant measurement all the more critical.

For a closer look at more of the trends impacting the TV advertising industry this year, download our eBook here.

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