OTT Marketing is a new and exciting way to get your message out there. OTT stands for “over the top” which means that you are streaming your content over the internet instead of through traditional cable or satellite connections. OTT marketing has been growing in popularity, with more than 700 million people using OTT services like Netflix, Hulu, HBO NOW, YouTube TV, and Amazon Prime Video. OTT marketing is an excellent way to reach targeted leads because it’s so easy to advertise on these sites!
Today, we’re going to talk about OTT, which is over the top media buying, and how it can impact your business. How can incorrect information impact your company and your clients? This is going to be a big deal. This is actually in-depth training. The video above isn’t simply a recording of me speaking in front of the camera. So make sure you bring your pen, paper, and notes since this is something I’m going to give you that might be a tool in your tool bag and help you sell this service as a designer, motion design designer, web designer, or whatever else. This is an evergreen market with room to grow; therefore I want you to be able on taking advantage of it.
Why OTT Marketing?
Without further ado, let’s get down to business and start training immediately. Streaming is exploding in popularity, and it’s one thing for me to tell you but another for me to prove it, and I can’t do that without showing you the data about what’s going on right now with cable vs streaming, so I’m going to talk a little bit about TV as well because there are certain similarities between them all. The OTT market (over-the-top) was worth $121.61 billion in 2019.
You’ve probably seen some of my prior videos where I discuss market size, which is worth a billion dollars. These are enormous figures, but now with OTT we’re talking about $121 billion as of 2019 and it will rise to over $1 trillion–with a “T”. We’re going from a “B” to a “T”, and it’ll be $1 trillion by 2027 when you look at it in terms of compound annual growth rate so that’s what the word “titan” implies when they say titanic they mean one trillion dollars.
OTT Marketing Research
That’s a research study produced by competing market research that found a trillion dollars in revenue, but only $51 of it came from advertising. Netflix is the most popular over-the-top (OTT) service in the United States, with over 30.8% of all subscriptions going to them. There’s no doubt that the United States has a problem with streaming and watching TV, and it’s an issue across the country. You just want to stay at home and binge-watch your favorite shows, and how much time people spend doing so will astonish you. I have to tell you that I spend about four to five hours every week, which is approximately half of what most people in society do.
OTT Marketing Reach
The reach of the OTT platform is incredible. It’ll blow your mind. There are far more streaming contracts in the United States than people, with over 340 million OTT contracts, and there are only 330 million individuals. That’s a study conducted by ampere analysis worldwide, which found that 771 million consumers purchase a streaming service, which is nearly 40% higher than the previous year. Strategy Analytics completed it. What are the most popular streaming platforms? Many people want to know what these are, so that’s a really important statistic. Some vital information about the world’s most popular streaming sites: YouTube, Netflix, Hulu, and HBO are among them; Amazon Prime Video is one of your go-to options if you’re looking for an alternative to Netflix; Peacock TV is another one; Disney Plus and of course Apple TV round out the list.
Due to streaming’s capacity to micro-target its customers, for example, a 17-year-old boy and a 32-year-old woman may stream the same episode of Bob’s Burgers yet view entirely different advertisers. They can target a video game console advertisement to a teenager and a cruise package to a woman, so the amount of streaming potential not just on TVs but also on video game consoles has expanded. You may now target individuals by age, gender, location, income level, education level, ethnicity, and importantly the time of day they’re using these platforms. This is a major difference, therefore it’s critical that you comprehend how important OTT has become. Cable advertisements do offer a lot of power, as well. I’m going to talk about that here in just a minute, but I really want you to know these numbers and know these stats to prove what I’m going to talk about.
OTT vs Television
One of the things I’ve wanted to discuss in this article, as well as OTT, is television. Because it isn’t dead, there are a lot of myths going around that claim that because there are so many core cutters in their arms that tv is dead. Many people are ditching core TV and moving to OTT streaming services, yet they still spend 54% of their weekly viewing time on network and cable television from Comcast, which is the biggest cable provider with over 22 million subscribers.
The truth is that they’ll have to change, since millions of Americans are ditching their cable subscriptions at a higher rate than ever before and switching to streaming services like Netflix and Hulu. Some providers already offer streaming companion apps for their services, like Charter. In 2020, It is estimated that 55 million individuals will have stopped paying for core television by 2030. If you combine television with streaming, the worldwide population of TV and video streaming devices has surpassed one billion devices. However, since televisions are dominated by the world’s largest corporations, their costs may be difficult to access for a small business owner, especially a mom-and-pop shop. Streaming gives us a fighting chance in the game of streaming on television.
If you have the funds, television is a fantastic option. But you must be consistent, and it’s also difficult to keep track of. I want you to understand that streaming is where everything is going, but TV will always be here. I don’t believe it’ll ever be totally gone, but it’s certainly trending in that direction, and if companies like Comcast don’t adapt they’ll wind up becoming Blockbuster-style fallen giants.
How to Use OTT Marketing
You came here because you want to make money with OTT, and you’re wondering what the revenue potential is for OTT video advertising. Ad revenues of $119 billion are expected by 2023, accounting for 51 percent of all OTT revenue. When watching OTT content, 40% of users actually stopped what they were watching in order to go online and look at or even buy that product, which is pretty amazing given that they can stop it. You can’t stop standard television without some intermediary device like a TiVo.
People are choosing to pause their watching of streaming video online in order to make purchases, which is a lot more than they were doing recently. That was actually a statistic revealed by Open X. This is a significant development. 40% of consumers who watch streaming videos online buy the items being advertised to them.
OTT Marketing Tip: Video Is Key
The first and most important tip is that you must be good at video, as companies such as Squatty Potty, Purple Mattress, Dr. Squatch, and Dollar Shave Club have mastered the craft of storytelling and capturing an audience with viral videos. You’ll need to spend more money; a significant sum will need to be set aside for video production.
The more money you invest into a video, the greater your returns and revenue potential are. It’s really critical that you don’t cut corners when it comes to this part, and that you instead spend some time planning ahead of time. Storyboarding it and having a good script in place are the keys to producing something viral that people will want to share. Making shareable content is a priority!
OTT Budgeting Tip: Be Realistic
The second thing I’d like to mention is establishing a realistic budget if you believe you’ll invest a thousand dollars each month in the OTT market. You will be wasting money if you think you’ll enter the sector for a thousand dollars each month. You will need to enter the OTT market with at least $5,000 but without going over $10,000 a month. My professional advice is to come in with at least $10,000 per month, and for at least three months.
So, that means you’ll need to spend at least thirty thousand dollars for an OTT streaming campaign the correct way if you want good exposure because you’re competing with the name brands, video game companies, and dating sites. You must compete with the most well-known businesses in the world like as on TV, so it’s critical that you play with the big boys and have larger budgets. If you aren’t ready for that, there are various alternatives for you. And over time, you can build a budget toward OTT marketing.
OTT Campaign Tip: Know Your Format
The last aspect is the third piece, and this is where I see a lot of people make mistakes. The difference between a branding campaign and a revenue generation campaign relates to the type of campaigns that you’re running. I’m not talking about politics. Rather, I’m referring to marketing strategies that are designed to create income through the door versus pitching your brand and keeping it top of mind.
Understanding the difference between awareness and education and when to use one over the other is critical. How to utilize them, as well as how often, is extremely crucial. TV advertising may be useful for branding, but it can also generate a lot of direct response sales. That’s why I want you to make effective use of it because that’s what will get you top of mind attention if you’re a big firm; you’re just trying to write things off and put money somewhere where it will bring you top of mind awareness. A branding campaign on OTT can be really beneficial for businesses like yours that are looking to increase brand recognition while lowering costs.
This, in a nutshell, is OTT and TV. I wanted to give you actionable knowledge on how you may use it in your company and how you can make the most of the campaign. I’ve shared some of the methods you can use to do it as well as what they’ll cost, so hopefully, that was useful for you guys. Thank you very much for taking the time to read this; I’ll see you next time. My name is Adrian Boysel, and as usual, keep looking up.