CTV-OTT Advertising, is it Worth it?

Let's get going guys! OTT/CTV is on the rise! We view an increasing amount of internet information every day, from trending

TV shows to practical video courses. In actuality, the typical US adult consumes 5.5 hours of TV and online video every day! How then do you cut through the din? The correct audience and the appropriate location for your video on any device must be targeted. 

Even though traditional TV presently dominates our viewing time, many people believe that soon the status quo will change. By 2024, daily linear TV viewing will likely be surpassed by digital video, predicts eMarketer. Also quickly hopping on the bandwagon are brands. According to IAB's "2021 Video Ad Spend and 2022 Outlook" research, ad spending for digital video is predicted to increase by $50B between now and 2025 as marketing dollars migrate to online video.

Not all delivery options are the same, even though more viewing also implies more inventory to serve your advertising. The two primary forms of video advertising are listed below, along with their advantages and disadvantages, so you can choose the one that will work best for your brand.

Two Common Forms of Video Advertising: CTV & OTT Advertising

A consumer uses a connected TV, sometimes referred to as a CTV, which is an internet-connected device, to view video and TV programming online (think smart TV or Roku device). "Over the top" (OTT) refers to videos accessed online rather than through a typical cable box or satellite TV (content you view on Netflix or Hulu). Here are some benefits and drawbacks to consider when implementing CTV and OTT video advertising in your digital marketing strategy:

The Good:

• Because advertisements cannot be skipped, a lot of people will watch the entire video.
• Featured programming must be of the highest caliber for television. While OTT offers mobile, desktop, tablet, and big-screen distribution, CTV only offers big-screen delivery.

The Bad:

• Greater CPM (cost per mille) compared to other video advertising formats.
• Most inventory cannot be clicked.

Pre-Roll Video Advertising

Pre-rolls, which typically last between 15 and 60 seconds before featured web videos, are referred to as video commercials (Look no further than YouTube ads). Many people think pre-roll commercials are highly useful, however before you adopt this strategy, evaluate the advantages and disadvantages of pre-roll video advertising:

The Good:

• Possesses a large inventory.
• Offers a reasonable price.
• Has capabilities for landing/location pages and CTR (click-through rate).

The Bad:

• An inferior VCR (video completion rate).
• Able to function in user-generated material.

Marketers, are you ready? Utilize video marketing to reach your audience!

As more businesses use video in their marketing plans, firms are seeing the power of video marketing to increase audience engagement and consumer recognition. Understanding the various video delivery choices and which ones work best for your brand can help you make the most of your video marketing strategy.

Interested In CTV/OTT, or have questions on how we can help you achieve your goals? Reach out to us below! Also, make sure to subscribe to our newsletter here!