Since Netflix arrived on the scene roughly a decade ago, the traditional partnership between television and advertising has come under scrutiny. Indeed, there’s a strong argument to make that over-the-top (OTT) media outlets like Netflix will come to dominate the way Americans consume entertainment in the coming years. This change can either present a crisis or an opportunity for businesses that have utilized cable TV advertising in the past. On that point, we’d advise business owners to take note of how micro-moments and OTT advertising will transform the way we think about customer acquisition:
What is OTT Advertising?
The most obvious example of an OTT platform is the aforementioned Netflix. After all, Netflix is a juggernaut –– and a bit of an outlier –– within the OTT field. That’s because Netflix is ad-free (for now). Netflix boasts a massive number of world-wide subscribers (over 100 million) and as such, has never partnered with advertisers in a serious way. (For comparison’s sake, one of Netflix’s biggest competitors, Hulu, has roughly 17 million subscribers.) However, other OTT platforms do embrace advertisements and businesses that know how to craft ads to reach streaming audiences can take advantage of this new setup. We’ll explain how, below.
Micro-Moments and Streaming Services
Most OTT media platforms are niche specific. More and more consumers are willing to pay for entertainment content that they enjoy while cutting out hundreds of satellite or cable channels that they don’t. Still, that doesn’t change the fact that a vast majority of people watch TV (OTT or otherwise) with their mobile phone handy. So advertisements on OTT platforms can and do inspire consumers to experience micro-moments and look for more information regarding products, services, or companies on their smartphone.
Quantifying OTT Ad Performance
OTT media allows consumers to pick and choose which content they want to view. The good news is, marketers can use that knowledge to their advantage to craft more audience-specific ads. To wit, there’s likely to be a marked difference between individuals who subscribe to the WWE Network, and those who purchase HBO GO. Armed with that knowledge, marketers can craft ads to suit targeted audiences. And thanks to breakthroughs in multi-channel marketing and tracking by companies like Advocado, businesses can also keep tabs on how effectively those ads generate corresponding website visits, clicks on advertisements, and, ultimately, sales. By accurately tracking how consumers progress through the sales journey, marketing teams can build more engaging campaigns and create more opportunities for their business.
Advocado is a company that lives on the cutting-edge of cross-channel marketing. So rest assured that no matter how your business currently markets and advertises, our team can help you increase ROI and lower ad spend at the same time. Contact us for more information, and to get a closer look at our innovative products check out our video presentation here: