Are you down with OTT?

If you are down with OTT, you realize the television industry has changed and is continuing to evolve.

Originally, the idea of watching TV through the Internet was impossible.  Today, it’s something that millions can’t live without. Through Connected TV (CTV), video content used to be delivered through cable providers with a box connected to a television.

As technology improved, the Internet became a big part of our lives and with it came mobile connectivity. This resulted in a different type of television model. A model that allows users to stream TV shows through the Internet on any device connected to the internet. This system goes over the top of the traditional closed TV infrastructure. This is where the term OTT (Over The Top) comes from.

Advertising on OTT TV

The most common OTT service is Netflix, which is based on a subscription model, rather than ad model. Therefore, today you are unable to advertise on Netflix.  On the other hand, Hulu is based on the ad model. Hulu has subscription plans allow users to choose to opt out of commercials or have them at a lower price. Currently, more than half of Hulu’s users watch their content with ads. Thus, Hulu has 33 million out of 54 million ad viewing users.

Roku is another company that provides an all in one experience through their OTT TV box. Roku allows users to connect to multiple TV apps such as Netflix, Hulu, Amazon Prime, YouTube and Roku’s channels. They also show ads and add users to their platform by selling their OTT TV at very low and affordable prices compared to competitors.

OTT vs. CTV Ads

The bottom line is that users don’t mind watching ads through CTV, as they know it is part of the business model.

OTT ads can be shown before, during or after watching video content. Studies show that users are willing to watch a video ad in order to continue watching their content. Its also great for targeting younger generations who are getting harder to advertise to.

If OTT or Connected TV is NOT part of your current video marketing strategy, it should be.