PULSE
PULSE
Issue 2
You Down With OTT? (Yeah, and TV!)
February 2019
Over-the-top (or OTT) media services are those that bypass traditional television to deliver content. OTT leaders include Netflix, Hulu, Amazon, and YouTube (amongst other smaller players), and later this year, media giants such as Disney and Viacom. Navigating this unfamiliar terrain can cause marketers to shirk from the field and stick to what they know, possibly missing the opportunity to succeed in what will certainly grow to not replace but exist aside television. Read on to discover the OTT ecosystem, how consumers feel about it, how it can exist effectively aside pre-existing TV ad plans, and more.
STATE OF OTT
Will Netflix’s subscription-based model be able to sustain its business as cheaper, ad-supported platforms enter the streaming space? Media giants are all launching their own services, and they’re bringing their vast content libraries with them. AT&T, Disney, and Viacom are set to join the OTT market in 2019, and NBCUniversal will debut in 2020. In addition to challenging Netflix on price, these competitors present an additional threat: the possibility of losing some of its most valuable content. This also includes consumer sentiment towards OTT ads from the Interactive Advertising Bureau, which found:
Introduction to Advanced TV: Key Trends in the OTT Market. AppsFlyer, January 2019.
OTT is still a grey area for many – with superfluous TV terminology, fragmented options for media buying, and unclear expectations for performance and measurement, it can be tricky to know where to start. If you’re new to OTT or want to convince your team that testing OTT is worthwhile, AppsFlyer lays out the groundwork for you.
OTT WITH TV
Broadcasters and OTT: It's All in the Family. Ooyala, January 2019.
OTT has firmly planted its flag in the media industry and Gen Edge become mainstream. As cord cutting continues and Millennials and viewers continue to turn away from traditional , more media companies are joining, rather than fighting, the push into OTT. Moreover, as 5G wireless delivery takes hold, viewers will find an even better experience that provides jitter- and buffer-free SVOD, AVOD, and live sports. Content owners have seen a massive increase in the demand for their products, which will continue as OTT services push out across the globe and original content maintains — and grows — its value.
What the Disruption to TV Advertising Means for Marketers. MindGruve, January 2019.
With the emergence of OTT, marketers are experiencing a new era of connected TV advertising that affords them many of the benefits of traditional TV advertising. It also offers: digital-like targeting; young, affluent viewership; engaged viewers; increased brand lift. Looking for lower cost options and flexibility to view programming on multiple devices regardless of physical location, it’s not surprising that 60.7% of the U.S. population viewed videos via an OTT platform:
Linear TV and OTT: Living Together in Harmony. Video Advertising Bureau, November 2018.
The Growth of OTT means more opportunities for both consumers and marketers. It provides more content, choice, and convenience to consumers. It also provides marketers with new platforms on which to reach and engage their audiences. It follows then, that an advertising campaign that utilizes both Linear TV and OTT is greater than the sum of its parts. Ad-supported OTT should be considered as part of a campaign’s overall video mix, as it offers the same engaging, premium, brand-safe programming found on linear TV.
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About ANA Marketing Futures
Knowing that marketers are increasingly challenged in their efforts to keep up with the latest trends and technologies, the Association of National Advertisers (ANA) tasked itself with creating a program designed to help marketers anticipate—and prepare for—the future of marketing.
ANA Marketing Futures is what emerged. With a focus on innovative topics and emerging trends, ANA Marketing Futures provides resources that will influence and inform via member cases, research studies, and insight from industry innovators. Check back often to learn about emerging trends and become inspired to take steps toward the growth of your business.
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