What is OTT?
OTT, or over-the-top, refers to the delivery of video and audio content via the internet, without the need for a traditional cable or satellite television subscription. OTT content is typically streamed through a smart TV, gaming console, or a streaming device such as a Roku or Amazon Fire Stick, and can include a wide range of programming, from movies and television shows to live sports and news.
In the context of advertising, OTT refers to the delivery of video ads to viewers who are streaming content via the internet, rather than through traditional television channels. OTT advertising allows advertisers to reach a large and diverse audience, and can be targeted to specific demographics or behaviors. Some of the most popular OTT platforms include Netflix, Hulu, and Amazon Prime Video.
One of the benefits of OTT advertising is that it allows for more precise targeting and measurement of ad campaign. As OTT platforms gather data on viewers' viewing habits, advertisers can use this information to target ads to specific audiences. Additionally, OTT advertising allows for dynamic ad insertion, which allows for real-time adjustments to ad campaigns based on viewer engagement.
The Future of OTT
As the popularity of streaming services continues to grow, OTT advertising is expected to become an increasingly important aspect of the programmatic advertising ecosystem.
The rise of streaming services and the shift of audiences away from traditional TV has led to a significant increase in the amount of advertising dollars being directed towards OTT platforms. eMarketer, a market research company, estimates that OTT advertising will reach approximately $12.7 billion in 2023, and will continue to grow at a compounded annual growth rate of 27%.
This growth is driven by a number of factors, including the increasing number of streaming options, the shift of audiences towards streaming platforms, and the ability to target and measure ads more effectively on OTT platforms.
As more and more people turn to streaming services for their entertainment, it's likely that OTT advertising will continue to grow in popularity, becoming an increasingly important aspect of the programmatic advertising ecosystem.
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