First off, what does OTT mean? Over-the-top television or OTT is the process of delivering film and TV content from a device that connects to both the television and the internet. The term over-the-top is in reference to the fact that OTT devices go over a cable box to give users access to TV content. OTT can be accessed primarily in 3 ways:
- Connected devices including streaming devices, smart TVs and gaming consoles. Examples include Roku, Apple TV and PlayStation.
- Popular subscriptions and free streaming services such as YouTube TV, PlayStation Vue and Pluto TV.
- Television apps such as WatchESPN and WeatherNation which are accepted through internet connected TV.
So, what is OTT advertising all about? OTT advertising is often bought and sold programmatically, meaning that the technology automates the buying and selling of advertising in real time. This allows the advertiser to reach the right audience at the right time and puts less focus on the content that the audience is consuming.
For example, Bob’s preferred connected device is a Roku streaming stick that he plugs directly into his TV. Bob has access to thousands of movies and TV shows including original series, news, sports and more. He can watch almost anything across thousands of free and paid channels. Bob will see commercials that are based on his location, interest and demographics.
Does OTT advertising work? Yes. OTT is a great way to target so hard to reach, cord-cutting and cord-trimming audiences that aren’t paying for cable or satellite anymore. OTT combines the best of TV and digital. It brings data that advertisers expect in a digital environment, together with the TV experience consumers love.
How do we measure OTT campaigns?
Measuring the success of OTT campaigns is different from almost any other digital marketing services. A big reason for that is because a single impression is worth more in OTT than in any other service. Most people watch OTT on the big screen in their house. Big screen viewing means that more than one person is typically watching. So your single OTT impression may actually be reaching multiple people.
The single most important metric for OTT campaign performance is Video Completion Rate or VCR. Video Completion Rate measures the amount of your ad that was watched by the viewer. A higher VCR means that your ad is being put in front of people who are actually interested in it. When you properly target demographics using targeting capabilities such as behavioral or geographic targeting, you can achieve a higher Video Completion rate and ensure the success of your clients’ ads.
Around the industry, achieving a VCR of 90% is considered average. This means that most digital marketing agencies are serving ads that a consumer watches 90% of. VCR higher than that is significant success because it means that almost the entirety of your clients’ ads is being watched. It means that the message is resonating more with the viewer and reaching people who are actually interested.
Because of the big-screen viewing capabilities of OTT ads, the ability to serve ads that reach more than 90% of VCR, combined with the nature of serving multiple viewers a single impression is what makes OTT the digital marketing service with one of the highest returns on investment.
