What’s OTT Advertising? How to reach Cord Cutters with Over the Top and Connected TV

How to Reach the “Cord Cutters”

Ok, so you want to reach the “Cord Cutters.” First, let’s talk about who they are. There is a lot of hype about TV viewing habits changing. There is good reason for that. But one important point I like to be darn sure advertisers comprehend is that you absolutely must consider your demographic before freaking out and allocating your whole budget to reach Cord Cutters. Why? Because the cable and internet companies aren’t dumb. They’ve got their offerings dialed in and they know that most of you need their internet service. So what’s a smart company like Comcast going to do? They’re going incentivize you to keep cable with your internet service by making the additional cost, nearly nothing. 

Cutting the Cable Cord. Do as many customers do that as you think?

Let me tell you what happened to me. I, like most customers, loathe my internet and cable provider. They’re jerks. No question. So every year or so I call to cancel because I’m fed up with the crazy fees and erratic bill fluctuations that happen for seemingly no reason at all. But last time I called to cancel, these sly foxes offer me cable, internet and a home phone service for nearly less than the internet service alone. You know why? Because they need to the cable subscribers and they need the home phone to be relevant. So I now pay less for a home phone (which I don’t use), cable and internet than I was going to pay for just internet service. Therefore, advertising on cable TV is still quite effective because unless you’re flat broke, you end up keeping the cable serviec. 

Hulu Advertising, Netflix, Roku, Disney + and Apple TV – What the heck is OTT?

However, say you get free internet from some source. So you really do only have streaming services like HULU, Netflix, Disney +, or Apple TV. Those people tend to be younger, 18-34 years old, and are often middle to low income. So, how do we reach those people? Well, I’m glad you asked because the answer is simple. OTT. OTT stands for Over the Top. What the heck does that mean? It means that these consumers are receiving their entertainment over the top of the standard delivery systems like Broadcast, Satellite, and Cable. Reaching these folks through OTT, sometimes called Connected TV, is easier than ever and highly efficient. 

“As TV viewing habits continue to change…more and more marketers [are] shifting a large portion of their ad budgets to over-the-top, or “OTT advertising”, services which draw a growing number of viewers away from traditional television advertising, particularly those from the younger demos advertisers covet.” (AdWeek)

ott advertising via connected tv image of how to reach cord cutters through connected tvThere are many media companies that have figured out how to offer OTT advertising services and the advertising options for reaching Connected TV are robust in 2020.

However, deciphering which ones offer the best solution is an important and somewhat daunting task if you’re a busy Marketing Director who doesn’t want to spend hours talking to media salespeople.

Good news for you though, we’ve done the research for you! We can help you reach cord-cutters with insights specifically on those people who don’t subscribe to traditional forms of television and we’re able to reach the demographic of new media users who stream content on their Smart TVs, devices, and computers at an affordable price. 

Pro Tip: OTT is sold on a CPM basis. What’s a CPM? A CPM is a measurement of the cost of making 1,000 impressions on a demographic. So, if the CPM for OTT to reach Men 18-34 is $30, that means it will cost you $30 to serve your (:30) video ad to Men 18-34 1,000 times. 

While traditional television advertising buys still have value and make sense for the right demographics and advertising goals, we do recognize that the TV landscape is broader than ever before, and consumers have more high-quality options than they could watch in a lifetime. With dozens of streaming services and hundreds of channels offering viewers choice, control, and variety in their viewing experiences we have to stay on top of media habits as content and platforms have evolved.

There are two main ways to reach cord-cutters with your advertising.

1) Programmatic TV Advertising

2) Directly from an OTT offering media company

Both Programmatic TV and direct OTT offer advertisers the power to deliver different ads to individual households based on a variety of demographic factors. With Programmatic TV, that process can be automated with similar sorts of efficiency that can be found with digital ad buys.

By end of 2019, Programmatic TV is projected to account for 6% of television advertising spending; which equates to 4.43 billion dollars spent by US advertisers. So, this trend isn’t going anywhere. It’s here to stay and is an important media to consider if you have video ads in your marketing portfolio.

With a wealth of demographic information, we can help you effectively target by distinct audience categories including:

  • Age
  • Gender
  • Presence of children in the household
  • Education
  • Ethnicity
  • Homeownership status
  • Household Income
  • Language
  • Marital Status
  • Viewing Behavior
  • Daypart (Primetime vs. non-primetime)
  • State (the US only)

By matching advertisers’ 1st and 3rd party data against inventories and demographic information on viewing audiences, we’re able to deliver precise TV ad buying in 2020.

Through advanced digital reporting of Programmatic TV advertising, advertisers can:

· Receive detailed breakdowns on network and daypart delivery, audience size and makeup
· Measure impact of an overall Programmatic TV campaign
· Follow viewers’ activity online after they view your ad on TV
· Match exposure to broadcast ads with digital actions like site visits, conversions, and more
· Gain optimization insights for future TV and digital campaigns based on these results
· Carry these insights over to other channels for a successful multi-platform advertising campaign

“By interweaving audience data and TV inventory, targeting insights are richer, and buying can be integrated across every screen. Overlapping Programmatic TV buying with programmatic display campaigns online we’ll deliver informed and validated buying strategies and can make adjustments to one campaign using the insights of the other!” – Robin Rucinsky, Media Director and President of Thrive Advertising

If you’re interested in Programmatic TV, Connected TV, or OTT, give us a call or send us an email here. We regularly discuss the advantages and disadvantages of advertising on SlingTV, Roku, Hulu, and more. We love those conversations and we’d love to talk with you about how this targeted advertising tactic can bring you, new customers, now.