The dramatic shift in media viewing habits present real challenges for traditional local DMA media buyers. Media buyers and planners need to get acclimated on the OTT landscape to effectively reach the right audiences on these new distribution platforms.
There’s no denying that OTT has hit the mainstream, solidifying its place in the media plans of advertisers. But as OTT continues to grow at a rapid rate, what do advertisers need to know about integrating OTT into their broadcast buys?
TEGNA Marketing offers insights into the value of integrating OTT and TV advertising in your ad campaign:
If you’re still getting up to speed on Over-the-Top (or OTT), it’s time to catch up. OTT is an FCC term that refers to how consumers receive their primary video signal, meaning it’s “over the top of the cable/MVPD plant.” Almost 80% of U.S. consumers have OTT subscriptions and the average weekly time spent watching OTT is expected to increase to 18.9 hours by 2020. This represents a huge opportunity for marketers, and OTT ad revenues are forecasted to rise to $31.5 billion by 2018.
It’s not just Millennials watching, either. More than 60% of OTT viewers are ages 25-54, and as a whole, the OTT audience represents a mix of cord-shavers, cord-cutters, cord-nevers and cord-extenders—industry terms used to describe consumers’ cable subscription patterns. What does all of that mean? In addition to reaching those no longer viewing traditional linear TV (cord-cutters or -nevers), OTT reaches consumers who want to expand their options (cord-extenders or -stackers). In other words, OTT TV is not replacing their broadcast TV viewing but rather adding to their total video viewing time.
OTT has started to solidify its place in the media plans of advertisers. But what about TV advertising? Should you choose one over the other?
eBook intro: Television’s “big iron” broadcasting systems—vast collections of wires and machines in use since the medium’s birth nearly a century ago—are fading away as operations shift toward the cloud. This massive transition to IP protocols is far from complete but already the industry is trying to stay ahead of its many business implications.
The “on-off” switch still works the same, but nearly everything else has changed about connecting viewers with programming. Signals once transmitted in analog fashion via dedicated satellites and received with antenna are now encoded and distributed digitally and streamed via broadband. And it isn’t just a single industry modernizing in isolation – broadcast TV’s changes are occurring against the backdrop of relentless shifts across media and technology. Video content is now served up via dozens of connected devices, across more than 120 OTT networks and countless websites. Continue reading here…