OTT Advertising – What Are The Benefits?


OTT advertising is one of the ways to generate revenue when owning an OTT platform. It is a popular monetization model along with subscriptions and pay-per-view ones. Why is OTT advertising worth going for? Let’s observe the benefits of OTT advertising that you can take advantage of. 

If you want to launch a video streaming platform, we recommend a solution designed by Setplex. It supports all monetization models, and the team will help you launch.

What are the benefits of OTT advertising?

Recently, subscription-based services have been more popular among businesses and viewers. People prefer to subscribe once and use the platform whenever they want till the subscription period ends. 

But many viewers who have multiple subscriptions get tired of all of them. And they start switching to advertising-based services as there is no need to subscribe and pay for them. It is subscription fatigue they feel.

That is why OTT advertising can be profitable today. 

What exactly are the advantages of OTT advertising? Let’s have a look at them.

#1 Reaching more people

Many people shifted from television to internet-connected devices to enjoy video streaming services. And many will do that as researchers forecast. For advertisers, it means that OTT services are a gold mine.

According to statistics, 82% of US households subscribe to at least one OTT video streaming service. The average US customer is subscribed to at least four services. And experts predict that the number will only grow.

Moreover, 6,6 million people canceled their satellite or cable subscriptions in 2020. And this tendency is expected to continue.

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People prefer to pay less and enjoy the content. That’s why they will likely buy a subscription at a lower price but with ads than a subscription without ads but at a higher price.

#2 Targeting more accurately

All television viewers watch the same commercials. In comparison with this, OTT advertising can be more accurate, which increases the chances that a viewer will purchase a service or product advertised. 

The targeting can be more accurate and customized. Advertising can be based on viewers’ data – demographics and interests. For example, a 17-year-old girl and a 30-years-old woman can watch the same episode of a series, but the ads they will view will be different. They both will see a product or service they might be interested in. 

Instead of relying on a television commercial that can bring little profit, it is better to use OTT platforms for advertising due to their targeting capabilities. 

#3 Having a better data analytics

An OTT solution that a provider is going to obtain should have good analytics functionality. With it, you should better understand the audience and its viewing habits. 

How long does a person use your platform in a day? What time do they usually access videos? Which device do they use the most? Who are these people? What are their life values and interests? 

This data is valuable for advertising as well as for boosting platform performance. The more you know about your target audience, the more likely you will show the right ad. 

Don’t forget to check the performance analytics of how well your targeting was configured. 

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#4 No ads blocking

Many OTT platforms earn money only on advertising. That’s why it is crucial for them that users cannot block ads. Luckily, the SSAI method allows ad stitching so that the ad seems to be a part of a video. 

Final Thoughts

OTT advertising allows a provider to show ads to people more accurately. There is no way that ad-blockers can block them, and people can skip them without a platform’s permission. 

But with the ads being shown more accurately, more customers tend to learn more information about the product or service advertised.   


Originally posted 2022-09-20 19:01:56.

Denis Ava
Denis Ava
Denis Ava is mainly a business blogger who writes for Allbusinessreviews. Rather than business blogs he loves to write and explore his talents in other niches such as fashion, technology, travelling, finance, etc.

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