As digital marketers, we’re all guilty of streaming a movie, binging three seasons of a show or playing Call of Duty to unwind after a successful campaign launch. And we’re not alone. According to Inside Intelligence, an estimated 213.7 million people use a connected TV (CTV) device to consume over-the-top (OTT) content at least monthly, an increase of 24 million people year over year.
Further, worldwide viewing time grew 44% in Q4 of 2020 compared to the same period in 2019 due primarily to COVID-19. CTV and OTT’s advertising popularity and level of importance is a direct result of pandemic trends, becoming one of digital advertising’s fastest growing channels to the tune of $9 billion in spend. However, this channel will continue to be a way for businesses to reach new audiences in a new way even in a post-pandemic digital landscape.
Three Key Benefits
1. Targeting audience efficiency. One of the biggest benefits to using CTV and OTT channels is access to specific audience targeting. Unlike traditional linear TV, CTV and OTT are able to target by the same detailed parameters we have come to know from programmatic, such as age, gender, interests and more.
2. More bang for your buck. While linear TV advertising was oftentimes out of reach for many brands and businesses due to budgetary constraints, the programmatic aspect of CTV and OTT make it a much more accessible advertising option for budgets of all sizes.
Proven Results: YPM worked with a client during the busy (and expensive!) 2020 holiday season to deliver impressions at a competitive CPM. Originally estimated at $35 cost per thousand impressions (CPM), we were able to deliver a $25 CPM — that’s a savings of almost 30%!
3. Cord cutting continues. Last year, traditional linear TV advertising decreased significantly in importance as more programmatic CTV choices became available to the users. According to the Interactive Advertising Bureau (IAB), among US marketers with digital video in their media budgets, 60% said they were shifting ad dollars from linear TV to CTV and OTT. Linear TV ad spending will never reach pre-pandemic levels again.
CTV and OTT advertising is an essential part of the digital mix. With the average viewer watching an hour and thirty-six minutes of CTV each day, this is a big business opportunity and no longer just a trend. If you’d like to learn more about how YPM can help strategize the best campaign for your budget, contact us today.