OTT advertising is one of the fastest-growing segments of digital marketing, as more consumers switch from traditional TV to streaming platforms. OTT advertising offers brands the opportunity to reach highly engaged and targeted audiences across multiple devices and channels. However, OTT advertising also comes with its own challenges and complexities, such as fragmentation, measurement, attribution, and creative optimization. In this blog post, we will explore some of the key OTT advertising trends that will shape the industry in 2023, and how VIIRL Marketing can help you leverage them to achieve your marketing goals.
The OTT space is bound to grow as access to entertainment has become one step easier. According to a recent Hootsuite study, 92% of internet users watch video content online weekly. Moreover, streaming services such as Hulu have reported a significant increase in paid subscribers during the COVID-19 pandemic. In the first quarter of 2023, Hulu reported 45.3 million paid subscribers, a 39.4% increase from the first quarter of 2021. This indicates that consumers are willing to pay for quality content and convenience.
As more people switch to streaming content, marketers need to invest in OTT advertising to reach them. According to eMarketer, OTT video ad spending is expected to be near $10 billion by the end of 2023, accounting for 3.4% of all digital ad spending and 10.2% of total video spending[^3^]. This means that OTT advertising will become a significant part of any digital marketing strategy.
Connected TV (CTV) refers to any device that connects to the internet and streams video content on a TV screen, such as smart TVs, gaming consoles, streaming sticks, etc. CTV is one of the most popular ways for consumers to watch OTT content, as it offers a big-screen experience with high-quality sound and visuals.
Connected TV also offers a unique opportunity for advertisers, as it combines the benefits of both linear TV and digital advertising. These kind of ads can deliver mass reach with precise targeting based on demographics, interests, behaviors, location, etc. CTV ads can also be interactive and measurable with real-time data and analytics. eMarketer also says CTV ad spend will likely exceed $21 billion this year and reach $26 billion in 2023. This represents a huge potential for brands who want to connect with cord-cutters and cord-nevers who are increasingly consuming video content on CTV devices.
One of the main advantages of OTT advertising is that it allows brands to deliver personalized and relevant ads to consumers based on their preferences and viewing habits. However, this also comes with a responsibility: respecting the user experience. Consumers are becoming more aware and selective about what they watch online. They expect ads that are engaging, informative, and non-intrusive. They also expect ads that match the quality and format of the content they are watching. For example, if they are watching a short-form video on their smartphone, they may not appreciate a long or poorly designed ad that interrupts their viewing experience.
Therefore, advertisers need to optimize their creative strategies for different devices, channels, and platforms. They need to use data and insights to deliver ads that are relevant, timely, and contextual. They also need to test different ad formats, such as skippable or non-skippable, pre-roll or mid-roll, interactive or static, etc., to find out what works best for their audience and their campaign objectives.
By prioritizing user experience, advertisers can improve their brand perception, engagement rates, and conversion rates.
Another trend that will impact OTT advertising in 2023 is music streaming. Music streaming platforms such as Spotify, Apple Music, Amazon Music, etc., have become popular alternatives to traditional radio stations. They offer consumers more choice, control, and personalization over what they listen to. Music streaming platforms also offer advertisers new opportunities to reach music lovers with audio ads that are tailored to their tastes and moods. Audio ads can be combined with visual elements such as banners or videos that appear on the device screen when the user is listening to music. Audio ads can also be integrated with voice assistants such as Alexa or Siri that can respond to voice commands or queries. This creates a more engaging and conversational experience for the user, and a more memorable and persuasive one for the advertiser.
According to Voicebot.ai, 87.7 million U.S. adults now use smart speakers as of January 2020, which is 32 percent more than in January 2019 and is 85 percent greater than January 2018. Moreover, nearly 90% of marketers believe voice assistants will be a significant marketing channel in the next 3-5 years. This shows that voice assistant advertising is a growing and promising trend that marketers should not ignore.
One of the challenges of OTT advertising is content fragmentation. Content fragmentation refers to the fact that consumers have access to a wide variety of streaming platforms, services, and devices, each with its own content library, subscription model, ad inventory, and measurement system. This makes it harder for advertisers to reach their target audience across different platforms and devices, as well as to track and optimize their campaign performance.
To overcome this challenge, advertisers need to adopt a cross-platform approach that leverages data integration, audience segmentation, frequency capping, attribution modeling, and creative optimization tools. By using these tools, advertisers can create consistent and coherent messages that reach their audience wherever they are watching OTT content.
VIIRL Marketing can help you with this challenge by providing you with a comprehensive OTT advertising solution that covers all aspects of planning, executing, and measuring your OTT campaigns across multiple platforms and devices. We can help you identify your target audience, create engaging and personalized ads, distribute them across premium and brand-safe inventory, and optimize them based on real-time data and insights. We can also help you measure your campaign performance and ROI using advanced analytics and reporting tools.
VIIRL Marketing is a leading digital marketing agency that specializes in OTT advertising. We have the expertise, experience, and technology to help you create effective and efficient OTT campaigns that deliver results. We offer end-to-end OTT advertising services, including:
If you want to win in the OTT advertising space in 2023, contact us today to find out how we can help you achieve your marketing goals!