The Rise of OTT Automotive Advertising–And Why Your Dealership Should Give It a Try

Whether you're keeping up with your digital marketing acronyms or OTT and CTV are just strings of letters to you- no one can deny that the world of automotive advertising is changing.


All sorts of people, including your target audience, are cutting cords and switching from satellite to streaming services, and there are no signs of slowing down. In Q1 of 2023 alone, cable and satellite providers lost 2.3 million customers. Moreover, eMarketer predicts that by 2024, there will be 115.1 million CTV (connected TV) households in the US. Customers are also using mobile devices to access video streaming anytime and from anywhere.

There's never been a more auspicious time for local car dealerships to add OTT to their media mix. If you're lost in digital marketing limbo and unsure how OTT works and how it can boost your bottom line, CMG's digital advertising gurus break it down below:

Is My Audience Really Cutting Their Cords?

According to internal Amazon data, the ages of households that identify as "cord-cutters" over "cable subscribers" are as follows:

74%

64%

56%

Ages 18-34

Ages 35-54

Ages 55+


What is OTT Automotive Advertising Anyway?

If you've ever binge-watched a show on Hulu Basic or live-streamed an event on Twitch, you've consumed OTT ads.

OTT ads, which are also sometimes referred to as streaming TV ads, signify any content that is delivered directly to viewers via a streaming video service such as Peacock, Hulu, Freevee, etc.

OTT, colloquially and in marketing-speak, stands for Over-The-Top. By allowing you to bypass (go over the top of) traditional media advertising on TV and put your ads directly in front of your desired audience, OTT automotive ads have a very low skip-through rate. With OTT's refined targeting capabilities, you won't get jipped by external factors like broadcast schedules or geography and can reach anyone anytime and anywhere.

In a nutshell: OTT is the ideal way to showcase inventory, increase dealership awareness, and reach ready-to-buy consumers.

The Details Are in The Data: The Benefits of OTT Automotive Advertising

Though local TV ads might still be valuable to your dealership, adding OTT to the mix offers several advantages.

More view time. OTT automotive advertising provides a multi-device approach. This means marketers can reach customers whether they're watching TV, riding the train to work, catching up on shows during their lunch break, or any other time they're likely to stream video content.

Enhanced targeting. OTT let you refine your target audience beyond gender and age. With OTT, you can target honed segments of an audience that are most likely to be in the market for a vehicle based on their online behaviors.

Valuable viewership data. OTT also reigns supreme when it comes to the asset everybody wants data. When your marketing team knows the time, place, and devices people are using when they watch your ads, they can make data-driven decisions to optimize on the fly and ensure future campaigns reach the right eyes.

What Platforms Support OTT Advertising?

Platforms where you can reach consumers through OTT include:

  • Hulu
  • Roku
  • Crackle
  • Plex
  • Pluto

Amazon is also a huge player in the OTT sphere. Think about it: how many times do you visit Amazon in a week? A lot of people visit Amazon a lot of the time, including people who are actively searching for a new vehicle.

With 68 network partners-including MLB, Food Network, and IMBdTV- that employ direct integration to Amazon Publisher Services, Amazon OTT is assured brand safe with licensed-only TV and movie content. This means that Amazon has a rigorous system in place to review content sources, compile blacklists for poor placements, block unauthorized/shady publishers from selling impressions, and provide marketers with post-impression traffic to improve future campaigns.

Should OTT Videos Be Different from Traditional Ads?

Wondering if you can recycle your old TV ads content for your OTT campaigns? Sure! But be aware-one of the advantages of OTT is that the ads can be dynamic. Unlike with TV ads, you have the power to adjust your OTT ads throughout the quarter based on your current inventory.

What's better? Viewers can't skip through OTT ads.

With the precise targeting power of OTT, it's no longer enough to deliver relevant content: your ads should be personalized. Don't let this thought daunt you, however-OTT platforms like Amazon can empower you with the data and shopper behaviors you need to advertise based on interest.

For example, someone purchasing diapers and baby items may be considering upsizing to a vehicle with more room for car seats. OTT could allow you to get an ad for your minivan inventory in front of them. If another potential buyer is busy purchasing tents, hiking shoes, and other accessories that indicate they like the outdoors, seeing an OTT ad for Jeep might bring them into your dealership.

The old-school law of advertising still applies: keep it snappy. OTT ads are most successful at 15-30 seconds. People may tune the ad out or become resentful when it infringes on the minute mark. A good rule of thumb is to create quick but impactful ads highlighting inventory and deals.

Unlock the Power of Everywhere with CMG and OTT

CMG Local Solutions takes all the guesswork out of running an effective OTT automotive advertising campaign. Our network of marketing firms empowers car dealerships in their locale with data-informed campaigns that meet more potential buyers with less money. Whether you're new to streaming or already have an established presence, we have the experience and know-how to help get your dealership in the fast lane.

When you're ready to launch a lucrative OTT automotive ad campaign, we're ready to talk.

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