Video consumption just won't stop. eMarketer projects by 2024, there will be 115.1 million CTV households in the U.S and video is just one portion of over-the-top (OTT) consumption. Customers are also using mobile devices to access video streaming.
As more people turn to OTT content — or film/TV programming delivered via the internet — what does this increase mean for video marketing?
OTT Growth and Cable Trends
This rapid OTT growth comes as great news to marketers who feared the cord-cutting trend would threaten their ability to reach key audiences.
According to Variety, in Q1 of 2023 alone, cable and satellite providers lost 2.3 million customers. With the rise in high quality, original content available through streaming services, it looks like this number will only continue to grow.
Benefits of OTT Advertising
When compared with traditional advertising, OTT offers several advantages:
- More view time. Unlike traditional TV ads, OTT advertising offers a multi-device approach, meaning marketers can access customers whether they're watching TV, enjoying a lunch break, riding the train to work or any other time someone is likely to stream video content.
- Precise targeting. Instead of basing your ad buying decisions on simple demographics like age and gender, you can target segments of an audience that are most likely to be interested in your product or service based on other interests and online behaviors.
- Enhanced viewership data. When you know the time, place and devices people are using to consume your ads, you can make data-backed decisions to optimize on the fly and improve future campaigns.
Essentially, OTT growth is an excellent opportunity for marketers who want more access to their audiences, refined targeting options and viewership data that informs spending decisions.
Stay tuned for part four of this series, where we'll examine video spending and revenue forecasts into 2024 and beyond and discuss why marketers can't afford to miss this opportunity.