OTT Advertising Is Measurable, Cost-Effective, And Also Diverse

The same data that allows advertisers to target customers also serves to make OTT surprisingly scalable. Advertisers may even have enough information to identify certain customers while still adhering to privacy regulations. Thus, an online retailer can run an OTT ad campaign and, possibly, determine which specific buyer saw the advert, then visit that retailer’s website and make a purchase. Measurement can get a lot more complicated when ott advertising is combined with other forms of performance marketing.

Over-the-Top advertising is relatively cheap too. In 2020, it’s not uncommon to pay around $ 30 per thousand impressions, which is only three cents each. If you consider that OTT ads are usually impassable and occupy the largest screen in a home while the general audience is engaged with them, they can be very cheap – comparable to YouTube ads in terms of average viewing costs.

OTT is a new channel and new tool introduced into your media mix, and it represents diversification. So many e-commerce retailers, especially DTC, have their entire businesses built behind Facebook. Now our opinion is not that the Facebook apocalypse is upon us. Not. But what if you do? Where will you put those [ad] dollars?… On banners on 10,000 sites, you’ve never heard of? It is a terrible [idea]. You can quote me on that. So what [OTT] represents is diversification opportunities.

This idea cannot be taken lightly. Retailers depending on any single performance media channel – search, social, or whatever – should consider how diversification of advertisements could increase store safety and stability.

Scale, targeting, scalability, low cost, and diversification all make Over-the-Top advertising an attractive opportunity for established retailers.

But OTT may not be the place to start for a new or very small shop. Instead, experts recommend to focus on direct response advertising beforehand, such as Google search, Facebook, and Instagram. Once merchant ads on the channel reach a reduced return point, add OTT to the mix.

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