3 Differences Between Over-the-Top and Traditional TV Ads

Image of over-the-top streaming stylized logo in a hexagon

Television advertising is a well-known method for reaching potential customers. However, the world of television is changing rapidly. Fewer and fewer consumers watch traditional television through a cable subscription. This is especially true of younger demographics. Instead, users are switching to OTT, or over-the-top advertising. This is a type of television viewing service where, instead of using cable, users access content digitally.

Some of this content is ad-free, but many over-the-top services include advertising. Using over-the-top advertising can help you grow your business. If you choose to advertise through OTT, here are 3 differences you should know between this and traditional TV advertising:

1. Demographic

One of the biggest differences between OTT and traditional television is the demographic of viewers. While cable is becoming less popular, there are certain types of viewers who companies can best target through traditional television advertising. However, there are other demographics who mostly engage with over-the-top media.

A Pew study found that 61% of people 18-29 use over-the-top services while only 31% use cable. If your products or services target millennials, you are missing out on a large portion of your target demographic. Older consumers, however, are still more likely to have cable. As older generations continue to switch to OTT, smart companies target both over-the-top and cable.

2. Ad Targeting

A major advantage of over-the-top streaming compared to cable television is the ability to target certain groups more easily. With cable TV, you had to rely on knowing which demographics watched certain channels at certain hours. Since over-the-top is digital, your company can choose which groups to target with advertisements.

Like other forms of digital advertising, over-the-top ads let you customize who you want to see your ads. You generally pay for the number of viewers who see your ad, so you want to use this money effectively. With over-the-top advertising, you can choose which zip codes and which demographics you want to reach. This ensures that you only pay to reach your ideal consumers.

3. Perception

Another large difference between over-the-top ads and television ads is perception. Whereas many users will skip television ads if possible, this is different for OTT. FreeWheel found, for example, that 98% of OTT viewers complete video ads. Generally, customers accept ads on over-the-top as a necessary part of a lower subscription cost.

Hulu is a great example of this. The streaming service offers two different subscription models. Consumers choose whether they want to pay more to not see ads or if they will pay less and watch advertisements. Over half of Hulu users do choose advertisements, and ads bother this group less as they specifically choose to opt in.

 

If you are looking to understand over-the-top advertisements, Amped can take you through every step of the process. We will work with you to determine how to target your potential customers. We will handle your ads from the video shoot to placement on over-the-top services or on traditional TV networks. Contact us today at 520.777.8309 and start growing your business.  

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