With more and more media becoming available to stream over the Internet, consumers quickly realized there were cheaper, if not free options for the same content that is readily available to them through their smart TV and devices. According to Forbes, a recent survey conducted by The Trade Desk found that the trend of cord-cutting will accelerate in 2021, sending cable-TV subscriptions into virtual free fall, a whopping 27 percent of U.S. households say they’ll cancel their pay-TV package by the year’s end. Okay… so what does this mean for businesses that typically advertise on traditional TV broadcasts? How will they reach and market their services and products to those cord-cutters? Red Shark Digital, one of the top marketing firms Greenville NC, is here to introduce two alternatives: OTT and CTV advertising.

What are cord-cutters?

“Cord-cutters” is a term that refers to viewers who have canceled their traditional cable and satellite subscriptions to multi-channel television services available to them through providers like Direct TV, Dish, Suddenlink, etc.

Common character traits of “Cord-Cutters” include:

1. Financially Conscious: A cord-cutter may be someone who is very conscious of their spending and tries to save money wherever they can. They may cancel subscriptions when they feel like they're not getting enough value for the cost.
2. Tech-savvy: Someone who cuts the cord is likely comfortable with using technology to find and stream content. They may also be familiar with different streaming services and how they work.
3. Independent: Cutting the cord may be a way for someone to take control of their entertainment choices and not be tied to a traditional cable or satellite TV package. They may value their independence and the ability to choose what they want to watch.
4. Selective: A cord-cutter may be someone who is very selective about what they watch and when they watch it. They may prefer to watch specific shows or movies rather than just turning on the TV and channel surfing.
5. Patient: Canceling streaming subscriptions can involve a certain amount of patience and willingness to wait for new content to become available on different platforms. A cord-cutter may be someone willing to wait for their favorite shows or movies to be available on a different streaming service rather than paying for multiple subscriptions.
6. Adverse to Commitment: Cord-cutters may be less inclined to sign up for long-term contracts or commitments. They may prefer to have more flexibility in their entertainment choices and not be tied to a specific service for an extended period.
7. Open-minded: Cord-cutters may be willing to try out new streaming services and platforms to find the best fit for their entertainment needs. They may be open to experimenting with different services and canceling them if they don't meet their expectations.

OTT and CTV Advertising

OTT and CTV advertising are two different types of digital advertising that are becoming increasingly popular as people continue to shift away from traditional cable TV. According to marketing firms Greenville NC, OTT and CTV advertising is the best way to market to cord-cutters. With OTT and CTV advertising, you can target users that stream on their favorite digital devices while implementing a more relevant and targeted approach.

As mentioned earlier, OTT and CTV advertising works with devices and streaming services to serve video ads that are non-skippable and immersive. These ads can also target specific interests of viewers, whereas traditional tv ads are shown to everyone watching that particular channel, regardless of their demographics and specific interests. The rise of OTT and CTV viewership provides more meaningful ways for you to engage at the right time with the right target audience at the right moments—bringing together the targeting precision of digital with the high impact of TV viewership.

Are OTT and CTV the same?

The key difference between OTT & CTV advertising Raleigh NC services is the platform on which the ads are displayed. OTT advertising is displayed on streaming services like Netflix, while CTV advertising exists on internet-connected TVs.

Over-the-top (OTT) is the delivery of TV and video content directly from the internet. Users can watch this content on various devices, including Smart TVs, tablets, phones, laptops, and desktop computers. Unlike needing traditional cable service or a satellite provider to view content, video delivery takes place in a streaming or video-on-demand format through popular and more affordable services like Netflix, Hulu, and Amazon Prime.

A Connected TV (CTV) is a device that connects to or is embedded in a television to support video content streaming. Different types of CTVs include Xbox, PlayStation, Roku, Amazon Fire TV, Apple TV, and more. All OTT content can be streamed through a CTV.

OTT Versus CTV

Another integral difference is that OTT advertising tends to be more targeted and personalized than CTV advertising. OTTs targeting abilities extend credit to streaming services' ability to collect data on their users' viewing habits and preferences, which advertisers can use to target their ads more effectively. CTV advertising, on the other hand, is typically less targeted and may be more similar to traditional TV advertising.

OTT Advertising:

• Delivered through streaming services that offer video content over the internet
• Ads are typically shorter in length compared to traditional TV ads, known as pre-roll ads
• Allows for more precise targeting and personalization due to the ability to collect user data
• Offers better measurement and analytics compared to traditional TV advertising
• OTT may offer more opportunities for interactive and engaging ad formats
• Video advertising targets users while they are consuming content through their preferred streaming services

CTV Advertising:

• Delivered through internet-connected TVs
• CTV ads may be longer in comparison to OTT ads
• Targeting is typically less precise compared to OTT advertising due to limited user data
• CTV may offer more opportunities for brand awareness campaigns or reach a broader audience
• CTV offers the potential for a larger screen display, which may enhance the visual impact of the ad
• Advertising placement is alongside apps and shows on their device

Overall, both OTT & CTV advertising Raleigh NC tactics are effective ways for brands to reach their target audience and engage with consumers in a digital environment. However, understanding the nuances of these different platforms is imperative for marketers to create effective campaigns that resonate with their audience.

Reach New Audiences With OTT and CTV Advertising Services

At this point, it is safe to say that spending money on traditional TV advertising is a thing of the past. With 80 percent of U.S. households owning at least one CTV device, OTT and CTV advertising is the trend that businesses need to get behind. To learn more about OTT and CTV advertising, contact Red Shark Digital to reach those cord-cutters and implement a more relevant, targeted, and digital approach that caters to your specific advertising needs!