Streaming video has become an increasingly popular and effective method for reaching today’s viewers, making it an ideal choice for brands looking to engage potential customers during the discovery phase of their consumer journey.

Streaming video advertising creates a powerful connection between a brand and an interested consumer through the dynamic combination of sight, sound, and motion. This immersive experience not only captures attention but also enhances brand recall. Additionally, streaming platforms enable brands to optimize their ads using modern machine-learning techniques and future-proof their strategies with first-party data.

Today, ad-supported services within the video landscape feature some of the most recognizable names in the industry, including Hulu, Tubi, Paramount+, Peacock, and Discovery+, among others. These platforms offer brands a unique opportunity to reach diverse audiences in a highly engaging format.

As marketers, we understand that measuring the effectiveness of video advertising has historically been challenging compared to traditional display and search ads. However, advancements in technology and analytics have transformed this landscape, making it easier than ever to track performance and gain insights.

With the right strategies in place, brands can leverage the power of streaming video to connect with their audience in meaningful ways, driving engagement and ultimately influencing purchasing decisions.

What Is OTT Advertising?

OTT (over-the-top) advertising refers to advertising delivered directly to viewers over the Internet through streaming video services or devices. This innovative channel enables media buyers to target specific audience segments with precision, offering the advanced measurement capabilities that digital marketers have come to expect.

The term “over-the-top” originates from the ability to bypass traditional TV providers that control media distribution. This direct approach allows advertisers to reach their audiences without the constraints of conventional broadcasting. By going over the top, media companies and advertisers gain the freedom to operate without pre-planned broadcast schedules or geographic limitations, making it easier to connect with viewers on their terms.

OTT advertising not only enhances targeting capabilities but also provides valuable insights into viewer behavior and engagement. As a result, brands can create more effective advertising strategies that resonate with their target audiences, ultimately driving better results.

Connected TV (CTV) vs. OTT

While marketers often use OTT (over-the-top) and CTV (connected TV) interchangeably, it’s essential to understand that the two concepts are not the same, although they are closely related. OTT refers to a method of ad delivery that can occur across various devices, while connected TV specifically refers to an internet-connected television that supports OTT ads.

In essence, OTT is the broader category encompassing all forms of streaming video advertising delivered over the internet, regardless of the device used. Connected TVs are one of the platforms where OTT ads can be served, but they are not the only option.

For instance, you might encounter OTT ads while watching Hulu on your mobile phone, demonstrating that television is not a requirement for OTT advertising. This flexibility allows advertisers to reach audiences across multiple devices, including smartphones, tablets, and smart TVs, enhancing their ability to connect with viewers wherever they are.

Understanding the distinction between CTV and OTT is crucial for marketers looking to optimize their advertising strategies and effectively reach their target audiences across various platforms.

The Benefits of OTT Advertising

Utilizing OTT (over-the-top) advertising offers several significant advantages that make it a crucial component of modern marketing strategies. Here are some key benefits.

Precise Targeting That Eliminates Waste

One of the most powerful aspects of OTT (over-the-top) advertising is its ability to offer multiple layers of audience targeting. This precision helps eliminate waste in ad spending, ensuring that your marketing efforts are focused on the most relevant audiences. Depending on the platform and your approach to buying OTT, you can target based on the provider’s audience data or, in some cases, layer your own customer data for even more refined targeting.

Most of the larger OTT platforms allow you to target based on:

Interests and Behaviors: You can reach viewers based on their interests and online behaviors, ensuring that your ads resonate with their preferences. I’ve found that this level of targeting can significantly improve engagement rates, as the ads feel more personalized and relevant to the viewer.

Demographics: Targeting options include age, gender, income level, and other demographic factors, allowing you to tailor your messaging to specific audience segments. This is particularly useful when launching a new product aimed at a specific age group or demographic, as it allows for more effective communication.

Location: Geographic targeting enables you to reach audiences in specific regions, cities, or even neighborhoods, making your campaigns more relevant to local consumers. I’ve seen firsthand how local targeting can drive foot traffic to businesses, especially for promotions or events.

Custom Audiences: You can create custom audiences based on your first-party data (like customer lists) and third-party data sources, allowing for highly personalized advertising. This feature has been invaluable for retargeting campaigns, as it allows me to reconnect with potential customers who have already shown interest in my products.

Additionally, adopting a cross-channel approach to OTT allows you to target and retarget the same audience across multiple channels and screens. For example, with the right OTT strategy, you could reach your audience on their TV screens and then retarget them across OTT platforms, audio ads, display ads, and more.

This creates a truly connected cross-channel ecosystem that enhances brand visibility and engagement, ultimately moving the needle for your brand. In my experience, this holistic approach not only increases brand recall but also fosters a sense of familiarity and trust with the audience.

By leveraging precise targeting in OTT advertising, you can maximize your return on investment and ensure that your message reaches the right people at the right time. I believe that the future of advertising lies in this level of personalization and connectivity, making OTT a vital tool in any marketer’s arsenal.

Resilience Against Privacy-Led Industry Changes

As major data privacy-focused changes loom on the horizon, they are set to significantly impact the methods used for performance marketing targeting and measurement. In response, many advertisers are actively seeking fresh solutions that enable them to reallocate their marketing dollars into areas that remain highly targetable and measurable.

In this evolving landscape of privacy concerns, the TV screen is emerging as one of the most targetable devices in an advertiser’s toolkit. What’s particularly interesting is that the TV screen never relied on cookies or IDFA (Identifier for Advertisers) to begin with, meaning that the deprecation of these tracking methods doesn’t affect TV screen targeting in the same way it does for other digital platforms.

This resilience offers a unique opportunity for advertisers to leverage the power of OTT advertising without the complications associated with traditional digital tracking methods. I’ve found that this shift not only allows for continued effective targeting but also fosters a sense of trust with consumers who are increasingly concerned about their data privacy.

Moreover, the ability to target audiences based on their viewing habits and preferences on connected TVs provides a level of precision that can drive engagement and conversion rates. In my experience, this approach not only enhances the effectiveness of campaigns but also aligns with the growing demand for transparency and accountability in advertising.

As the industry adapts to these privacy-led changes, embracing the potential of TV screen advertising can be a strategic move for brands looking to maintain their competitive edge. By focusing on this resilient medium, advertisers can continue to connect with their audiences in meaningful ways while navigating the complexities of the evolving digital landscape.

Enhanced Ad Relevance and Increased Engagement

OTT advertising significantly boosts engagement by tailoring ads to individual viewer preferences through comprehensive data analysis. This level of personalization ensures that ads are not only relevant but also resonate with the audience, leading to higher engagement rates.

Precise Targeting: OTT platforms offer precise targeting based on demographics, interests, and viewing behaviors. By ensuring that ads reach the right audience, advertisers can create a more meaningful connection with viewers. I’ve noticed that when ads align closely with viewer interests, the likelihood of interaction increases dramatically.

Interactive Elements: The inclusion of interactive elements and varied ad formats makes OTT ads more engaging. For instance, ads that allow viewers to click for more information or participate in polls can significantly enhance viewer interaction. I’ve found that these interactive features not only capture attention but also encourage viewers to engage with the brand on a deeper level.

Contextual Timing: Timing ads during relevant content is another effective strategy for enhancing engagement. When viewers are watching content that aligns with the ad’s message, they are more likely to pay attention and respond positively. This contextual relevance can make a significant difference in how the ad is received.

Frequency Capping: To prevent ad fatigue, frequency capping is employed, ensuring that viewers are not overwhelmed by seeing the same ad repeatedly. This thoughtful approach helps maintain viewer interest and prevents negative associations with the brand. I’ve seen how well-executed frequency management can keep audiences engaged without feeling bombarded.

Detailed Performance Metrics: Finally, OTT advertising provides detailed performance metrics that help advertisers refine their campaigns for better engagement results. By analyzing data on viewer interactions, completion rates, and overall effectiveness, brands can make informed adjustments to their strategies. This iterative process is crucial for optimizing campaigns and maximizing engagement.

Better Brand Safety Measures

Ensuring brand safety in OTT advertising is paramount, and it requires a strategic approach that emphasizes precision in targeting and real-time reporting. By implementing robust safety measures, advertisers can protect their brand reputation while effectively reaching their desired audiences.

Precision in Targeting: One of the key components of brand safety is the ability to target ads accurately. By utilizing advanced targeting techniques, advertisers can ensure that their ads are displayed only on appropriate channels and content. This precision helps mitigate the risk of associating the brand with unsuitable or controversial content.

Contextual Targeting: Contextual targeting plays a pivotal role in maintaining brand safety. By analyzing the content surrounding ad placements, advertisers can make informed decisions about where their ads appear. This approach allows for the establishment of finely tuned targeting criteria that align with the brand’s values and audience expectations.

Transparent Reporting Capabilities: Transparent reporting is essential for monitoring ad placements and performance. Real-time reporting capabilities enable advertisers to track where their ads are being displayed and assess the context in which they appear. This transparency allows for quick adjustments if any issues arise, ensuring that brands remain in safe environments.

Combining Contextual Data and Categories: By combining contextual data with specific content categories, advertisers can further refine their targeting criteria. This method helps prevent the display of ads on channels deemed inappropriate for certain audiences, thereby avoiding associations with “fake content” or unsuitable material. I’ve seen how this proactive approach can significantly enhance brand safety and foster consumer trust.

Continuous Monitoring and Adjustment: Brand safety is not a one-time effort; it requires continuous monitoring and adjustment. Advertisers should regularly review their ad placements and performance metrics to ensure compliance with brand safety standards. This ongoing vigilance helps maintain a positive brand image and reinforces consumer confidence.

Support for Focused Advertising Strategies

To maximize the effectiveness of your advertising efforts, it’s essential to build and supplement base campaigns with focused, complementary strategies. This includes tactics such as incremental reach, managing frequency, targeting competitors, and focusing on lapsed customers. Over-the-top (OTT) video is a versatile channel that can support a wide variety of marketing and sales initiatives thanks to its growing capabilities in scaling, measuring, and data-driven targeting.

Incremental Reach: OTT advertising allows brands to extend their reach beyond traditional audiences. By targeting specific segments that may not be reached through conventional channels, you can effectively increase your overall audience base. This incremental reach is particularly valuable for brands looking to expand their market presence.

Manage Frequency: Controlling how often your ads are shown to the same audience is crucial for preventing ad fatigue. With OTT, you can implement frequency capping to ensure that viewers are not overwhelmed by repeated ads. This thoughtful approach helps maintain viewer interest and engagement, ultimately leading to better campaign performance.

Target Competitors: OTT platforms provide the opportunity to target audiences who are engaging with competitor brands. By strategically placing your ads in front of these viewers, you can capture their attention and potentially convert them into customers. This competitive targeting can be a game-changer in crowded markets.

Focus on Lapsed Customers: Re-engaging lapsed customers is another effective strategy that OTT can support. By using data-driven insights, you can identify customers who have previously interacted with your brand but have since disengaged. Tailoring your OTT ads to re-engage these individuals can help bring them back into the fold.

Full-Funnel Performance Channel: Many discussions around OTT focus solely on upper-funnel awareness, often oversimplifying its goals as being the same as traditional TV advertising. However, OTT video can be leveraged as a full-funnel performance channel that does much more than just build brand awareness. It can actively engage and guide customers through the entire funnel, from initial awareness to final conversion.

In my experience, recognizing the full potential of OTT advertising has been transformative for many brands. By employing focused strategies that align with specific marketing goals, advertisers can effectively utilize OTT to drive meaningful results across all stages of the customer journey. This comprehensive approach not only enhances brand visibility but also fosters deeper connections with consumers, ultimately leading to increased loyalty and sales.

Improved Accountability

The landscape of advertising has evolved significantly, with OTT (over-the-top) ad campaigns becoming highly measurable and optimizable. Unlike traditional TV advertising, where gauging effectiveness was often a challenge, OTT platforms provide precise metrics that allow advertisers to assess their campaigns with clarity.

Real-Time Metrics: Advertisers can track viewer engagement, click-through rates, and even demographic insights in real-time. This immediate access to data enables data-driven decisions, allowing brands to understand what works and what doesn’t almost instantaneously. I’ve seen how this level of accountability can transform campaigns, as advertisers can quickly pivot their strategies based on performance data.

Data-Driven Optimization: The wealth of data available through OTT advertising empowers advertisers to optimize future campaigns effectively. By analyzing viewer behavior and engagement patterns, brands can refine their targeting, content, and ad formats for maximum impact. This iterative process not only enhances the effectiveness of individual campaigns but also contributes to long-term brand growth.

Full-Funnel Performance Driver: OTT can serve as a full-funnel performance driver, supporting brands at every stage of the customer journey. What sets Tinuiti apart is our unique approach, which focuses on finding the right fit for each brand. This means understanding whether the goals are traditional metrics like reach and frequency or more digital-centric measurements, such as programmatic advertising or sponsorship opportunities.

Tailored Strategies: By aligning strategies with the specific needs of each brand, we ensure that our approach is not one-size-fits-all. This tailored strategy allows us to leverage the strengths of OTT advertising effectively, whether it’s for building brand awareness or driving conversions. I’ve found that this personalized approach not only enhances accountability but also fosters stronger relationships with clients as they see their unique needs being addressed.

OTT Stats: Viewership, Ad Investments, and App Growth

As the future of television becomes increasingly digital and data-driven, brands with advanced digital strategies are integrating OTT (over-the-top) advertising into their performance mix. This shift reflects the changing landscape of media consumption, where streaming video has become mainstream, particularly among younger audiences. Their viewing habits have transitioned from traditional cable to streaming services and OTT apps like Netflix, Hulu, Roku, Crackle, Plex, PlutoTV, Vimeo, Vevo, and many others.

Recent statistics highlight this trend: In 2023, 83 percent of consumers in the United States were using a subscription video-on-demand service, marking an increase of over 10 percentage points in just five years. This significant growth underscores the shift in how audiences consume content and the importance of adapting advertising strategies accordingly.

Where viewership consolidates, ad spending follows suit. Between October 2021 and January 2022, U.S. OTT ad spending reached $4 billion, accounting for 13% of the total $32 billion digital ad spending. This substantial investment indicates that brands are recognizing the value of OTT as a viable advertising channel.

Beyond the increasing viewership of OTT videos, over-the-top marketing platforms are becoming more sophisticated. They now offer brands full-funnel targeting and attribution capabilities that were not available just a few years ago. This advancement allows advertisers to track the effectiveness of their campaigns more accurately and optimize their strategies for better results.

In my experience, OTT video presents significant opportunities for two types of brands: traditional TV advertisers looking to recapture impressions and reach that have diminished through conventional channels and challenger brands that may not have direct broadcast budgets but can now compete in the TV space through OTT.

As consumers continue to migrate to OTT channels and Connected TV, brands must approach this medium with the mindset that it can be effective. Understanding how to leverage OTT advertising to their advantage is key. By embracing this shift and utilizing the advanced targeting and measurement capabilities available, brands can effectively engage with their audiences in a rapidly evolving media landscape.

How to Create an OTT Advertising Strategy?

Creating an effective OTT (over-the-top) advertising strategy can seem daunting, but with the right approach, it can be a straightforward process. While it’s often beneficial to rely on experts in the field, here’s a simple step-by-step guide to help you get started:

Plan the Campaign

Begin by identifying your target audience. Understand who they are, what they like, where they live, and their viewing habits. This foundational knowledge will help you tailor your advertising campaign for OTT effectively.

Pick Your Audience

With OTT ads, you have the ability to choose who sees your ads. Segment your audience based on interests, behaviors, and demographics. This targeted approach ensures that your ads reach the most relevant viewers, increasing the likelihood of engagement.

Choose an OTT Platform

Select the OTT platforms where your ads will be displayed, such as Hulu, Roku, or others. Collaborate with advertising professionals to configure your ad placements across various streaming services. This step is crucial for maximizing your campaign’s visibility.

Make Ad Content

Create engaging and relevant ads that resonate with your target audience. Consider various formats, such as commercials, promotional videos, or short clips. The content should be compelling enough to capture attention and encourage interaction.

Buy Ads

After selecting your platforms, purchase ad space for your campaigns. You can do this directly through the platform or utilize AI tools to automate the process. This can streamline your efforts and ensure efficient ad placement.

Set a Schedule

Once you’ve secured ad space and defined your audience, establish a schedule for when and where your ads will appear on the OTT platform. Timing can significantly impact the effectiveness of your ads, so consider peak viewing times for your target audience.

Check Performance

Monitor the performance of your ads closely. Track metrics such as viewership, click-through rates, and conversions. This data will provide insights into how well your ads are resonating with viewers.

Make Improvements

Based on the performance data, be prepared to make adjustments. This could involve tweaking your ad content, changing the timing of your ads, or refining your audience targeting. Continuous optimization is key to maximizing your campaign’s effectiveness.

Review Success & Mistakes

After your campaign concludes, compile a report detailing its performance. Analyze what worked well and what didn’t. This reflection will help you identify areas for improvement and inform your strategy for future campaigns.

Which Devices Display OTT Ads?

Over-the-top (OTT) video advertisements can be displayed across a wide array of devices and streaming services. Essentially, if a device streams video over the internet, it can support OTT ads. Here are some of the most popular OTT delivery channels.

Mobile Devices: Smartphones and tablets are significant platforms for OTT ads. With the increasing consumption of video content on mobile, advertisers can reach audiences wherever they are. This flexibility allows for targeted advertising based on user behavior and location.

Personal Computers: OTT ads can also be displayed on desktop and laptop computers. Many viewers watch streaming content through web browsers, making PCs a vital channel for reaching audiences. This is particularly relevant for those who prefer larger screens for their viewing experience.

Smart TVs/Connected TVs: Smart TVs and connected TVs (CTVs) are among the most common devices for OTT advertising. These devices are designed to access streaming services directly, providing a seamless viewing experience. Advertisers can leverage the large screen to deliver impactful ads that capture viewer attention.

Streaming Devices: Devices like Roku, Amazon Fire TV, and Apple TV are dedicated platforms for streaming content. These devices often come with built-in apps for various streaming services, making them ideal for displaying OTT ads. Their popularity continues to grow as more consumers shift away from traditional cable.

Gaming Consoles: Gaming consoles such as PlayStation and Xbox also support OTT ads. As these platforms increasingly offer streaming services, they present a unique opportunity for advertisers to reach a younger, engaged audience. This crossover between gaming and streaming can enhance ad effectiveness.

However, it’s important to note that OTT ads don’t just “appear” on any of these devices. Content delivery is facilitated through a variety of OTT distribution channels. These channels ensure that ads are served in the right context and to the right audience, maximizing their impact.

Key Types of OTT Platforms & Distribution Channels

When discussing OTT (over-the-top) advertising, it’s essential to recognize that these channels deliver both ads and content directly to consumers. Viewers can access a wide array of on-demand movies, shows, and original content on platforms like Netflix and Amazon Prime. These platforms also incorporate targeted ads, ensuring relevance to individual viewers through data-driven insights. This evolution in content delivery and advertising effectively caters to modern consumer preferences while challenging traditional TV models.

However, the streaming video landscape can be pretty complex and fragmented, encompassing various devices, channels, platforms, and publishers. Understanding this complexity is crucial for navigating the OTT advertising space effectively.

Subscription Video Streaming (SVOD)

Subscription video-on-demand (SVOD) streaming services require viewers to purchase a subscription to access their content libraries. While some SVOD providers offer an entirely ad-free experience, major platforms like Disney+ are beginning to introduce ad-supported tiers at discounted rates for subscribers. This shift allows them to cater to a broader audience while still generating revenue from advertisements. Notable examples of SVOD services include Netflix, Hulu, and Amazon Prime Video, each offering a diverse range of content to their subscribers.

Ad-Supported Video Streaming (AVOD)

Ad-supported video-on-demand (AVOD) streaming services provide free content to consumers, relying entirely on advertisements for revenue. Viewers typically encounter ads before, during, and after watching content, making it a popular choice for those who prefer not to pay for subscriptions. This model allows users to access a wide variety of programming without any upfront costs. Some of the most popular AVOD services today include Crackle, Tubi, and Vudu, which have gained traction among consumers looking for free entertainment options.

Virtual Multichannel Video Programming Distributors (vMVPD)

Virtual Multichannel Video Programming Distributors (vMVPDs) offer a streaming service that mimics a traditional cable package, providing subscribers with a selection of live TV channels delivered over the internet. For instance, YouTube TV allows subscribers to stream live sports from local stations, while Sling TV offers access to over 100 national channels. This model combines the convenience of streaming with the familiarity of traditional television, appealing to viewers who want the flexibility of on-demand content alongside live programming.

Types of OTT Ad Formats

When it comes to OTT (over-the-top) advertising, various ad formats can be utilized to engage viewers. Each format has its own set of pros and cons, making it essential for advertisers to choose the right one based on their campaign goals. Here’s a breakdown of the most common OTT ad formats:

Banner Ads

These are small ads that appear at the top or bottom of the screen while viewers are watching content.

Pros

Non-intrusive and don’t disrupt the content.

Provide constant visibility while viewers are engaged with the content.

Cons

Limited space for conveying a message.

It may not grab as much attention as other ad formats.

Overlay Ads

These ads appear on top of the content without interrupting the viewing experience and are usually clickable, leading to a landing page.

Pros

Non-disruptive and maintain the viewing experience.

Typically clickable, allowing for user engagement.

Cons

Limited screen space for content and branding.

Effectiveness depends on viewer interaction.

Pre-roll Ads

These brief ads typically last for 15-30 seconds and show up before the main content begins.

Pros

Ensure high visibility as they play before the main content.

Provide a captive audience, as viewers must watch them to access the content.

Cons

It can be seen as interruptive and may annoy viewers.

Limited time to convey a message effectively.

Mid-roll Ads

These ads pop up in the middle of the content, often after a specific time, and are generally longer than pre-roll ads, ranging from 30 seconds to a few minutes.

Pros

Reach viewers during a content break, often when engagement is high.

Longer duration allows for more comprehensive messaging.

Cons

It can disrupt the viewing experience and lead to viewer frustration.

Placement timing is crucial to avoid annoyance.

Post-roll Ads

These ads appear after the main content ends, often longer than pre-roll ads, with durations ranging from a few seconds to several minutes.

Pros

Capture viewers’ attention after content completion.

Extended duration provides space for storytelling and brand messaging.

Cons

It may be skipped by viewers eager to leave the platform.

Limited control over viewer engagement after the content ends.

How Do You Buy OTT Ads?

Accessing OTT (over-the-top) ads can be complicated for newcomers, primarily due to the fragmentation of platforms and the various business models that distribute inventory. Understanding how to navigate this landscape is crucial for brands looking to leverage OTT advertising effectively.

In general, there are two primary ways brands can buy OTT advertising: Guaranteed Insertion Orders (IOs) and Programmatic Buying. Each method has its own advantages and trade-offs.

Guaranteed Insertion Orders (IOs)

Guaranteed IOs involve set-priced, set impressions that are usually based on reach and frequency. This method provides advertisers with a clear understanding of what they are purchasing, including the number of impressions and the cost associated with them.

Pros

Predictability in terms of costs and impressions.

Assurance of ad placements on specific platforms or channels.

Easier to plan and budget for campaigns.

Cons

Less flexibility in adjusting campaigns once they are set.

May not take full advantage of real-time data and audience insights.

Programmatic Buying

Programmatic buying operates in a real-time bidding environment, allowing advertisers and agencies to maintain control over targeting. This method leverages data and algorithms to optimize ad placements dynamically. However, it does not guarantee set impressions or frequency.

Pros

Greater flexibility and adaptability to changing market conditions.

Enhanced targeting capabilities based on real-time data and audience behavior.

Potential for cost savings through competitive bidding.

Cons

Less predictability regarding the number of impressions and overall costs.

Requires a deeper understanding of programmatic technology and strategies.

Personal Thoughts

In my experience, choosing between Guaranteed IOs and Programmatic Buying largely depends on the specific goals and resources of the brand. For advertisers seeking predictability and a straightforward approach, Guaranteed IOs can be a great option. However, for those looking to leverage data-driven insights and optimize their campaigns in real time, programmatic buying offers significant advantages.

Understanding the trade-offs between breadth and depth in OTT purchasing models is essential. Brands should assess their objectives, budget, and desired level of control when deciding which method to pursue. By aligning their purchasing strategy with their overall marketing goals, advertisers can effectively navigate the complexities of the OTT landscape and maximize their advertising impact.

Buying OTT Ads: Closed vs. Open Ecosystems

When it comes to purchasing over-the-top (OTT) inventory, an important consideration is the distinction between open and closed ecosystems. Understanding these ecosystems can significantly impact your advertising strategy and effectiveness.

Closed Ecosystems

In a closed ecosystem, such as Amazon OTT, advertisers gain access to all OTT inventory served through Amazon devices. This means that the inventory, measurement, data, and buying entry points are all contained within Amazon’s platform.

Pros: Access to rich data and measurement tools specific to Amazon’s audience. Streamlined the buying process within a single platform, making it easier to manage campaigns.

Cons: Limited to the inventory available within that ecosystem, which may restrict reach. Potentially less flexibility in targeting and optimization compared to open ecosystems.

Open Ecosystems

Open ecosystems, like NBC Universal, allow brands to access inventory across multiple publishers. This model provides greater flexibility and the ability to reach audiences across various platforms and devices.

Pros: Broader access to inventory, enabling brands to reach diverse audiences. Enhanced targeting capabilities across multiple channels, which can lead to more effective campaigns.

Cons: More complex management of campaigns across different platforms.

Potential challenges in measuring performance consistently across multiple publishers.

Strategic Considerations

When planning your OTT buying strategy, the conversation often revolves around the choice between open and closed ecosystems. For certain brand initiatives, it may make sense to work within a closed ecosystem like Amazon or Google to leverage their data and measurement capabilities. This can be particularly beneficial for brands looking for a streamlined approach with specific audience insights.

However, for other initiatives, it might be more advantageous to buy programmatically from an open ecosystem like NBC Universal. This approach allows access to inventory and the ability to reach audiences across multiple devices and channels, enhancing overall campaign effectiveness.

The Importance of Diversification

The reality is that no single platform sells everything. Ad inventory in any given hour can be split among several publishers, making it challenging to maintain a close connection with your audience if your inventory is consolidated with just one publisher.

OTT video ads on a given channel can be divided among multiple publishers within a single hour-long segment. This is why diversifying your OTT advertising across multiple services can be beneficial. By doing so, you can ensure that your message reaches your audience effectively, maximizing engagement and impact.