Seizing Opportunities in CTV and OTT
One of the most compelling trends surfacing in early 2023 is that “subscription OTT streaming will reach one-half of time spent with linear TV in the U.S., but platform ad spend will be one-sixth of linear TV’s total,” according to eMarketer.
That said, there are plenty of opportunities in the CTV and OTT space for advertisers. We sat down with Sarah Atta, Rain the Growth Agency’s Digital Media Director, Digital Video, to discuss how brands are leveraging the digital video space.
Q: Why should DTC brands explore advertising on CTV and OTT?
A: Brands have the ability to target specific audiences that are most interested in their products and can drive them down the funnel by retargeting those viewers on display. There are more creative opportunities, beyond standard video commercials, for deeper engagement and highlighting unique selling points. Opportunities Include custom video units designed to drive engagement, clickable banners available on the CTV screen and high impact sponsorships to increase awareness and consideration.
However, some challenges do exist when it comes to creative restrictions based on either the brand itself or the creative message in the ad. Media partners have creative guidelines to adhere to for brand safety but working with a partner that is aware of these guidelines can be advantageous.
Q: Are you seeing more brands integrate CTV and OTT into their media mix? If so, why? If not, why not?
A: We are definitely seeing more brands increase investment in CTV as well as adding it to their media mix altogether. Historically, we have seen brands that cater to a younger demographic (ages 18-34) increase their investment in CTV, however, now we are seeing more brands across the board increasing investment as the viewership numbers are steadily increasing across each demographic group.
New ad-supported streaming video providers such as Netflix and Disney+ are also driving increased interest. I believe the ability to measure incremental reach, lift and performance within attribution platforms like iSpot, help quantify the success of CTV and provide unified measurement for CTV and linear television.
Q: What brands would benefit most from CTV and OTT advertising?
A: Through CTV and OTT advertising, brands have the opportunity to create an emotional connection between their brand and their target audience through impactful story-telling opportunities beyond static units, which is important for DTC brands that are still growing and establishing themselves in the marketplace. Market data tells us that individuals crave a connection with a brand throughout their decision-making journey. This channel will also offer the opportunity for brands to futureproof their business by interacting with consumers in a mixed reality/ virtual world (i.e. the metaverse, A.I.). The nature of media consumption is changing and CTV and OTT are great channels for leveraging tech innovation to reach consumers!
This article is featured in Media Impact Report No. 41. View the full report here.
