What is OTT Advertising in the Media Buying Mix?

September 5, 2023

Do you still have cable television in your home? Or have you cut the cord like millions of others around the globe? In 2023, 83% of consumers subscribe to a paid streaming service, an increase of 10% in the last five years. Some viewers use a combination of cable and streaming services, and others exclusively stick to streaming.  

So, what does this mean for your wellness brand? The growth of streaming users is showing no signs of slowing down! There are exciting new ways on the horizon to reach viewers that’ll be most interested in your products or services. Tapping into the potential of OTT advertising is just the start of everything you can do to take your brand to new heights! 

If you haven’t already, it’s time to get in on the OTT advertising on streaming services for your wellness brand. What is OTT advertising, you may ask? Becoming familiar with the various OTT devices and OTT service providers for your ad campaigns is essential. Let’s subscribe to these advertising trends together. We’ll walk you through it!  

What is OTT Advertising? 

When we look at the term OTT advertising, the OTT part stands for over-the-top. This term originated from streaming companies bypassing TV providers and going over-the-top of a traditional cable box. With OTT devices, no need to worry about broadcast schedules or geographic limitations. Using OTT service providers means you can watch your favorite shows and movies any day of the week at any time you want! 

It’s no surprise that OTT advertising has taken off in recent years. The ability to deliver ads directly to viewers through their OTT devices offers an incredibly personalized experience. With OTT advertising, these are ads viewers see during small breaks in between their shows or movies. They’ll usually see two to three ads at a time ranging from an average of 15 seconds to a minute long each.  

Types of OTT Devices 

The OTT devices or connected TV (CTV) devices used to stream will either be from apps on their mobile device, computer/laptop, gaming console, Smart TV, or an added device that allows their TV to stream from Wi-Fi. 

Some of the most popular OTT devices people use to stream from include: 

  • Roku 
  • Google Chromecast 
  • Apple TV+ 
  • Android TV 
  • Amazon FireTV 
  • Smart TVs (Samsung, LG, Vizio etc.) 
  • Sony PlayStation 
  • Microsoft Xbox 

These OTT devices are then used to access OTT service providers through paid subscriptions—we’ll list those next!  

Top OTT Service Providers  

It’s all about choices and customizing the perfect combination of streaming services for viewers. When it comes to streaming, many households use a combination of different OTT service providers to access the TV shows and movies they want to watch.  

Here are the top OTT service providers viewers are subscribed to: 

  • Hulu 
  • Sling TV 
  • Apple TV+ 
  • Netflix 
  • Peacock 
  • Disney+ 
  • Philo TV 
  • Paramount+ 
  • Amazon Prime Video 
  • Discovery+ 
  • Fubo TV 
  • YouTube TV 
  • ESPN+ 
  • Max 

These OTT service providers charge a monthly fee to use their streaming services, with options for basic plans that are ad-supported but cheaper than plans without ads. Many viewers opt for basic plans and don’t mind watching ads if it means paying less monthly!  

Benefits of Advertising on Streaming Services 

Wellness brands, take note! It’s predicted that CTV streaming is expected to surpass paid TV programming for the first time in history in 2024. Yes, you read that right, that’s next year! It’s clear that viewers are shifting to streaming services more than ever before. Now, it’s time to shift your advertising strategies too!  

Start advertising on streaming services for benefits such as:  

Added Versatility   

With OTT advertising, there are a wide variety of OTT service providers and OTT devices to reach your target audience. Wellness brands can decide which platforms they want to broadcast their ads on. It’s easy to adjust messaging and optimize advertisements in real-time.   

More Control Over Content  

Using OTT advertising gives wellness brands more control over their content and the messaging in their ads. This can be adjusted based on the particular audience the brand wants to reach. Brands can focus on customer-centric content, which is preferred by viewers and more beneficial to the brand.   

 Cheaper than Traditional TV Ads  

This is excellent news for wellness brands that don’t have the budget needed for pricey traditional TV ads. OTT advertising is more affordable because you get more qualified cost-per-thousand impressions (CPM) for less. There’s also a greater return on investment (ROI) with the diversity of OTT devices and audience segmentation, leading to improved conversions!  

Precision Targeting and Analyzing Consumer Behavior  

Another key benefit of OTT advertising is the ability to expertly target and analyze your viewers on a granular level. Precision targeting through advertising on streaming services will help you reach more of your audience relevant to your brand and what you offer. Wellness brands can reach a smaller but more targeted audience than traditional cable TV ads. The ability to target niche audiences through OTT service providers helps to fully utilize ad dollars. 

As you can see, the benefits of OTT advertising make it a prime choice for wellness brands to incorporate into their advertising strategies. This is only the beginning of all of the possibilities in store for advertising on streaming services!  

OTT Advertising and The Rise of Digital Consumption 

As digital consumption continues to grow at a rapid pace, this creates new advertising options and new audiences. Take advantage of all the benefits of advertising on streaming services, such as adding versatility, control over content, affordability, and precision targeting. Embark on new horizons and reach your target audience on your own terms.  No need to ask what is OTT advertising—now you’re ready to implement it into your digital marketing plans. Learn more about OTT advertising and how Cultivating Media can help you rethink your strategy. We can’t wait to help you grow your wellness brand!

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