What is the best OTT platform for your business?
OTT, or over-the-top, platforms are those that stream video content directly to viewers over the Internet.
As such, this type of video streaming service provides marketers with opportunities to advertise their products and services to viewers directly on their display devices.
The benefits of OTT advertising are abundant: targeted advertising, advanced analytics, and dynamic ad insertion that allow you to engage with your audience in a variety of ways.
When connecting with modern audiences, OTT platforms are the way to do it. But which OTT platform provider is the most effective for your business? Read on to learn more about the best OTT platforms for advertising and marketing.
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What is an OTT platform?
Chilling out with your favorite Netflix show on a smart TV, watching a podcast on your phone's Spotify app, or watching a New York Times news on your laptop?
All of these actions have one thing in common: over-the-top platforms.
Over-the-top, or OTT, describes any content streamed directly from the internet (as in, not via radio broadcast, network television, or cable).
In recent years, streaming audiences have grown rapidly, making OTT platforms some of the most fertile advertising territories on the market.
While all OTT platforms operate over an internet connection, there are two different types of OTT platforms that affect the way marketers can advertise to viewers: pricing models and content source models.
Pricing models
All OTT content is accessed in one way: over the Internet, but not all OTT platforms allow access in the same way. To open their content to customers, all streaming services choose one of three pricing models:
Subscription (SVOD for video): Some OTT platforms adopt subscription plans, where users pay a fee (usually higher) to access content without advertising.
Streaming services like Netflix, Amazon Prime, and Disney Plus use this model. Unfortunately for marketers, it blocks any advertising possibility.
Ad-Based (AVOD for Video):To replace subscription fees, other OTT platforms run entirely on ads.
This model includes streaming services like Tubi TV, Pluto TV, Sling TV, Xumo, and Sony Crackle. Depending on the platform, these can be great options for advertisers.
Hybrid: As a combination of subscription plans and ad-based platforms, hybrid models offer subscription and ad-supported options to their customers.
For example, Hulu offers viewers a lower-cost subscription with ads or a higher-cost subscription without ads. Similarly, Spotify offers free accounts with ads or premium subscriptions for an ad-free experience.
Since subscription-only models have no commercials, marketers can only use hybrid or ad-based OTT platforms to reach their target audience.
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