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OTT is a means for providing video content via streaming services over the internet. It bypasses traditional distribution services by the cable. 

What Does OTT Mean?

OTT stands for “over-the-top” or “topping up the excellence of entertainment” and refers to the technology that delivers streamed content. It is a convenient method of receiving film or television content over the internet whenever you want and across many different devices. 

In previous years, a consumer would have to take a cable subscription and their cable TV would be responsible for the supply and availability of programming. With OTT streaming platforms, you don’t need traditional broadcasts, cable, or satellite-pay-TV providers. 

Now users can simply sign up on an OTT platform and access their content over the internet. This transition has a significant impact on advertising helping brands to access a wider audience. 

What is OTT Streaming?

The two main types of OTT streaming are pay-to-access and free-to-access. Many of the OTT services operate on a paid subscription basis. However, many of these platforms also run advertisements as an alternative method for monetization. Some also use a mix of both these methods that allows users to have an ad-free experience with specific subscriptions. 

Difference Between OTT and Streaming?

The key difference between OTT and streaming is that the former refers to the platform that delivers the streaming content via the internet whereas the latter indicates the content that can be streamed. You can access an OTT platform via your computer, laptop, tablet, or smartphone to stream videos, music, and messaging. 

What are OTT Platforms?

OTT platforms are the ones where you can access the OTT content. The different types of OTT platforms include:

  • Major video OTT providers include Netflix, Amazon Prime, Hulu, Disney+, and YouTube
  • Spotify is considered an OTT platform that provides audio streaming services for music as well as podcasts. 
  • In regards to the internet messaging space, WhatsApp, Slack, Telegram and Signal are the major platforms. 
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Importance of OTT

The OTT platforms provide a great opportunity for OTT advertising. Much like legacy media advertising, these advertisements are carried out during episodes or songs. It is important to understand the types of OTT marketing set-ups to know how the advertising works.

  • Client-side

According to the client-side setup, the viewport for the streaming media loads the ad before the content is shown. The content can be anything, starting from a film to a music video. 

  • Server-side

On the server side, the ad is integrated into the frames of the media. Therefore, it is not possible to block the ads unless the OTT platform allows it. 

What are the Benefits of OTT Marketing?

The accessibility of OTT content is one of the integral reasons why it is so popular. Users only need a proper internet connection and connected devices in order to access the platform and stream its content. 

The increasing number of viewers on these platforms is offering advertisers to reach new audiences. Because of its feasibility, lots of companies are entering the OTT advertising space as it provides them with the ability to target specific households for their campaigns. They can show viewers personalized ads by tracking their click-through rates (CTR). 

Advertisements in OTT platforms are viewed by engaged audiences, leading to a higher number of viewers exposed to these ads. With greater attribution and real-time optimization, marketers can budget their ad allocation. The marketers are able to quantify the impact of the ads and leverage measurement, resulting in more conversions. 

Thus, OTT platforms have increased the scope of advertising. Because of the inclined use of mobile users, ads on these platforms have a higher viewing chance, increasing conversion rates. As more people choose to cut the cord and select online media, OTT services have a huge scope to capture greater revenue for many years. 

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