What is OTT Advertising?
Also known as Over-The-Top advertising, OTT advertising presents many benefits. Primarily, advertisers can reach audiences directly via streaming rather than depending on cable providers. OTT advertising is a natural by-product of CTV (connected TV). It’s important for advertisers to know and understand exactly what OTT advertising is and how it works.
Traditionally, cable providers controlled what people watched on TV. But now, 50% of users access video content via the internet. And are able to do so across multiple devices, be it a laptop, mobile device, tablet, or connected TV. They can stream content from any provider to anywhere.
Publishers and advertisers need to understand how OTT advertising works. As a relatively new discipline, there are many gray areas when it comes to gathering and securing data. Implementing OTT advertising with a privacy-first mindset will make sure you’re avoiding unnecessary risks.
OTT Advertising 101
With half the US population accessing video content through streaming services — and 60% of them young adults — it makes sense for publishers to pursue this new outlet for advertising. Not surprisingly, 60% of Digital Buyers plan to shift Linear TV dollars to CTV in 2021. Additionally, among buyers shifting linear TV budget to OTT/CTV in 2021, 80% said the main reason is targeting and efficiency.
There are a lot more benefits to OTT advertising, too:
- Advanced targeting and personalization capabilities
- Better visibility into performance metrics
- More reach and less competition for it
- Less expensive than traditional media advertising
- Available on a variety of devices (Xbox, Roku, etc.) and streaming services (YouTube TV, Hulu, etc.)
If you take a cross-channel approach to OTT advertising, you can essentially follow a potential customer with your offer wherever they go online.
When a customer sees advertising across, website, social media, mobile devices, or another OTT platform, their chances of making a purchase increases six to eight times. In fact, brands focused on multi-channel advertising like this see up to a 50% improvement in ROI 500% improvement in ROI.
OTT advertising could present a major bottom-line boost for publishers. But it’s also critical to understand and address the data privacy risks that come along with it.
OTT Advertising and Privacy
What makes OTT advertising so effective and attractive to publishers is the potential for highly personalized advertising seamlessly delivered across channels. Consumers want this, too, with 74% saying they’ve used multiple channels to begin, continue, and complete purchases.
But the very nature of collecting personal information from consumers and using it across so many channels and devices presents challenges of its own.
Publishers must capture, store, and use data with accuracy and integrity if they want to get the most out of their OTT advertising. The answers to specific questions can clue you in to where you stand on privacy compliance:
- Did users give consent for their data to be used for OTT advertising?
- Did users consent to data being used for advertising on every channel?
- Did you ask for permissions and did users grant it in a clear and transparent way?
- Is there a system set up to gather and track the activities of every user’s data?
- Is there a way for users to easily opt-out of OTT advertising?
By taking action publishers are able to increase transparency and communicate openly with their customers and give them control over their data preferences. This builds trust, putting publishers one step closer to gaining a loyal customer for life.
Stay Compliant with Technology for OTT
OTT advertising can be a game-changer for publishers. They just need to know what steps to take. Three practical ways to do this and ensure compliance are:
- Implementing IAB TCF 2.0.
- Complying with GDPR and CCPA requirements.
- Using a unique identifier to collect and apply consent.
OneTrust PreferenceChoice is a CMP for publishers designed to pave the way to privacy-first personalization. You get technology that gives your customers control over their data on OTT, leading to better segmentation, personalization, and addressability. Most importantly, this tool will allow you to meet compliance requirements across channels.
Further reading on What is a Consent Management Platform:
- DataGuidance News: India: TRAI releases recommendations on a regulatory framework for OTT communication services
- PreferenceChoice Blog: OTT and CTV: Similarities, Differences, and How to Deliver Transparency
- OneTrust PreferenceChoice OTT Solutions: OneTrust PreferenceChoice: OTT App Compliance
Next steps on Consent Management Platforms:
- Sign up for the webinar: OneTrust Launches OTT and CTV Webinar Collection
- Watch the webinar: Apple iOS 14, OTT, & CTV: The New Privacy Landscape