Demand for On Demand
The COVID-19 pandemic has had a major impact on everyday life. This applies to almost all aspects of our lives, including the way we work. “Between shelter-in-place orders and social distancing measures, it’s no surprise the media is taking on an increasingly important role in consumers’ lives. It’s projected that there will be approximately 289 million new over-the-top video streaming users in 2020, an increase of 24% year-over-year1. And, as a result of the pandemic, 62% of the content video streaming viewers have watched on streaming services was new to them.” Over the top video streaming, commonly referred to as OTT, is an increasingly growing medium for advertising. Streaming content continues to grow, which in turn, creates an opportunity to reach users. Google Ads and paid social ads have been and remain to be very successful as social media and the internet continue to become increasingly popular. Now, On Demand has never been so in demand.
Companies and agencies are finding success using OTT to reach their audiences. As younger generations continue to “cut the cord” and move away from basic cable, OTT becomes more and more effective. What started out as On-Demand Video offered by cable companies has expanded to streaming services for nearly every channel and content outlet. Smart TVs and tech services such as ROKU promote the use of these streaming apps. OTT allows for companies to buy a certain amount of impressions to make on viewers. In comparison, traditional cable commercials are sold in time slots. The amount of impressions made by these traditional commercial spots is based on whether or not the viewer remains on the channel during the commercial break. Through streaming OTT, the provider ensures a company’s ad will be viewed as many times as a company pays for. The OTT route takes some risk away compared to the traditional commercial method and also allows for a more advanced method of reaching your target demographic. Certain OTT vendors are able to create an audience so that the ads placed are more relevant to the users the spot intends to make an impression on. For example, a commercial for Fanatics apparel would be more effective on ESPN+ and for users who viewed their website in the last 30 days using OTT rather than a traditional spot placement on cable.