Last month, I spoke at NAB’s Small Market Television Exchange (SMTE) Conference on the Demystifying OTT panel to share insights on the challenges and growth opportunities for local broadcasters as viewers shift into the OTT space.
Consumers are embracing OTT viewing options, and the accelerating adoption is projected to put the premium OTT market in the US at $21 billion by 2020, according to a new MTM report. As such, content owners should move quickly to not only follow but also attract viewers.
To succeed today, TV and content providers need to woo audiences with enticing content, enhance the user experience with greater personalization, and be everywhere their viewers are.
Here are key takeaways from the session:
Partnerships are key for broadcasters to speed roll-out of OTT offerings – In many instances, local broadcasters are still playing catch up to their audience, which have shifted, at least a portion of their viewing, to streaming platforms. To overcome distribution challenges, broadcasters should leverage the right partners to get to market faster with new OTT offerings. These may include vMVPDs such as Sling and aggregators like Pluto and Xumo. While owned & operated (O&O) digital properties are crucial for your most loyal viewers, they may garner limited viewership due to difficult discoverability.
Broadcasters need to expand beyond limited shelf-life programming – Many local broadcasters produce content with a brief shelf-life. Any app or service with good content longevity provides time-shifting viewers something to consume at all hours of the day. Building a successful OTT programming strategy requires broadcasters to re-evaluate their programming strategy.
Address scale challenges with product extensions – Achieving scale in premium digital video in local markets remains a challenge. Nimble broadcasters should focus on building out audience extension offerings, which will enable them to sell more inventory and generate more ad dollars. There are premium offerings, like PREMION, which ensure that ads are running in a brand safe and fraud free environment, unlike open exchange products.
Keep pace with the speed of change – Our industry is filled with digital acronyms (SSP, DSP, CPM, eCPM, OTT to name a few) and it’s changing quickly. Beyond speaking the language, it’s important to stay abreast on new capabilities in targeting and measurement to win over advertisers by simply educating them. It’s a great time to be an advertiser as more TV advertising can be measured than ever before.
If you’re not capturing the vast (and growing) streaming audience, then you’re losing them to your competition. How effective is your OTT content and advertising strategy? Let’s have a conversation.
Best practices for OTT success
By every measure, OTT (aka Connected TV or CTV) viewing is the new normal. With three in four U.S. households now consuming content on streaming services, advertisers and brand marketers are shifting bigger budgets into this rapidly growing channel. In fact, 78 percent of marketers plan to buy ad inventory on streaming TV within the next 12 months, according to a SteelHouse survey.
But for some marketers, the complexity and fragmentation of the OTT ecosystem remain hurdles to widespread adoption. To reap the benefits of OTT, you’ll need a deeper understanding of the solutions available.
What are the key considerations for developing an effective OTT buying strategy? Here’s our playbook to simplify the media-buying process to reach the vast and highly engaged streaming audience.
Data is king for OTT targeting
Data is fueling the OTT landscape but targeting and execution capabilities vary significantly among OTT providers. When planning their media buy, marketers need to consider whether they’re buying audience or content. Or maybe both. And when you’re doing data-driven targeting, where is the data coming from and how accurate is the viewer profile?
The latest OTT advancements allow marketers to use audiences instead of content to plan their campaigns. Audience segmentation can be truly deterministic and addressable down to an individual level. Data can be collected based on viewership and matched back to the individual within a household. Using non-personally identifiable viewer data, marketers can analyze content and match it to channel, program and ad placement data to better understand what types of viewers are watching each type of programming and what is triggering their purchase decisions.
In addition, first-party data collection on some OTT platforms offers the capability for online and offline attribution. This can give marketers richer insights on desired actions taken by a viewer that has been served an ad.
Inventory quality matters
Brand safety remains a paramount concern and advertisers need to understand what they’re buying. Since not all OTT quality is the same, determining inventory quality is imperative for marketers. Many providers claim they have directly sourced inventory, but it is important for marketers to know exactly where the inventory is coming from to ensure that their ads are running in a brand-safe and fraud-free environment.
What questions should you ask? Is it a direct buy with a network or ad solution platform, or through programmatic channels that source inventory from open exchanges and non-guaranteed PMP deals? Which is the right combination to give marketers what they need to ensure brand safety and provide the greatest reach?