With the rise in premium video content and cord-cutting, the demand in OTT content has been increasing in tandem. At present, the number of households that pay for TV is almost the same as the number of households that subscribe to Over the Top Content. Naturally, this has led to a strong growth of ott advertising as the marketers know the need to follow the audiences. However, the time-shifted and fragmented audiences have posed quite a challenge to the advertisers in terms of reaching the right viewers. The advertisers need have rich data to have a good understanding of the OTT market for media planning. The industry needs to advance more quickly for solving addressability in OTT.
Addressability in Over the Top content
Addressability is the ability of serving different kinds of ott advertising to different segments of audience watching the same programs. For advertisers, this is crucial as it entails delivering the right advertisement to the right person, regardless of the type of content viewed. This ensures higher relevancy for the viewers and increases ROI and efficiency of a media buy, and therefore, reduces waste.
Though ott advertising has gained momentum, achieving a scale of measurement remains an issue. It is challenging for the brands and agencies to have scalable and representative media plans while applying addressable targets at regional and local levels.
Data as the next frontier in OTT boom
Addressability in OTT needs having high precision to target at the household level, and then, the viewer level. This is accomplished by collection and analysis of the viewer data by making audience sections, like travelers or automobile intenders. The advertising campaigns then make use of these sections. Finally, through dynamic ad insertion in real-time, the ads reach viewers depending on the audience section that they come under. Thus, by using the datasets for triangulating viewers, the marketers can identify the audience sections to offer customized ads.
Addressability in OTT is similar to the direct TV buys. In terms of those brands with traditional television strategy, this furthers the reach and offers precision. For instance, in the world of TV, if one brand tries to reach out to auto-intender men aged from 20 to 50, they would use relevant targeting based on content like live programming and sports channels.
Going by actual OTT addressability, targeting is based on audience and not data. It is based on matching the third-party data and data collection to deliver precise and rich content by targeting viewers (an amalgamation of zip code, audience, and content). It paves way for better targeting by considering the IP address and pairing it with other kinds of data preferences.
Moreover, the data collected through this method does not rely on people registering their information correctly and then fetching the probable interests, which is something done by the social media platforms. Audience section in Over the Top is addressable to the individual level. Data is collected on a level of actual viewership and matched according to each person with a house through advanced technology.
At present, it is possible to solve the widespread issue of addressability and scale in Over the Top advertising with the help of technology that can fill in the space between audience sectioning and data collection. But there is still a significant amount of work left for the industry in terms of delivering cross-media analytics and planning, enhanced attribution of OTT, and the ability of executing at a scale. By utilizing actual audience insights for OTT, the delivery of advertisers and agencies can be highly precise, rich targeting will offer superior personalization and the delivery of highly relevant advertisement to the consumers.