OTT advertising offers a high degree of certainty and control that revolutionizes how advertisers engage with their audiences. Techniques such as hyper-targeting, geofencing, and pixel tracking significantly enhance the effectiveness of OTT advertising, leading to more leads and better ROAS. Here’s how.
1. Hyper-Targeting with OTT Advertising
OTT advertising allows marketers to eliminate wasted impressions by ensuring that their ads are only delivered to the most relevant audiences. Unlike traditional TV spots, where advertisers may reach a broad demographic without knowing exactly who saw their ad, OTT requires viewers to actively stream content on their devices. This means that every impression is guaranteed, as the ad is delivered to a device that is actively engaged with by the user.
OTT advertising platforms also offer advanced targeting capabilities that go beyond age and gender demographics. Marketers can now target specific interests, behaviors, and even recent purchase behaviors. For instance, an advertiser promoting skincare products can target individuals who have purchased skincare items in the last 30 days. This granular level of targeting ensures that ads reach the right people at the right time, increasing the likelihood of a direct response from the audience.
2. Geofencing for Localized Impact
Geographic targeting has also seen a significant upgrade with OTT advertising, thanks to geofencing technology. Rather than settling for broad targeting entire counties or cities, advertisers can pinpoint precise zip codes where their target audience resides or frequents. This level of location-based targeting allows businesses to optimize their ad spend and ensures that their messages reach potential customers in specific regions, thereby maximizing their impact.
For example, a local brick-and-mortar store can use OTT advertising with geofencing to target potential customers within a certain radius of their physical location. By doing so, they can create hyper-relevant campaigns and increase foot traffic to their store.
3. Enhanced Tracking with Pixel Technology
One of the most significant advantages of OTT advertising, specifically when activating programmatically, is the ability to track ad performance and user behavior with pixel tracking. Unlike traditional TV ads, where measuring the actual impact on conversions was challenging, utilizing any DSP (demand-side platform) enables advertisers to gain deep insights into the success of their campaigns.
Pixel tracking involves placing a piece of code on the advertiser's website or landing page, which allows them to track user activity after exposure to the ad. Advertisers can see if users who watched their ad went on to visit their website, made a purchase, or took any other desired action. This level of attribution provides valuable data on ad effectiveness and ROI.
Moreover, OTT pixel tracking can track user behavior up to 90 days post-exposure. This extended tracking period is particularly beneficial for understanding the longer customer journey and decision-making process. It's essential to recognize that the modern consumer's buying behavior has changed, and they might take more time to make a purchasing decision due to the abundance of options available. OTT's extended tracking helps marketers capture these delayed responses and make informed decisions about their advertising strategies.
Related article: The Impact of First-Party Data to Improve Connected TV Advertising Results
OTT advertising has transformed the way marketers approach direct response campaigns. The ability to hyper-target specific audiences, leverage geofencing for localized impact, and track user behavior with pixel technology has revolutionized the advertising landscape.
OTT is a powerful tool for driving direct response and achieving marketing objectives as its advertising provides greater certainty in impression delivery and an enhanced understanding of campaign performance compared to traditional TV advertising.