Regarding advertising, brands can use two major methods to reach their target audience: traditional TV advertising and OTT advertising. The big question is, which channel yields the best results? Read on as we explore OTT advertising vs. traditional TV advertising.
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What is OTT Advertising?
OTT, or over-the-top advertising, refers to placing ads on streaming platforms like Hulu and Amazon Prime. Unlike traditional TV advertising, OTT advertising focuses on the “lean-in” experience.
This means that viewers have opted-in to watch their favorite shows and are already paying for their content.
What’s truly astonishing is that some of these OTT video ads are packed with interactive features, like polls or surveys. So, you’re not just sitting there, passively watching the ads; you’re actively engaging with the content!
It’s a win-win situation for everyone involved: you get a say in the ads you see, and advertisers receive invaluable feedback to enhance their campaigns and make them even more effective.
What is Traditional TV Advertising?
Traditional TV advertising, a long-standing method of reaching viewers through television sets, involves crafting ads that appear on various television networks and cable channels. These ads can take the form of commercials, promotions, or product placements.
Despite the rapid growth of digital advertising, traditional TV advertising remains a potent way to reach extensive audiences and is often considered the most effective form of advertising.
However, it is essential to consider TV viewership data when planning and executing such campaigns to maximize their impact and efficiently target the desired audience.
The Pros and Cons of OTT Advertising
Pros of OTT Advertising
Targeted Advertising
OTT advertising allows for highly targeted advertising based on user behavior and preferences. Since streaming services collect user data, advertisers can use this information to target specific demographics, such as age, gender, location, and interests.
Reach
OTT advertising has the potential to reach a large and diverse audience. With streaming services becoming increasingly popular, the number of viewers who watch TV shows and movies online has grown significantly.
Flexibility
OTT advertising offers more flexibility compared to traditional TV advertising. Advertisers can choose the length of their ads and show ads before, during, or after a video. This flexibility allows for more creative control and the ability to tailor ads to specific content.
Cons of OTT Advertising
Ad-Blocking
One of the biggest challenges of OTT advertising is the ability of viewers to use ad-blocking technology. This means that viewers can skip or block ads, reducing the chances of engagement.
Expensive
OTT advertising can be costly, especially for small businesses. Traditional TV advertising has a standardized pricing model with much higher upfront costs. OTT advertising rates vary depending on the service provider and the type of ad. However, these ads are more targeted, so the increased cost often comes with increased performance.
The Pros and Cons of Traditional TV Advertising
Pros of Traditional TV Advertising
Trusted Medium
When viewers see a commercial on TV, they often perceive it as a reputable source of information. It has a level of trust and credibility that other forms of media may not have. This trust can lead to higher engagement and increased brand loyalty.
Creative Opportunities
TV advertising allows for creative opportunities that other mediums may not provide. Advertisers can use visual effects, sound, and storytelling to create memorable and impactful ads.
Cons of Traditional TV Advertising
Expensive
One of the biggest challenges of TV advertising is the high cost. TV advertising rates are based on factors such as the time of day, the ad’s length, and the audience’s size.
Limited Targeting
TV advertising has limited targeting capabilities compared to digital advertising. Advertisers can only target their ads based on the program and time slot rather than specific demographics or interests.
Ad Avoidance
With the rise of streaming services and DVRs, viewers can skip or fast-forward through commercials, leading to decreased ad engagement.
So, Which One Is Better?
The decision between traditional TV advertising and OTT advertising depends on the specific needs and goals of the business.
However, by using a strategic approach and combining the strengths of both mediums, businesses can create a comprehensive advertising strategy that maximizes their reach and engagement.
