Programmatic OTT Advertising: An Overview
![Programmatic OTT Advertising: An Overview](/blog/content/images/2024/06/Set-1---Blog5.jpeg)
In today’s competitive landscape, where brands are finding new ways every day that can help them stand out among others, programmatic OTT advertising is a trend that has gained huge traction. This is a combination of two of the most effective strategies, which makes it almost incomparable to any other strategy in the market. To understand what programmatic OTT advertising is, let’s break it down into two terms: programmatic and OTT.
Programmatic: Programmatic advertising involves the use of automation software to purchase digital ad space. This helps brands place ads that are only targeted at a specific audience. This is a popular advertising trend that has replaced the traditional methods of selling digital ad spaces while eliminating the need for negotiations.
OTT: In current times, the definition of entertainment has changed. People are increasingly shifting away from traditional cable TV platforms to watch their favorite content on new platforms. This has also created new opportunities for advertisers, with OTT ads being one of them. OTT or over-the-top platforms have gained huge popularity as they are delivering content to viewers directly through the internet, and OTT ads allow the brands to reach people where they already are.
In simple words, programmatic OTT advertising can be defined as the customized and automated process of exchanging digital ad space between advertiser and publisher through real-time bidding via streaming platforms and CTV devices.
Why Should Advertisers Consider Programmatic OTT Advertising?
In the current scenario, the increasing importance of using programmatic methods to boost OTT advertising success is something that cannot be ignored. OTT alone can prove to be a game changer because of its targeting capabilities, but when combined with programmatic advertising, it can actually give the upper hand to the advertisers. Programmatic advertising has revolutionized the way of selling and buying ad inventory and slowly became a critical component of digital marketing.
Programmatic advertising enhances the opportunities created by OTT by combining target audience efficiency with wider reach, quicker bids, and purchases. Simply put, programmatic OTT advertising is the most efficient way to ensure that a brand is reaching the right people at the right time.
Benefits
Here are some of the major advantages of using programmatic OTT advertising:
Automation
Gone are the days when you needed hours to buy digital ad space. The best thing about programmatic OTT advertising is hassle-free ad buying, all thanks to the real-time bidding process. It not only saves a significant amount of time but also reduces the effort required as well.
Algorithmic
In programmatic ad buying, algorithms are used to pinpoint when and where to deliver the ad content to the audience. It is done by using the data collected from a large group of users. These algorithms also help in buying the ad space that is relevant to the criteria.
Precision Targeting
With access to demographics, location, device, operating system, browsing history, etc., it gets a lot easier to target high-potential users. This precision targeting helps your brand message reach the right people while reducing ad waste.
Ad Interaction Funnel and Detailed Analytics
Setting a clear goal for your advertising campaign helps you determine its success. In programmatic OTT advertising, you get real-time reports along with detailed analytics. So, it gets easier to optimize and make changes to the ongoing advertising campaigns.
Given all these reasons, programmatic OTT advertising is definitely a better choice when compared to traditional methods that are less data-driven. Today, a number of leading names are utilizing this effective strategy to raise brand awareness. Some of these are Fidelity Trading, Microsoft Teams, Apple News+, Subway, etc. [source]
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