OTT Marketing: The next frontier for sponsorship
- May 19, 2022
- SponsorPulse Staff
Advertising is constantly evolving. From the bygone Mad Men era, when a print ad in a reputable publication could skyrocket a brand's success, to the modern marketing advancements of today, advertisers have adapted to every pivot the industry has thrown their way.
The most recent game-changing strategy in every CMO’s toolbelt? OTT marketing. This influential advertising approach has provided brands with unparalleled access to audiences worldwide.
Looking to sharpen your competitive edge? Here’s the lowdown on OTT marketing and how it can support your sponsorship opportunities:
What is OTT Marketing?
OTT, or over-the-top marketing, is the delivery of ads through online video streaming platforms. It enables advertisers and streaming companies to reach audiences directly while bypassing TV providers in the process.
While advertisements traditionally had to follow rigorous guidelines set out by broadcasters and the corporations that funded them, OTT provides a direct channel to audiences worldwide. Those startlingly-targeted Youtube ads that play before videos? OTT.
The rise of OTT marketing aligns seamlessly with the global migration away from traditional cable providers, or “cord-cutting”, and this benefits advertisers and audiences greatly. From the marketer’s perspective, the OTT industry is thriving, and audiences are increasingly shown ads for products they actually want to purchase.
Through a demographic lens, of households that describe their relationship with cable TV as “cord-cutter” instead of “cable subscriber” 74% were between the ages of 18-34, and 64% were aged between 35-54. These numbers highlight that the streaming era is here to stay, with Gen X, Millennials, and Gen Z leading the charge away from cable, making OTT all the rage.
The Benefits of OTT Marketing
Reaching Niche Audiences
The days of monoculture are long gone. In this digital age of diverse online communities, there’s space for everybody.
This wealth of choices extends to streaming. While those who enjoy the escapism of watching movies with happily-ever-afters may flock to Disney+, people with grittier palates may prefer to spend their subscription dollars on a prestige TV platform like HBOmax. With a vast array of streaming services that cater to unique personas, OTT marketing is ideal for marketers looking to connect with niche audiences.
Plus, streaming services often go the extra mile, providing in-depth demographic data on their users, allowing advertisers to experience enhanced transparency regarding who is actually seeing their ads. OTT marketers also know what time viewers see their ads, and what type of device they’re watching them from, making it easy for them to pivot and optimize their ads as necessary.
These insights, when paired with SponsorPulse data, help advertisers gain a crystal clear image of their target audience. By enabling marketers to filter by property and brand, as well as a host of consumer behavior metrics, SponsorPulse has the power to elevate OTT marketing opportunities to new heights.
Fan excitement for sport properties trends higher among OTT users.
Optimizing Ad Spend
Every marketing campaign is a critical opportunity to capture attention, and unfortunately, traditional TV marketing is akin to throwing something at the wall and hoping it sticks – oftentimes ineffective.
Fortunately, the detailed audience targeting that OTT provides enables advertisers to optimize their ad spend, ensuring their ads are only shown to those who are likely to be interested in their brand.
Reaching new audiences has never been easier than with OTT marketing. Just look at Drive to Survive. The Formula 1 docuseries premiered on Netflix to rave reviews, cultivating a new generation of fans from streamers who weren’t previously invested in racing at all.
The typical sports fans’ interest expands well beyond sport, with entertainment being a key opportunity area for marketers looking to connect with the cohort. In fact, SponsorPulse data shows that 70% of sports fans watch and follow reality TV.
With that in mind, it’s no surprise that Drive to Survive served as a powerful OTT marketing vehicle for Formula 1, no pun intended. The series masterfully blended the worlds of sport and entertainment, increasing audience interest in Formula 1 while providing viewers with an insider's view into the wild world of racing.
The results? Staggering. Since Drive to Survive premiered, Grand Prix revenue has skyrocketed 87% to an unprecedented US $2.14 billion, while the legion of fans that make up its broadcast audience bumped to 1.55 billion.
Cut through the Noise with SponsorPulse
Streaming platforms have provided the opportunity of a lifetime for savvy marketers looking to bypass the limitations of broadcast marketing, revolutionizing not only the entertainment industry but the ad world as well.
With OTT marketing, strategic brands can benefit from the immense potential for growth that it encourages. At SponsorPulse, we equip brands and properties with robust analytics regarding their target audience, enabling them to optimize their OTT marketing efforts and truly hit the mark.
Take a tour of our platform today!