By: Jill Wolverton On: October 17, 2019 In: Evolution of TV

OTT (Over-the-Top) refers to film and television content provided via a high-speed Internet connection rather than a cable or satellite provider. According to Marketing Charts, “Some 79% of homes have at least one OTT device to stream content.” Devices include everything from streaming sticks and SmartTVs to cell phones, tablets, laptops, and gaming consoles.

OTT ads are an effective way of reaching a target audience. These ads can be highly targeted, unskippable, trackable, brand-safe leading to you advertising dollars that make an impact. When DVR services were added to cable, it gave viewers the option to skip most or even all of the ads that flooded the network tv programming. OTT gives advertisers the opportunity to target their audience and make sure viewers are seeing their ads and advertising dollars at work.

“Total digital ad spending in the U.S. will climb 18.7% this year to $107.3 billion. OTT platforms, which have a small but growing share of the market, will continue to play an import role. This year, Roku’s U.S. ad revenues (mostly video but some display formats, as well) will surpass $293 million, up 93% over 2017. And, Hulu’s U.S. ad revenues will increase by more than 13% to reach $1.12 billion,” a Forbes 2018 article revealed.

Traditional TV ads during the Superbowl ($5.1-$5.3 million for a 30-second ad in 2019) and ads during the political season or the Olympics will still draw major advertising dollars. Yet, the reality is the digital advertising trend has been capturing dollars from traditional media for several years now. It started with the decline in newspapers and magazines, and now companies are moving advertising spend from TV to OTT. ”Advertisers are following eyeballs, and simply put, their dollars are better spent online,” Dana Feldman, Forbes.com Senior Contributor.

There is only so much money in a company’s advertising budget. Going where the people are has always been the most effective use of those dollars. Seems like the needle is moving in the OTT direction.