Over-the-top (OTT) advertising refers to the delivery of advertisements directly to viewers over the Internet through streaming services or devices. It’s called “over-the-top” because it bypasses traditional cable, broadcast, and satellite television platforms. That’s what enables it to reach viewers via smart TVs, laptops, tablets, and mobile phones.
OTT ads target consumers who stream video content — TV shows, movies, and other forms of entertainment on smart TVs, computers, smartphones, and tablets. They give advertisers the ability to reach a highly specific audience with remarkable precision and personalization.
But there’s a right way and a wrong way to do OTT targeting. And it can make or break your entire campaign.
How does OTT targeting work?
OTT platforms collect data on users’ viewing habits, interests, and demographics. Advertisers can use this information to target their ads to specific audiences based on factors like age, gender, location, interests, and behavior.
The basic process looks like this:
- Data collection. OTT platforms collect data from their users, including demographic information, location, viewing habits, and device usage.
- Audience segmentation. Analyzing this data helps segment the audience into different groups based on characteristics like age, gender, interests, and behavior.
- Ad matching. Advertisers set target audience criteria based on campaign goals. The OTT platform matches ads with viewers who fit the specified segments so that ads reach a relevant audience.
- Ad delivery. When a user from a target segment watches content on the OTT platform, the system delivers matched ads during ad breaks or at specified intervals.
- Engagement tracking. The platform tracks viewer interactions — watching, skipping, or taking follow-up actions like clicking.
- Performance analysis. Advertisers receive reports and analytics on their reach, engagement, and conversion rates. These insights help companies assess targeting effectiveness and make adjustments for future campaigns.
5 OTT targeting tactics that win in 2024:
1. Retarget your audience.
Retargeting (also known as remarketing) serves ads to viewers who have already engaged with your brand; for example, watching a video or clicking on an ad. It’s especially useful when those viewers go through with the initial click but don’t follow through with the conversion action (e.g., making a purchase, signing up for a newsletter, or downloading a resource).
When users from the retargeted audience segment use OTT platforms to stream content, the retargeting ads are delivered to them during ad breaks or at other designated ad slots. Since OTT platforms have rich user data and advanced targeting capabilities, the ads can be precisely delivered to the intended audience.
Pro tip: OTT retargeting is most effective when ads are placed within content, especially during mid-roll breaks (which last 90 to 180 seconds).
Placing a 30-second ad at the start of a commercial break gives viewers a chance to visit your website during the downtime as they wait for their show or movie to resume. Strategically capture the audience’s attention when they’re engaged with the content, increasing the likelihood of them exploring your site while they wait.
2. Combine OTT and digital targeting.
Your audience shouldn’t be confined to one channel; they move across mediums as they go about their day. Consider combining your OTT campaign with other online advertising tactics, like display ads or search engine marketing (SEM).
A cross-channel approach maximizes audience coverage and reinforces your message through multiple touchpoints. That said, keep the messaging consistent across all your distribution channels to avoid confusion and maintain brand credibility.
3. Target the same viewer across devices.
Cross-device targeting is an extension of cross-platform targeting, and it’s especially relevant for businesses with mobile apps. With this tactic, you can reach the same viewer across devices — TV, computer, smartphone — and deliver targeted ads to each device based on their behavior on others.
For example, if a user watches your ad and then visits your website from their smartphone to browse products, you can retarget them with OTT ad content related to the products they viewed on your website.
4. Take advantage of behavioral targeting.
Behavioral targeting is one of the oldest tricks in the book. It uses data on users’ browsing habits, search history, and other online activities to understand their interests and preferences. This information enables advertisers to deliver ads that match user intent and behavior.
When applied to OTT targeting, behavioral targeting helps fine-tune audience segments based on viewing patterns. Advertisers can then use this data to serve relevant ads during streaming sessions, increasing the chances of engagement and conversion.
5. Use geotargeting to reach local audiences.
Geotargeting narrows down the audience based on location, which is especially useful for local businesses and small enterprises with a specific geographic target market. For example, if you’re promoting a retail store in New York City, there’s probably no point serving ads to viewers in Los Angeles.
OTT platforms use geolocation data from devices to determine users’ location and deliver ads to viewers whose IP addresses are within the designated geotargeted area. This feature can be combined with other targeting criteria (such as demographics, interests, or behavior) for a more precise audience reach.
Key takeaways
OTT targeting is a powerful tool for businesses looking to reach their target audiences with personalized and relevant ads. Thanks to OTT platforms’ advanced targeting capabilities, advertisers can segment audiences based on demographics, interests, behavior, and plenty of other factors for more effective ad delivery and increased engagement.
By mastering these five tactics, you can stay ahead of the curve and make the most out of your OTT advertising campaigns in 2024.
