Predictions for the OTT Landscape in 2020
Over-the-top (OTT) advertising has taken reaching customers and increasing awareness to a new level. OTT ads are often shown on computers, smart TVs, and other devices like smartphones. Brands on Amazon have begun to embrace this advertising option to gain an edge over their competitors. Continue reading for predictions for the OTT landscape and specific knowledge of this advertising option on Amazon.
Smarter Decisions Made Possible Through Data
A primary competitive advantage of Amazon OTT over linear TV is the quality of its data and attribution. Reporting for OTT will continue to develop, and advertisers will continue to have a clearer understanding as to how these ads perform. As a result, OTT will allow them to better optimize and make the most of their campaigns. Because of this, OTT will likely become increasingly valuable to brands that sell on Amazon.
What sets Amazon OTT apart from other options is the wealth of customer data at Amazon’s disposal. This data allows brands to execute the most relevant targeting options and have unique insight into attribution.
Amazon OTT ads can reach customers shopping for products in your category. But, they can also be tied back to specific shopping behaviors. For example, if a shopper has searched for your brand and its products in the past, they can then be targeted through Amazon OTT advertisements.
Audiences will Continue to Grow as More Americans Cancel Cable
According to MediaNova, the number of video on demand subscribers is set to reach 236.6 million by 2023. A major driver of this growth is the number of people moving away from traditional cable. In fact, 33 million people will end their cable contracts this year.
It’s up to brands to make the switch with their consumers. Investing in and implementing OTT is a great way to lean into this change.
OTT Advertising Investment will Increase Significantly
This year, OTT ad spend growing at the fastest rate of any medium. By 2020, OTT investments are expected to generate nearly $5 billion. This growth is also fueled by more competition coming to the market.
CPG and Grocery Brands will Benefit the Most from OTT
OTT advertisements will create new possibilities for grocery and CPG brands. The data available will allow them to connect advertising to in-store sales. As a result, they will better understand which advertisements drive the most foot traffic.
A unique way CPGs can understand the impact of OTT advertising on in-store success is through the use of location data. This is especially important to CPG and grocery brands since physical retail locations still drive most of their sales. Even though almost half of Americans buy groceries online, only 20% of all grocery sales will be made online by 2022.
What Marketplace Strategy Expects for the OTT Landscape
Marketplace Strategy (MPS) has worked with one of the major brands in the housewares industry to use OTT to gain awareness. After seeing better than expected results, these campaigns continue to grow and deliver. We expect more brands of all sizes to take advantage of this method of advertising soon.
The capabilities of Amazon OTT continues to evolve and grow. Eventually, advertisers should be able to retarget viewers of OTT ads. So, our team would be able to target a competitor’s page traffic and show them an OTT ad. Then, our strategists could continue retargeting video views with additional DSP ads. Amazon OTT is bound to become an even more powerful tool in growing category share on the channel.
This blog post shares only a few predictions for brands to prepare for as the OTT landscape matures. We look forward to seeing what transpires and to new learnings. If you could use support from a strategic partner, schedule a free consultation. As always, we’re here to answer any questions.