Over-the-top (OTT) advertising has revolutionized the digital advertising landscape, providing numerous advantages to both advertisers and consumers. With the rapid growth of video content since 2020 and the transition away from third-party cookies, OTT advertising platforms have become essential for brands, including car dealerships. In this post, we’ll explore the basics of OTT advertising, its benefits, best practices, and future growth in digital advertising.
What is OTT Advertising and Connected TV (CTV)?
OTT stands for “Over-The-Top,” referring to streaming long-form video content via the internet on any device, instead of through traditional cable, broadcast, or satellite TV distribution channels. OTT advertising delivers ads within this video content, offering an opportunity for advertisers to reach new audiences at scale as more viewers shift towards streaming services over traditional cable and broadcast TV.
CTV, or “Connected TV,” is an internet-enabled television capable of streaming OTT content.
Benefits of OTT Advertising for Car Dealerships
- Advanced targeting capabilities: OTT services enable auto advertisers to target consumers across various devices and platforms, providing valuable data for auto marketers to study viewer behavior and target audiences more accurately.
- More engaging ads: Unlike traditional TV advertising, where viewers often change channels or fast forward through commercials, OTT ads seamlessly integrate into the user’s watching experience. Viewers cannot skip these ads but know precisely how long they will last, resulting in a less disruptive and more engaging experience.
- Advanced attribution capabilities: Using pixel-based tracking, OTT ads enable auto advertisers to determine if a viewer saw an ad and took action, providing invaluable data for campaign strategies.
- Access to hard-to-reach consumers: OTT ads allow advertisers to target cord-cutters with more precision, creating more effective connections with consumers than broad, traditional TV ad strategies.
- Unmatched selectivity with OTT platforms: Dealerships can find OTT platforms with first-look rights, circumventing programmatic ad buying restrictions, gaining access to top-quality content, and strategically distributing ads to specific platforms and publishers.
OTT Advertising Statistics
According to Statista, the OTT Video market is projected to reach a revenue of US$316.10 billion in 2023, with an annual growth rate (CAGR 2023-2027) of 10.01%, resulting in a projected market volume of US$462.90 billion by 2027. The largest market segment is OTT Video Advertising, with a market volume of US$205.10 billion in 2023. By 2027, the number of users is expected to reach 4.22 billion, with user penetration increasing from 45.7% in 2023 to 53.0% by 2027. The average revenue per user (ARPU) in the OTT Video market is projected to amount to US$90.14 in 2023.
OTT advertising offers significant benefits for car dealerships, enabling them to create more engaging ads, target specific audiences, and access valuable consumer data. As the industry continues to evolve, car dealerships should embrace the power of OTT advertising to maximize their marketing efforts. The Automotive Advertising Agency is here to help car dealerships navigate and leverage OTT advertising to reach new heights. Contact us today to discover how our expertise in OTT advertising can drive results for your dealership.