Why OTT Advertising is Vital to a Retailer’s Strategy

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Over-the-top or OTT media refers to video streaming platforms that often act in place of broadcast television for viewers, including internet platforms like Sling TV, Amazon Video, Hulu, Netflix, and Now TV. As more and more consumers use OTT media in addition to (or instead of!) traditional broadcast media, advertisers need to follow their customers to these new platforms. Learn why OTT advertising is vital to a retailer’s strategy.

Fact: the number of households using only over-the-top streaming services or devices has tripled since 2013. (ADWEEK)

Although OTT media continues to be supplementary for the majority of consumers, the number of people completely cutting the cord is on the rise and the amount of time users spend watching OTT media is rapidly growing. That’s why R&A Marketing has been including OTT media as part of the digital advertising strategy for its clients.

See how R&A’s clients are performing with the addition of OTT media buys into their digital marketing strategy:

Client A: West Virginia

Starting October 1, 2018, R&A introduced OTT advertising to the digital marketing plan for West Virginia. No other change was made to the digital advertising mix. Since then, this client has seen year-over-year sales growth for October, November, December, and January.

Client B: Ashley HomeStore

While leveraging national advertisements and brand recognition, R&A also implemented OTT advertising for an Ashley HomeStore franchise. The locally focused efforts resulted in a 5% increase in store traffic for the months of January and February.

Why OTT? Go where your audience is.

When R&A started social media advertising in 2009, it was because they knew that more and more people were spending time on platforms like Facebook. And although OTT television is another digital advertising media, it has the same potential to reach an entire household thanks to devices like the Roku, Apple TV, or Smart TVs. At R&A Marketing, OTT is treated just like another screen or another cable or broadcast media.

Many retailers are hesitant to begin OTT video advertising because they fear that these commercials are skippable. However, OTT ads work much the same way that cable and broadcast television works. Unless a user goes to great lengths to record a show and then watch it with fast forward capabilities (like a Tivo or DVR worked for broadcast television), purchased ads cannot be skipped.

Your customers are not consuming less content, they are just consuming it in different ways. By utilizing pre-roll ads and OTT media buys, retailers can put their ads right in front of their consumers’ eyes. And rather than seeing OTT ads as a way to boost sales for a weekend, R&A treats this media as a brand building tool. With video content produced by R&A WebPlus, our retailers are able to create brand awareness. Then with retargeted display ads, emails, and even print advertising, we can capture customers when they are ready to make a purchase!

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