Why Should Car Dealers Use OTT?
If you are a not seeing the same reach and frequency from your traditional media budget it may be time for your dealership to consider looking at OTT as a supplement to your current media strategy. OTT stands for “over-the-top,” a term used to define the use of video marketing to users via the internet instead of traditional cable providers.
The growth of streaming!
According to a study from eMarketer, US TV advertising investment only grew about 0.5% in 2017. This year, they expect only a 0.4% growth. By 2021, traditional TV’s share of total media is predicted to drop below 30%. Overall traditional TV services such as Cable and Satellite has lost 33 million “Cord-Cutters” since 2013.
In contrast, on-demand streaming services such as YouTube TV, SlingTV, DirectTV Now, Hulu, FuboTV, and Amazon Prime Video* have continued to push the envelope attracting over 22 million “Cord-Nevers” (those you have never paid for a traditional TV subscription model service in their households) to their subscription models.
Well known streaming apps such as Watch ESPN, Fox Sports Go, HBO Now and others are also helping siphon away subscribers of traditional media.
The cord-cutting movement is accelerating. eMarketer predicts that by 2021, US adults who pay for TV will drop by 10%. That may not sound like much, but with 196 million payers today, that’s almost an additional 20 million people raising the Cord-Cutter number to 53 million.
In the second quarter of this year, Marketing Charts predicted that about 79% of US homes have at least one streaming device, whether that be Roku, Amazon Fire TV Stick, Apple TV, smart TV or gaming console.
How does OTT work?
Over-the-top ads run similar to TV ads. The videos are NOT skippable like some online videos. For on-demand streaming apps, they run before or between content. Live TV streaming apps ads run just like a regular TV ad. Best of all the average cost per completed view for an OTT spot is 4-5 cents.
What Mudd Advertising Offers
We can control the pacing, broadcast times, geo-targeting, and channel selection of each specific ad. All the of these controls allow us to effectively target your audience.
The biggest advantage of having a full-service agency on your side is the amount of expertise under one roof. Our digital and media teams work together to plan the placement of OTT ads, maximizing their impact on customers. You can also use our art and production teams for the creation of the ad itself.
- US TV advertising investment is declining.
- Streaming services and devices are experiencing major growth.
- Millions of Americans are cutting their cords (i.e., leaving their payable TV providers).
- OTT marketing is a way to reach streaming audiences.
Being able to reach the right audience, at the right time, with the right message is the standard goal of all marketers. We must continue to form new strategies to keep up with trends and technology. With OTT we can relay your message and target your audience more effectively than ever before.
*Netflix, HBO Now, and Amazon Prime Video do not currently support third party advertising.