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How OTT Advertising Can Reach Cord-cutters

Posted by Joe Weir on January 27, 2017 at 10:04 AM

OTT advertising reaches cord cuttersOver-the-top (OTT) advertising is used for the delivery of film and TV content via the internet that's available to all users and doesn't require a subscription to cable service. In recent years, OTT services have seen large growth thanks to the popularity of streaming providers, while traditional cable subscriptions have been on the decline.

This change in consumer behavior has some interesting implications for marketers looking to harness the power of OTT advertising to reach so-called "cord-cutters" who have abandoned the traditional cable model and are increasingly looking to this type of service to get their media content.

OTT increases

According to a report from Magna Global, reported on by Media Post, only about 86 percent of U.S. homes are subscribed to traditional cable services, and this number could fall to as low as 76 percent in the next four years. This is a troubling loss of reach for marketers who are looking at the continuing effects of cord cutting.

However, the exact opposite trend is happening with this content. According to a report from eMarketer, 7 in 10 Americans consume ad-supported OTT video regularly, and that number is expected to grow in the coming years. This represents a huge opportunity for marketers to reach these consumers, and one that they simply can't ignore as the broadcast and cable industries evolve.

Scalability possible

While cable and broadcast advertising have been scalable at a local level for medium or larger-sized businesses, OTT advertising offers marketers looking to make a splash with video content true scalability - ensuring this new platform is accessible to smaller businesses.

What marketers really need to identify is how and where their target audience is consuming content, and then deliver their message there. Increasingly, those people are turning to OTT. This burgeoning ad format holds a lot of promise, and will be key for marketers trying to reach the ever-increasing population of cord-cutters in the US.

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