Why Advertisers Must Embrace OTT Services’ Ad-Supported Models in 2023

As the fight for eyeballs intensifies, we are seeing more and more companies diversify their monetization strategies to include ad-supported revenue models that scale their advertising offerings and capabilities. As companies like Disney and Netflix debut ad-supported models, marketers and advertisers can take advantage by integrating themselves into the OTT mix to create campaigns that hook viewers in.

Historically, subscription-based models were leading the way for OTT and streaming companies, but as subscriptions have plateau’d, ad-supported revenue models have gained traction and become more mainstream, enabling a broader reach to those consumers who are unwilling to subscribe to content, but still want to view it.

OTT’s Impact on Advertising Trends

There is an intense competition for ad dollars because many advertisers are chasing those advertising budgets. We are starting to see this competition now, as ad spend and targeting costs increase across the market. As the market evolves, inventory quality is also quickly becoming a hot topic. From a pure supply basis, do providers have enough inventory to reach targeted audiences at scale? The irony of targeting is that as targeting specifications increase, addressable inventory starts to decrease.

Scaling happens in two ways: one is through actual ad sales based on inventory and that inventory being sold directly by you. The other way is through parents and other organizations selling your premium inventory. When this happens, you’re left with remnants that can be sold, thus posing the question: What do I do with remaining inventory? With this comes a deeper discussion of fragmentation of inventory and data, which will impact omnichannel planning and overall scalability for many teams.

Despite these concerns, the need for reaching highly targeted audiences across streaming media still exists and the fight for ad dollars intensifies, creating more prevalence for ad-supported models than ever before. Advertisers are leaning into OTT streaming as a critical part of their digital media mix to extend their marketing reach and increase ROI. As competition for ad space elevates across streaming and OTT channels, we will see companies continue to develop new, unique ad products that will be sought out by advertisers to bolster their omnichannel strategies.

Opportunities for OTT Advertising Success

All streaming media companies have content and audiences, but what is critical is the ability for these brands to come up with new, innovative ways to package the content and reach audiences based on their content consumption preferences. Otherwise, it becomes commoditized. Additionally, top OTT streaming companies are working to elevate their ad models to create non-intrusive and enhanced user experiences while also keeping their ability to scale advertising models and targeting capabilities, thus ensuring success for their advertisers.

Advertisers looking to target niche audiences at scale will be looking to streaming and OTT companies to fulfill their needs. Savvy advertising teams will be pulling ad dollars away from other channels like social, programmatic, and digital display to invest more into streaming media. Plus, ad-supported OTT streaming models are becoming increasingly more mainstream, presenting prime opportunities for advertisers to acquire premiere ad space to garner audience attention and diversify their revenue. As these streaming media platforms enhance their capabilities with AI and automation of their workflows, their targeting and success rates will increase, making OTT the ideal platform to leverage when expanding marketing channel strategies and a standardized platform to leverage within omnichannel marketing.

You may also like...

Subscribe to Our Blog

Subscribe to receive an email when we publish new content!

    Ready To Empower Your Business?

    We can help you future-ready your business with customized, innovative solutions designed to foster sustainable growth.

              Nikhil Badlani Foundation

              The Mission of the Nikhil Badlani Foundation (the “Foundation”) is to enhance the lives of underserved children in West Orange, NJ and neighboring communities through music lessons, scholarships, and traffic safety education for all.

              Since the Foundation was established in 2011, Theorem has consistently been an annual sponsor of and team participant in the STOP for Nikhil 5K Run/3K Walk. This event intends to raise traffic safety awareness and to serve as a way to remembervbgfc ≈ and honor those who have been killed or seriously injured in traffic accidents. We recognize the importance of raising awareness and road safety amongst teenagers and parents alike, especially in the local communities of our Chatham, New Jersey office. Learn more about the Nikhil Badlani Foundation at nikhilbadlanifoundation.org

              Diversity and Inclusion

              Theorem actively aids in the ongoing fight against systemic racism and discrimination, realizing the importance of ongoing discussions surrounding diversity and inclusion.

              By contributing to organizations such as Black Girls Code and the Anti-Racism fund, we aim to be a fundamental supporter of diversity in the workplace and beyond. These organizations specifically speak to Theorem’s role as a leading voice in the technology innovation space and we avidly support their missions. The vision of Black Girls Code is to empower girls of color, ages 7-17 to become innovators in STEM fields and encourages them to be the builders of their own futures. The Anti-Racism Fund serves as a response to the inequities experienced by the African-American community. It provides monetary support to a dynamic portfolio of curated organizations as a way to inject and enable social change.

              Feeding America

              Feeding America is the largest charity working to end hunger in the United States. By partnering with local food banks, food pantries and other community food programs, Feeding America looks to advance change across the country and ensure equitable access to nutritious food.

              As a long-standing contributor and sponsor of Feeding America, we deeply believe in their vision of an America without hunger. The need for and importance of organizations like Feeding America has has become more and more prevalent as communities face more hardships as a result of the pandemic and the current economy. Theorem is dedicated to its continued contributions to Feeding America to do our part to empower and strengthen our communities. Learn more about Feeding America at www.feedingamerica.org

              Grameen America

              Grameen America is dedicated to helping entrepreneurial women who live in poverty build businesses to enable financial stability mobility.

              Since their founding in the United States in 2008, Theorem has supported Grameen America’s mission, which seeks to build upon the legacy of Presidential Medal of Freedom, Congressional Gold Medal and Nobel Peace Prize winner Muhammad Yunus. Through financial contributions and event participation, Theorem has contributed to Grameen America’s cause. As an immigrant entrepreneur himself, our CEO Jay Kulkarni is especially eager to support the organization’s mission of aiding underserved communities. Learn more about Grameen America at www.grameenamerica.org

              Vision Spring

              VisionSpring is making the wonder of clear vision possible for all by helping provide affordable and quality eyeglasses to those in need. For many, lack of access to affordable eyeglasses leads to loss of employment or less educational opportunities.

              VisionSpring partners with organizations who join them in their mission of supporting livelihood initiatives, enhancing potential for all. Learn more about Vision Spring at https://visionspring.org Theorem has consistently partnered with VisionSpring to organize free events, such as eye check-ups, across multiple villages in the Mysuru, India region, impacting over 3,000 rural residents. We stand with VisionSpring in their mission to increase accessibility to quality eyewear and eye care.

              Covenant House

              Covenant House provides housing and supportive services to youth facing homelessness, helping young people transform their lives.

              For more than 5+ years, Theorem has supported Covenant House with corporate sponsorships, leading career-building workshops at their Newark, NJ shelter facility and participation in the organization’s fund raising Sleep Outs. Covenant House utilizes these Sleep Outs to raise funds and help shine a light on the injustice of youth homelessness, inspiring communities to step up and protect the vulnerable. We are proud to support Covenant House’s programs, which are designed to empower young people to overcome and rise above adversity, today and in the future. Learn more about Covenant House at www.covenanthouse.org

              Contract Type

              |

              Location

              Job Title

              Contract Type

              |

              Location

              Job Title

              Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.