The consumption of videos and television over the internet—known as OTT (over-the-top)—is a growing global trend, especially in Latin America, where 78% of internet-connected households frequently use OTT platforms (such as Netflix, DirecTV Go, Amazon Prime Video, among others). The remaining 22% don’t use them primarily due to lack of time.
This shift in behavior has driven brands to explore OTT advertising, which offers several compelling benefits:
Defined targeting: These platforms allow content owners and advertisers to connect more effectively with their target audience. They can segment by topic, geographic area, and demographic factors—advantages that traditional television doesn’t provide.
Personalized and interactive content: Thanks to segmentation and viewer data, it’s possible to know what the user is watching and on which device. These platforms also provide data and performance reports, allowing brands to analyze and improve the effectiveness of each campaign.
Less intrusive advertising: OTT enables the implementation of less invasive and more relevant ads for viewers—helping strengthen brand image and build better relationships with customers.
Flexible budgets: OTT campaigns can be launched with manageable budgets, offering advertisers the ability to purchase a limited number of impressions for a specific audience.
According to Strategy Analytics, consumer spending and digital video ad revenue from OTT video services will reach $123 billion by 2022. Without a doubt, this is a rapidly growing advertising market that brands must tap into to adapt their messaging to new audience habits—and avoid falling behind the competition. It also presents a major challenge for advertising agencies.
