The ad industry is in the midst of a huge transition. As viewers move away from traditional TV and toward Over-The-Top (OTT) services, advertisers are rushing to follow them. Jim DePalma believes this shift has led to a surge in OTT advertising, but it’s also created some unique challenges. In this blog post, we’ll look at some of the biggest challenges OTT advertisers face today.
Jim DePalma’s Top Challenges Facing OTT Advertising
Measurability and Management
Measurability and management are big issues with OTT advertising. OTT ads are not measured by such metric as clicks; therefore, it becomes difficult to measure engagement and user reaction. However, OTT ads that are supported by programmatic services can be measured.
It is important to note that OTT ad experiences are not the same as those in other channels, such as search or social media. Users streaming content on a TV, tablet or phone are in a lean-back state of mind and may not be receptive to advertising messages in the same way as when they are actively engaged in a task like searching the web.
For this reason, OTT advertising requires careful planning and execution in order to be effective. When done well, however, it can be a powerful tool for reaching an audience that is increasingly shifting its viewing habits from traditional television to digital streaming platforms.
Lack of Rules and Regulations
Another issue with OTT advertising is the absence of rules and regulations controlling inventory quality. As a result, ad fraud can take place. Ad fraudsters can purchase low-quality inventory from OTT platforms and then use bots to generate fake traffic.
Jim DePalma believes that this invalid traffic can then be sold to advertisers who are unaware that the traffic is not real. Invalid traffic detection is a major problem for OTT platforms, as it can lead to advertisers losing confidence in the platform. In order to combat ad fraud, OTT platforms need to put in place better quality control measures.
Difference of Functionality
One issue with OTT advertising is that most OTT platforms do not have the same functionality as a browser. On browsers, you can obtain a lot of information by tracking cookies or pixels. On some OTT platforms, this isn’t possible.
Sometimes, you also cannot implement executable ad units. This lack of functionality can make it difficult to target ads and measure their effectiveness. Jim DePalma believes that this shift of functionality in OTT advertising may not be as effective as other forms of digital advertising.
Jim DePalma’s Concluding Thoughts
While challenges remain, OTT advertising is a powerful way to reach consumers. The potential for ad targeting and personalization is huge, but the industry needs to work on developing better measurement tools and improving overall viewability.
Jim DePalma believes that advertisers should also be prepared for increased competition as more players enter the market. By understanding these challenges and preparing accordingly, advertisers can make the most of this growing opportunity.