CBD is one of the hottest trends in consumer goods. Many leading consumer brands are spinning up CBD infused or hemp based products or even full product lines dedicated to the additive known to relieve pain and anxiety, while even more entrepreneurs are starting entire businesses around CBD products.
Because major digital advertising channels like Facebook, Instagram, Google, Amazon and, most recently, Snapchat still won’t allow these brands to run paid ads, these brands are differentiating themselves with beautiful branding, interactive websites, valuable organic content supported by strong SEO strategies, user-generated social content and earned media.
While effective, these channels are becoming saturated, and brands are missing out on the growth-accelerating power of paid acquisition, leaving a booming industry to wonder - where can you advertise a CBD brand?
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OTT (Streaming TV)
There are 200 million OTT & CTV users
80% of all long form streaming is done on a Television
43% of adults 18 to 34 view digital video via connected TV daily
33% of adults 35-54 view digital video via connected TV daily
12% of adults 55 plus view digital video via connected TV daily
65% of Generation Z & Millennials have 4 plus OTT subscriptions
You can reach any DMA and any zip code
OTT is delivered to smart TVs, Media players, streaming sticks, gaming counsels, phones, tablets and computers
Leveraging OTT as a Valuable Marketing Tool
With over-the-top, or OTT, advertising, local advertisers can effectively compete with the major players in their industry while catering to local communities and their target customers. OTT for local businesses revolves around the placement of ads within the interface and content used for over-the-top devices and platforms. With cable-cord cutting movements taking the world by storm, OTT advertising captures modern audiences who choose to stream rather than maintain pay-TV subscriptions. According to eMarketer research, traditional TV audiences are expected to decline to less than 296 million this year - or nearly 3 million viewers fewer than 2015. As a local retailer or advertiser, you can tap into the power of OTT by focusing a portion of your advertising efforts to this growing marketing channel. With only a small percentage of OTT advertising coming from local sources, as revealed by Adweek, there are ample opportunities for local advertisers to get on-board and achieve great success.
Here are a few ways local companies can leverage OTT advertising to reach their marketing goals.
Reach a Broader Audience
Similar to traditional TV advertisements, OTT ads are typically displayed full-screen and are viewed by a large group rather than a single person - as found in mobile ad environments. This also limits viewers’ ability to minimize or skip ads, as they lack access to proper controls. Also, OTT audiences tend to be much more diverse, and not limited to certain demographics like many other platforms. And with OTT, ads can be targeted at the household level, which can optimize your reach and frequency and allow you to reach a broader audience than ever before.
Take an Integrated Approach
Local retailers can also use OTT advertising to boost their visibility across multiple advertising channels. To create an integrated marketing strategy, you can align your marketing creative and run your ad campaigns across OTT, radio and digital platforms simultaneously. When used together, each channel can boost the effectiveness of the others to create a more cohesive - and effective - marketing campaign. This approach can also help promote and reinforce your brand message to increase awareness, recall and customer action.
Run Targeted Ads
OTT advertising offers many ways to reach your target audience using precise ad targeting capabilities. Unlike TV advertising, OTT can use geolocation, demographic data and device information to reach specific customers. For example, you can target your ads at the household level reach and engage local customers, encouraging them to visit your store and make a purchase. Advanced targeting increases the quality of your leads and helps boost your conversion rates, potentially increasing your marketing return on investment (ROI).
Gain Audience Insights
Over-the-top platforms provide an exceptional range of audience insights through their advanced analytics systems. These systems give local advertisers access to real-time video analytics that indicate how your audience engages with your ads. Metrics you can track include churn, content performance and viewer engagement. When you can better understand your audience preferences and behaviors, you can tailor your ads to bring in more local customers to your retail locations.
Leveraging OTT as a Valuable Tool for Your Marketing Program
OTT for local retailers opens the doors for improved lead quality and conversion rates through precisely targeted ads. To get the most out of your OTT advertising strategy, consider the different ways you can use this channel to achieve and measure your success. When you take the time to create and follow an effective OTT marketing plan, your ads can attract more local customers with minimal effort on your part.
1. How Does OTT Advertising Work?
With this question, you can assess if OTT advertising can support your overarching marketing goals, such as increasing annual revenues and building brand loyalty. With this type of advertising, video ads are delivered through the interfaces used for over-the-top devices of all kinds, including streaming boxes, HDMI sticks, game consoles and smart TV.
These devices allow viewers to watch movies, TV shows and other digital content by streaming the data to their TV, phone or computer. There are also various ways to display the ads, including within the content as commercial spots or as banner ads on the home screen. Each platform runs their ads in different ways, offering a diverse range of OTT marketing opportunities for businesses.
2. How is it Different From TV Advertising?
Since OTT advertising is a relatively new avenue for marketers, this question can help you understand why you may want to change your marketing approach from pay- TV to OTT. In this new era of digital streaming, pay-tv ads miss major consumer groups who are not regularly engaging in cable or local television programming. These people are using OTT devices and streaming services instead to handpick their programming without paying high subscription fees.
Studies show that people using OTT devices for their entertainment needs are open to watching ads in exchange for streaming free content. Compare this receptivity to viewers’ tendency to switch channels during traditional TV ads, and you can start to see the appeal of OTT advertising for marketers.
3. What are the Benefits of OTT Advertising?
This question allows you to explore the value of OTT and determine if it can offer a great return on investment (ROI) for your marketing program. OTT advertising allows you to precisely deliver ads to your target audience using data like geolocation, device information and demographic data. With a growing, engaged audience and advanced targeting capabilities, OTT can lead to improved engagement and results for your business. And combining it with radio - another high reach channel with exceptional targeting abilities - can boost your reach and frequency to help your business grow and achieve marketing success.