In the ever-evolving landscape of media consumption, the dominance of traditional television is being challenged by the rise of streaming services.
As viewers increasingly shift their attention to platforms like Netflix, Hulu, and Amazon Prime, advertisers and marketers must adapt to this new reality.
One of the most crucial aspects of this adaptation is understanding and knowing how to use OTT attribution.
The shift from traditional TV to streaming services
The traditional way of watching television involved tuning in to scheduled shows on cable or satellite. Advertisers could buy commercial slots during popular programs and hope to reach their target audience. However, with the advent of streaming services, viewers now have the freedom to consume content whenever and wherever they want.
Today, only around half of US households have cable TV. That’s low compared to the 83% who subscribe to a streaming service like Netflix or Prime Video.
This shift has disrupted the traditional advertising model and created new challenges for marketers. On streaming platforms, ads can be skipped (or subscribers can purchase an ad-free version). This means traditional metrics, such as reach and frequency, may not accurately represent an ad campaign’s effectiveness. Not that they did to begin with, besides demand gen.
What do streaming services mean for advertisers?
As streaming services continue to gain popularity, the landscape of television advertising is undergoing a remarkable transformation. For advertisers, this shift presents both opportunities and challenges.
- On one hand, streaming services offer a more targeted approach to advertising. With the ability to collect data on viewers’ preferences and behaviors, marketers can deliver personalized ads that are more likely to resonate with their target audience. This level of customization allows for greater precision in reaching potential customers.
- On the other, the rise of ad-free subscription options and the ability to skip ads pose challenges for advertisers. Traditional advertising methods, such as interrupting a show with commercial breaks, may no longer be as effective. Marketers need to find new ways to engage viewers and capture their attention in a crowded streaming landscape.
Another challenge for marketers is measuring the success of their ad campaigns on streaming platforms. Unlike traditional television, where reach and frequency are commonly used metrics, streaming services provide more detailed data on viewer engagement. Marketers can track metrics such as completion rates, click-through rates, and even audience sentiment to evaluate the effectiveness of their ads.
Furthermore, the shift to streaming services has also given rise to new forms of content creation. With the ability to produce original series and movies, streaming platforms have become major players in the entertainment industry. This has opened up opportunities for advertisers to collaborate with streaming services and create branded content that seamlessly integrates with the platform’s original programming.
Understanding the benefits of OTT attribution
OTT attribution tracks and measures the impact of ad campaigns on OTT streaming platforms. With this streaming-platform-enabled ad strategy, marketers can use the program’s software to gain valuable insights and make data-driven decisions for their future campaigns.
Key benefits of this include:
- The ability to track and measure ad viewability. Unlike traditional TV, where it is difficult to determine if an ad was actually seen, OTT platforms can provide precise data on whether an ad was viewed in full or partially skipped. This information allows advertisers to optimize their campaigns and allocate their budgets more effectively.
- Valuable insights into audience engagement. With access to data such as completion rates, click-through rates, and interaction rates, advertisers can understand how viewers are responding to their ads. This information can help in refining targeting and creative strategies to create more engaging experiences for the audience.
- The ability to attribute conversions to specific ads. With OTT attribution, marketers can track whether viewers who saw their ad on a streaming platform took any action, such as visiting their website or making a purchase. This allows for a more accurate measurement of ROI and helps in determining the effectiveness of an ad.
Crafting the perfect OTT attribution model for your business
When it comes to OTT attribution, there is no one-size-fits-all approach. Each business has unique goals, target markets, and advertising budgets. Therefore, it is essential to craft an attribution model that aligns with your specific objectives.
Incremental lift measurement
One common approach to OTT attribution is the use of incremental lift measurement. This involves comparing the performance of an ad campaign with and without exposure to determine the incremental lift in key metrics such as sales or brand awareness. By isolating the ad campaign’s impact, marketers can accurately assess its effectiveness.
Single-touch attribution
Single-touch attribution assigns credit for a conversion to the most recent touchpoint, which in this case would be the viewer’s exposure to an ad on a streaming platform. This model is simple and easy to implement but may not provide a complete picture of how all touchpoints contributed to a conversion. It’s best for basic products and demand gen campaigns.
Multi-touch attribution
Another effective attribution model is the use of multi-touch attribution. This approach assigns credit to multiple touchpoints along the customer journey, recognizing that a conversion or purchase is often the result of multiple interactions with the brand. Marketers gain a full understanding of ad impact on consumer behavior by considering all touchpoints.
There are a few types of multi-touch attribution:
- Linear attribution distributes equal credit to all touchpoints throughout the customer journey.
- Time decay attribution allocates more credit to touchpoints that are closer to the conversion event, acknowledging their potentially higher influence on the decision.
- Algorithmic attribution leverages data and machine learning algorithms to determine credit allocation based on the impact of each touchpoint and the likelihood of conversion.
These are better suited for complex products, longer customer journeys, and companies running multiple types of marketing. For example, a B2B SaaS company may benefit from multi-touch attribution to understand the impact of various marketing efforts on its sales pipeline.
Final thoughts
As streaming services reshape the media landscape, mastering OTT attribution is crucial for marketers who want to get the most out of their ad budgets. By developing a comprehensive understanding of OTT advertising, businesses can create attribution models that show them exactly where their customers are coming from. With the right strategies and tools, advertisers can thrive in the streaming age and meaningfully engage their target audience.
