what is most likely a disadvantage of ott advertising

2 min read 23-12-2024

what is most likely a disadvantage of ott advertising

OTT (Over-the-Top) advertising offers exciting possibilities for reaching engaged audiences. But like any advertising medium, it has drawbacks. The biggest disadvantage of OTT advertising is arguably the difficulty in accurately measuring its effectiveness. While other channels provide relatively straightforward metrics, OTT's fragmented landscape and evolving technology present unique challenges. Let's delve deeper.

The Measurement Maze: Why OTT Advertising Is Hard to Track

Several factors contribute to the measurement difficulties in OTT advertising:

1. Cross-Platform Complexity

Viewers access OTT content through various devices (smart TVs, streaming sticks, gaming consoles, mobile phones). Tracking viewership and ad engagement across these platforms is complex. Different platforms have their own measurement systems, making a holistic view challenging.

2. Lack of Standardized Metrics

Unlike traditional television, there's no single, universally accepted standard for measuring OTT advertising effectiveness. This makes comparing campaigns across different platforms and providers difficult. Inconsistency in data reporting further complicates analysis.

3. Data Privacy Concerns

Increased focus on user privacy limits data collection capabilities. This can restrict the insights available to advertisers, affecting their ability to assess campaign ROI. Stricter regulations around data usage only intensify this challenge.

4. Viewability and Fraud

Just like online advertising, OTT ads face issues with viewability and ad fraud. Ensuring an ad is actually seen by a human viewer, rather than a bot, remains a significant challenge, impacting accurate measurement. Sophisticated fraud techniques further complicate the accurate assessment of campaign success.

Addressing Measurement Challenges in OTT

Despite these difficulties, several strategies can help improve the measurement of OTT advertising effectiveness:

Utilize multiple measurement providers: Don't rely on a single source. Combine data from several providers to get a more comprehensive picture.
Focus on holistic metrics: Don't just rely on impressions. Consider metrics like engagement, brand lift, and website traffic driven by the campaign.
Leverage attribution modeling: Use sophisticated attribution models to understand how different touchpoints in the customer journey contribute to conversions.
Invest in technology: Explore advanced analytics platforms specifically designed for OTT advertising measurement.
Partner with experienced providers: Work with OTT advertising platforms with proven track records in measurement and reporting.

Beyond Measurement: Other OTT Advertising Disadvantages

While measurement is a key hurdle, other disadvantages deserve consideration:

Higher CPMs (Cost Per Mille): Compared to traditional TV, OTT advertising can be more expensive. The targeted nature and premium content often command higher costs.
Audience Fragmentation: The OTT landscape is diverse, with many smaller platforms. Reaching a large and representative audience requires careful planning and platform selection.
Technical complexity: Setting up and managing OTT campaigns can be technically challenging, requiring specialized expertise.

Conclusion: Overcoming the Measurement Hurdle

The difficulty in measuring OTT advertising effectiveness is a significant challenge. However, by employing advanced technologies, focusing on holistic metrics, and partnering with experienced providers, advertisers can gain valuable insights and optimize their campaigns. While the measurement maze may be complex, the potential rewards of reaching highly engaged audiences on their preferred platforms make the effort worthwhile. As the industry matures, we can expect more robust and standardized measurement solutions to emerge.