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October 17, 2017

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How Targeted Advertising Brings Money to OTT TV business

The paradigm for conventional TV viewing has changed and is rapidly shifting to OTT viewing on multiple devices. Because of this, the conventional placement of TV advertising is waning and service providers, and advertisers, are scrambling to find a better way to monetize their services and products and find added-value for their consumers. Advertising is a very important source of revenue stream for the service operators, but they are finding it extremely difficult to attract, and hold, the viewers' attention with OTT viewing. 

 

The solution - TARGET advertising. Delivery over an OTT network makes it possible to provide individual streams of content for each viewer, thus allowing different ads to be delivered to different viewers. Through the use of an integrated data platform, service operators can now magnify engagement with the audience by targeting contextually relevant ad content to the viewer by collecting data on the viewer and then passing this viewer data along to the advertiser. This allows the advertisers to then target particular ads to consumers based on demographic profiles, viewing or purchase patterns, location and relatable content. With the ability to target specific users, it ensures greater efficiency for advertisers to deliver their ads to as many people as they intend to reach. 

 

The service operators also benefit because it allows them to manage multiple ads for the same time slots, meaning they now have an expanded inventory for ads, which will bring in more money for them. The way ads can be inserted into content now comes in many forms -  video insertion for linear content, image-based banner pop-up, or video based pre/mid/post rolls for on-demand content. All of this client side presentation is harmonized with the server side ensuring a smooth transmission of content logistics. Despite all of the technical challenges, this gives advertisers even more opportunities to reach a wider audience. 

 

The advantages to TARGETING ads are many. Consumers will watch ads related to their interests, advertisers can reach a wider audience with targeted consumers, and operators can sell more ad slots than ever. 

Posted by Jill OToole at 1:34 AM