In today's rapidly evolving digital landscape, reaching your target audience requires exploring innovative advertising avenues. One such avenue gaining significant traction is Over-The-Top (OTT) television advertising. But what exactly is it, how does it work, and more importantly, is it a viable option for your small business right here in Northern Michigan, or even if you're a freelancer downstate or a contractor we work with across the country? Let's dive in.

What is OTT Television Advertising?

Think about how you watch television today. Chances are, you're not just relying on traditional cable or satellite. Services like Netflix, Hulu, Amazon Prime Video, Disney+, and Sling TV deliver content directly over the internet – bypassing traditional broadcast infrastructure. This is OTT. OTT advertising refers to the commercials you might see while streaming content on these platforms.

How Does OTT Advertising Work?

OTT platforms sell advertising space within their content. When you, as a viewer in Traverse City or perhaps as a home service company owner we assist in another state, stream a show or movie on a supported platform, you might encounter a short video ad.

These ads are served dynamically, meaning different viewers might see different ads based on various targeting parameters.

Pricing Models for OTT Advertising

Unlike traditional TV advertising, which can be quite expensive and often based on broad reach, OTT advertising offers more flexible pricing models. Common models include:

• CPM (Cost Per Mille or Cost Per Thousand Impressions): You pay a set fee for every 1,000 times your ad is displayed, regardless of whether it's clicked.
• CPC (Cost Per Click): You pay only when someone clicks on your ad. This model is less common for video ads but can exist in some formats.
• Completion Rate: For video ads, you might pay based on the percentage of viewers who watch your ad to completion.

The cost of OTT advertising can vary depending on the platform, targeting options, and ad format. While it can be more affordable than traditional television, it's essential to define your budget and understand the potential reach within that budget.

Targeting Capabilities of OTT Advertising

This is where OTT advertising becomes particularly interesting for small businesses. It offers a level of granular targeting that traditional TV simply can't match. You can often target audiences based on:

• Demographics: Age, gender, income, education, and more. Imagine targeting homeowners in Petoskey who are likely to need your plumbing services.
• Geography: While you might be based in Northern Michigan, you can target specific zip codes, cities, or even designated market areas (DMAs). OTT can help you reach customers in your immediate vicinity or in other key markets across the nation where we support our clients.
• Interests and Behaviors: Reach users based on the types of content they watch, their purchasing history (sometimes), and their online behavior. This could be invaluable for a freelancer looking for clients with specific interests.
• Device: Target users watching on connected TVs, smartphones, tablets, or computers.
• Lookalike Audiences: Reach new users who share characteristics with your existing customer base.

Is OTT Advertising a Good Fit for a Small Business in a Small Town?

The answer isn't a simple yes or no but rather depends on your specific business goals and target audience.

Potential Benefits:

• Precise Targeting: Even in a smaller town like those in the northern lower peninsula, you can focus your budget on reaching the most relevant potential customers.
• Potentially Lower Costs: Compared to traditional TV, you can often start with a smaller budget and scale as needed.
• Measurable Results: Many OTT platforms offer robust analytics, allowing you to track impressions, completion rates, and potentially even conversions.
• Reaching Cord-Cutters: You can reach a growing segment of the population that no longer subscribes to traditional cable or satellite TV.

Considerations:

• Reach Limitations: While OTT viewership is growing, it might not reach everyone in your local area.
• Ad Fatigue: Just like any form of advertising, viewers can experience ad fatigue if they see the same ads too frequently.
• Technical Expertise: Navigating the different platforms and targeting options can be complex. This is where Noacol Creative can step in to guide you.

For a home service company in Gaylord looking to reach new homeowners, or a contractor in Alpena wanting to target specific neighborhoods, OTT advertising with its geographic and demographic targeting capabilities can be a powerful tool. Similarly, for a freelancer seeking clients with particular interests nationwide, OTT can offer access to a targeted audience.

Best Ways to Buy OTT Advertising

There are several ways to buy OTT advertising:

• Directly Through Platforms: Some major streaming services offer direct advertising options. This can provide more control but might require higher minimum spends and more in-depth management.
• Programmatic Advertising Platforms: These platforms allow you to buy ad space across multiple OTT services through automated bidding and targeting. This often offers greater reach and efficiency.
• Managed Service Providers: Companies like Noacol Creative can help you develop and execute your OTT advertising strategy. We can leverage our expertise and partnerships to identify the best platforms and targeting options for your specific business needs and budget, whether you're serving the local Northern Michigan community or clients across the country. We understand the unique challenges and opportunities faced by home service companies, contractors, and freelancers and can tailor an OTT strategy that aligns with your goals.

Conclusion

OTT television advertising presents an exciting opportunity for small businesses, including those right here in Northern Michigan and our valued clients nationwide. Its advanced targeting capabilities and flexible pricing models can make it a valuable addition to your marketing mix. However, it's crucial to carefully consider your target audience, budget, and advertising goals.

If you're a small business owner in the northern lower peninsula or anywhere in the country and are curious about how OTT advertising could help you reach your customers more effectively and affordably, Noacol Creative is here to help. We specialize in guiding businesses like yours through the complexities of the digital landscape and crafting strategies that deliver real results. Contact us today to explore if OTT advertising is the right fit for your business.