What Is OTT Video Marketing, and Should Your Contracting Business Be Using It?

Posted by David Chism | Tue, Jul 25, 2023

 What Is OTT Video Marketing, and Should Your Contracting Business Be Using It?

In the past, small busi­ness­es strug­gled to adver­tise on cable TV, espe­cial­ly in big cities where high min­i­mum bud­gets made the cost pro­hib­i­tive. TV was a big busi­ness” game that required deep pockets… 

With the emer­gence of smart TVs and stream­ing apps, how­ev­er, the adver­tis­ing land­scape across your devices has trans­formed. Now even small paint­ing and con­tract­ing busi­ness­es can effec­tive­ly reach their tar­get audi­ence through Over the Top (OTT) and Con­nect­ed TV (CTV)

adver­tis­ing at afford­able rates.

How Does OTT and CTV Video Mar­ket­ing Work?

Let’s back up and talk about smart TVs. 

Rather than rely on cable being piped in, con­nect­ing you with a huge array of chan­nels, smart TVs rely on apps and dig­i­tal stream­ing ser­vices. Net­flix, Ama­zon Prime, Hulu, ESPN, HGTV… The list is basi­cal­ly end­less. This is how peo­ple watch and digest most of their con­tent because they pin­point ser­vices and chan­nels” that they know they enjoy. 

Over the past 5+ years, the enter­tain­ment indus­try has wit­nessed a sig­nif­i­cant shift as home­own­ers increas­ing­ly aban­don tra­di­tion­al cable sub­scrip­tions in favor of var­i­ous stream­ing devices. Smart TVs, gam­ing devices, smart­phones, tablets… Basi­cal­ly these are devices that plug into a TV or screen that allow you to stream apps. CTV (Con­nect­ed TV) is almost the same but is just TV with inter­net access that already has the apps built in and allows stream­ing services. 

If you use these ser­vices, you already know that there are small com­mer­cial breaks” from adver­tis­ers that pop up through­out your show. A minute here, 30 sec­onds there… You can pay to adver­tise and stream a com­mer­cial on these plat­forms, and it’s much more cost-effec­tive than run­ning a tra­di­tion­al tele­vi­sion spot.

Is OTT and CTV Adver­tis­ing Affordable?

In short, yes! 

His­tor­i­cal­ly, adver­tis­ing rates have been based on impres­sions: the num­ber of peo­ple who see an ad. TV sta­tions deter­mine their rates based on impres­sions per spot (high pro­file events or time slots are more expen­sive than less pop­u­lar slots). While impres­sions are not an exact sci­ence, they pro­vide a fair­ly pre­cise mea­sure. For exam­ple, a 30-sec­ond com­mer­cial in a par­tic­u­lar mar­ket might cost $600 but be seen by 20,000 peo­ple. As a help­ful ref­er­ence point, the aver­age cost per impres­sion for OTT adver­tis­ing can range from $0.02 to $0.05 per house­hold per commercial.

How­ev­er, not every­one in that audi­ence is a poten­tial cus­tomer for, say, a paint­ing busi­ness. Some might live out­side the ser­vice area or lack the means to afford pro­fes­sion­al paint­ing ser­vices, right? 

This is where OTT adver­tis­ing excels: it offers a one-to-one adver­tis­ing plat­form, allow­ing busi­ness­es to tar­get spe­cif­ic house­holds or indi­vid­u­als based on demo­graph­ics such as age, income lev­el, home­own­er­ship, and zip code. 

Max­i­miz­ing Your OTT/CTV Campaign

Sup­pose you have a bud­get of $1,000 for a one-month OTT/CTV cam­paign. With this bud­get, you can tai­lor your ad to reach your ide­al cus­tomers approx­i­mate­ly 6 – 15 times per month, with costs rang­ing from $0.18 to $0.50 per house­hold. Plus, you can lever­age OTT ad soft­ware to strate­gi­cal­ly place your ads across over 500+ chan­nels and apps, tar­get­ing spe­cif­ic user habits. 

This means your ad could be seen on chan­nels like the His­to­ry Chan­nel, HGTV, the Food Net­work, or CNN, allow­ing you to engage with a vari­ety of poten­tial customers.

Build­ing Your Brand Message

For paint­ing con­trac­tors and home improve­ment firms, OTT adver­tis­ing presents an oppor­tu­ni­ty to effec­tive­ly con­vey your brand mes­sage to your tar­get audi­ence. We rec­om­mend craft­ing a mem­o­rable call to action or tagline that res­onates with view­ers, just as Lib­er­ty Mutu­al has done with their catchy jin­gle: Lib­er­ty Lib­er­ty Lib­er­ty. Lib­er­ty!” Such mem­o­rable ads can help build brand recog­ni­tion and influ­ence con­sumer behavior.

What’s Your Takeaway?

OTT and CTV adver­tis­ing have rev­o­lu­tion­ized the way small busi­ness­es, includ­ing paint­ing con­trac­tors, can reach their tar­get audi­ence. By lever­ag­ing the pow­er of stream­ing apps and smart TVs, busi­ness­es can deliv­er their mes­sage direct­ly to inter­est­ed house­holds, opti­miz­ing their adver­tis­ing bud­get and build­ing brand aware­ness. We’re big fans and excit­ed about the potential!

If you have any fur­ther ques­tions about OTT and CTV adver­tis­ing and how it can ben­e­fit your busi­ness, feel free to reach out to us for more information.

About David Chism

David Chism started his business out of a passion for helping small contracting businesses grow, be more profitable and become better known to their target clients. One lifelong hobby of David is using techie gadgets. So this blog is a place where he writes about technology, marketing ideas, just for fun (humor), personal thoughts on small business and more.


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