Amazon OTT Advertising: Quick and Easy Guide
Article by: Orca Pacific
Video advertising with Amazon OTT is quickly gaining attention in the digital advertising world for its unique capabilities. Supported by Amazon’s first-party data, Amazon OTT can support both brand performance initiatives and broader marketing objectives. But what exactly is Amazon OTT? And is it right for your brand?
We’ve put together this quick and easy guide to help you understand what Amazon OTT is, why you would advertise with it, how to get started, and how to measure success.
What is OTT?
Over-the-top (OTT) is media streamed over the internet independent of conventional cable or satellite network providers. OTT content is typically viewed through websites, mobile apps, game consoles, or internet-connected televisions. Netflix, Hulu, FireTV, Roku, and Playstation Vue are all examples of OTT platforms.
OTT is quickly gaining in popularity with consumers, especially in the younger generations, who are increasingly looking beyond traditional cable for their media consumption. According to Pew Research, over 60% of young adults say the primary way they view television media is through OTT streaming services. And in 2021, the number of OTT video service users in the US is projected to reach 198 million.
What is Amazon OTT Advertising?
OTT advertising is just like it sounds: video advertising shown through OTT. If you have ever seen an advertisement while watching your favorite show on Hulu, you’ve seen an OTT ad.
The advertising method is becoming a strategic play for brands in a world where consumer preferences are shifting towards streaming media. OTT advertising offers brands a way to apply the same quality of targeting found in programmatic display advertising to a television-style advertising format.
Amazon OTT utilizes Amazon’s own demand-side platform (DSP) to programmatically distribute video ads throughout Amazon’s vast media network. That network includes IMDbTV, Prime Video, Fire TV, and Kindle devices, as well as compatible apps across the Amazon ecosystem.
The ads look just like a traditional TV ad. They are full-screen, have sound, and not skippable.
Why Advertise with Amazon OTT?
Amazon OTT has state-of-the-art targeting, scaling, and designation capabilities. It can be utilized by brands and Amazon marketing agencies to display video advertisements tailored specifically to the interests and preferences of individual viewers. It’s also cost-effective and allows for detailed performance measurement.
Let’s dive into each advantage that Amazon OTT offers:
Advanced Audience Targeting
Use Amazon audiences to reach those with potential interest in your products by reaching retargeted, in-market, lifestyle, demographic, or custom segments… all powered by Amazon’s first-party shopper data.
Retargeting reaches customers who viewed your product on Amazon or your brand’s website but did not purchase.
In-market targeting reaches customers who have searched for products on Amazon within your category.
Lifestyle and demographic targeting reaches customers who fall into broad interest groups such as “New HomeOwners”.
Extend Your Reach
Amazon’s OTT advertising enables you to advertise both on Amazon-owned networks and other third-party networks within Amazon’s ecosystem.
Cost-Effective Ad Spending
Amazon Publisher Services (APS) connects directly with OTT applications to exclude intermediaries and their charges. That allows marketers to see exactly what they are paying for. It is also easier to track the success of OTT ads than traditional TV ads.
Amazon OTT advertising provides brands with plenty of streaming events and shows to advertise alongside – with more regulated ad expenditure. OTT allows advertisers to stick to a more calculated budget and expend on a smaller scale than conventional TV advertisements.
With Amazon OTT, brands only spend as much as how your ad performs. Compared to the amount you have to spend on conventional TV ads, you can save a lot as well as get more value from Amazon OTT advertising.
Measuring Success with Amazon OTT
You can measure the success of your Amazon OTT projects using familiarity, consideration, and sales metrics. Some useful metrics include:
- Reach Metrics: You can track your unique reach and its impact on your business. The reach increases your leads, which can then be introduced to your marketing funnel down to real conversation.
- Brand Search Metrics: Amazon’s OTT advertising can show you the impact of your ads on driving customer research for your brand. The higher the number, the more your brand is appearing on search results.
- Brand Lift: Customer perceptions can change with time. And Amazon’s OTT brand lift metric can show you how your audience demographics change. This is particularly helpful for youth-targeted brands, whereby the audience essentially ages and might become uninterested.
- New-to-Brand: This metric shows how your ads are attracting new clients. And getting a high metric means that your video ads are working and your brand is growing.
How to Get Started with Amazon OTT?
You can get access to the Amazon OTT advertising catalog through the Amazon DSP. Marketers can connect directly through Amazon’s DSP or through partners with access to the platform. When creating an Amazon DSP ad, we recommend these steps:
- Set Goals and KPIs: This is a practical element of your execution channel avenues.
- Pinpoint Audience Segments: Tools like Amazon Audience Solutions can help you identify and target your ideal audiences
- Test and Optimize: As with all advertising, it’s important not to “set it and forget it”. Carefully test segments, bids, and creatives to refine your strategy.
Amazon OTT advertising involves increasing brand awareness in formerly unimaginable ways. The growth of online streaming services has returned video advertising into the living room with more power and reach, and Amazon is leading the charge.