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Home / Amazon / Amazon OTT Advertising: How to Effectively Reach Your Target Audience

Amazon OTT Advertising: How to Effectively Reach Your Target Audience

March 31, 2022 By Ignite Marketing Team


It’s no secret- traditional cable is out and streaming services are in. In fact, about 80% of Americans have at least one streaming service subscription.

You’ve probably watched a show, seen a documentary, or streamed your favorite movie on an app such as Netflix or Amazon Prime. And chances are, you’ve encountered Amazon OTT advertising without even knowing it.

As the Director of Marketplace here at Ignite Visibility, I’m here to explain what Amazon OTT ads are and how you can use them to grow your business.

What is Amazon OTT Advertising?

In general, OTT stands for “over the top.” This is a basic way of describing any non-cable streaming option such as Amazon Prime. Amazon OTT advertising offers the ability to bypass traditional television providers. 

These providers control media distribution and commercial advertisements. However, brands are equally interested in capturing that viewership. 

From an Amazon marketing perspective, the rise of OTT is crucial as it provides brands the opportunity for growth and exposure. With these streaming ads, businesses can deliver video content to viewers within streaming services and platforms.

Besides “OTT”, there are a few other terms that you might hear as you pursue the world of non-traditional video ads. These are:

  • “Cord cutters” Individuals or families who choose to cut all existing cable subscriptions. Data shows that there are over 30 million “cord cutter” households in the United States. 
  • “Cord shavers” Households that limit cable TV but may subscribe to a few streaming platforms.
  • “Cord nevers” Those who have never paid for cable TV in their own home. They have instead watched video content through streaming services.

Amazon OTT offers brands and businesses greater opportunities to capitalize on different groups. This is particularly true for those that watch television on streaming services.

Why is Amazon OTT Important?

Amazon OTT advertising is important because it allows brands to reach audiences directly. 

Brands that have created traditional commercials in the past can now bypass certain requirements. This helps brands get to their audiences faster and more effectively. 

Amazon OTT options are also important when it comes to reaching new segments of the market. For example, younger generations are more likely to watch video content with streaming services. To target this demographic, brands should take advantage of options like Amazon OTT. 

Benefits of OTT

As the video and entertainment landscape changes, there are many advantages to using OTT advertising. Some of the benefits include

  • Freedom of movement. – When you develop a strong OTT ads strategy, you can ensure that your video ads are relevant cross-channel. Because there are many popular streaming services, you have mobility when it comes to where you broadcast and when. Contracts with traditional networks are no longer industry standard.
  • Target without pre-scheduled broadcast terms. In the past, schedule limitations have dictated when and how brands advertise to viewers. This means that certain commercials only show up during certain popular programs. Others fill slots with low viewer numbers and poor ratings. Streaming is on demand;  there is no right time or predetermined schedule for serving up ads.
  • Beats traditional TV advertising. As you now know, there has been a huge increase in the number of households that have cut the cord on cable television. As a marketer, you don’t want to distribute your dollars and effort into outlets that are fading away. Instead, change it up and stay competitive.
  • Allows brands to showcase products in ads. Customers who watch streaming services may already have some technical know-how. As a result, they’re interested in receiving new product news through the streaming channels they already know and love. Advertisers should consider highlighting products and generating buzz through video ads. 

OTT Ads and Customer Funnel Awareness

Many marketers want to know how an Amazon OTT strategy affects their existing customer funnel. If a business spends advertising dollars on a service, it makes sense to know that the ROI potential is high.

Originally, Amazon OTT ads were an upper-funnel strategy. There weren’t many ways to measure how ads on platforms like Amazon Prime Video were performing. This was a pain point for marketers who needed metrics and good data to justify further ad spend.

Amazon is now looking to add features that make it easier for brands to view OTT ad performance. Marketers can also use third-party services to track notable metrics. These numbers might include conversion rate (CR) and click-through rate (CTR). 

Many OTT ads are set up as non-skippable (meaning that viewers don’t have the option to move past them). With this feature, advertisers can set up metrics that quantify the traffic or conversions received from these efforts.

Metrics & Capabilities

Brands that rely on Amazon OTT advertising for their video marketing must find a way to better track the following:

  • Audience reach
  • Ad frequency
  • Brand lift and exposure
  • “New to brand” customer metrics

Awareness of Amazon metrics clarifies brand growth and performance with Amazon OTT. When you understand video ads, you can answer important questions related to video marketing. These questions include:

  • Should we add more budget for OTT marketing?
  • Should we change up targeting strategies when it comes to audiences?
  • Do we need to incorporate more engaging video elements?
  • Are there any other streaming platforms to consider?

Industry Standards & Best Practices

When you create new Amazon OTT ads, there are a few ways to make sure your messaging hits the mark. Work with a solid video marketing team to create professional, high-quality videos. Then, take the following tips into consideration.

  • Keep it short and to the point. Most OTT ads are brief 30-second messages designed to quickly capture attention. These ads are also non-skippable, so they need to be succinct, and the message should be clear. If you want to include a call to action, make it prominent. 
  • Showcase products in the best light. Since you only have a short window to capture interest, use your most compelling message. When advertising physical products, use enticing selling points. Find the most appealing aspects of design. 
  • Showcase to the right consumers. Keep your OTT ads relatable. Partner with the right streaming services and display ads to the right consumers. To do this, you must be aware of who your target audience is and which demographics are most important. 

Who Should Use Amazon OTT?

By now, you’ve learned about the benefits and definitions associated with Amazon OTT. Now, one important question remains. Which brands and businesses should actually start using OTT advertising? 

Amazon OTT can be an important tool for the following brands, groups, and organizations:

  • Brands that haven’t historically used video ads. OTT offers a flexible and highly engaging way to break into the world of streaming ads. Use OTT to test pilot new video messaging. Then, you can see how it resonates with different audience segments.
  • Brands that have stopped seeing results from classic TV ads. Sometimes, traditional commercial advertisements stop being effective as more households cut the cord. If you’ve seen success with traditional TV ads in the past, add a new spin on it and see where it takes your brand growth. 
  • Brands that don’t have “TV level” budgets. Traditional advertising can still be enticing. More often than not, the biggest corporations are the ones paying to play. If you don’t have the ad budget for an exclusive primetime TV commercial, consider OTT streaming options instead.

What is the Future of Amazon OTT?

Amazon OTT is continuing to explore and grow into new markets. Developing an OTT ad strategy is a great way to start a new campaign with fresh ideas and perspectives.

Brands have an opportunity to target audiences in a new, engaging format. This is always a good thing, particularly for businesses that want to tap into fresh markets or reach new buyers.

To create a foundation for success, brands should test this feature more regularly. Look to see how Amazon adjusts and changes its services to better meet the needs of organizations and advertisers. 

Key Takeaways

Individuals are spending more time watching non-traditional cable TV. To take advantage of such an important trend, you need a strategic plan to make the most of potential opportunities.

Ignite Visibility offers full-scale Amazon marketing services for modern businesses looking to grow. Get ready to take your Amazon marketing from dream to reality.

[Get in Touch]

About Ignite Marketing Team

This blog was produced by the Ignite Visibility expert marketing team. It is the result of insight from our agency service lead, research and input from John Lincoln. Learn more about Ignite Visibility

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