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Online TV Services Can Help Cable Restructure Ad Spends

 

On-demand & live Video streaming services have become a viable alternative to Cable TV today as OTT services have established a strong market among the younger audience.

The structure of these OTT video services not only allow users to customize their viewing packages (in bundles) but they also grant advertisers a platform that might just be more advantageous than the conventional television medium in the long run. Overall, the concept that appeals most to consumers is that they only pay for what they’re interesting in watching. With OTT networks presenting different channel bundles, audiences are sure to separate themselves organically. But from a macro perspective, this industry inherently appeals to the millennial audience mainly because the product structure promotes selective viewing and no-commitment as plans usually operate on a month-to-month basis.

The luxury that these services offer is that there are several upgrades in the realm of sports packages, premium channels, and several other bundles. But with the nature of these distinctive offerings from each OTT network, audiences begin to classify themselves by the content they like to watch. Being that this is done digitally, businesses will have access to their viewer demographics filtered through analytic engines and in return, advertisers have access to a great amount of insightful data.

Advertisement wise, users can be reached with customized content depending on their viewing tendencies. The funnel that OTT streaming services creates for advertisers may just allow these types of platforms to instrumentally change the way Cable TV spends on advertising.

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