How I Cut the Cord and Learned to Love OTT

Just how many months — no, years — does it take for a logical, clear-headed, money-conscious, well-informed consumer to overcome inertia, cut the cord in his home television habits, and move to OTT?

OTT

Just how many months — no, years — does it take for a logical, clear-headed, money-conscious, well-informed consumer to overcome inertia, cut the cord in his home television habits, and move to OTT?

I’ll let you know when it happens.

Yes, I’m one of those Americans — a dwindling number, but we’re still a force. Being charged a couple hundred dollars every month with our stripped-down, no add-ons triple-play (phone/TV/Internet) packages, because there’s no cable competition (in my building) and Spectrum knows it. We don’t even have access to Verizon or AT&T, or RCN, either. Such a dilemma.

Thank goodness for Mom and Dad. They don’t pay my bills. But they donated to me their Roku device when they upgraded their own TV sets. They also added me to their Netflix account as a gift, and now my viewing habits — finally — are changing. Scheduled television via cable at home is clearly on the wane. On linear TV via cable, I watch local news and live sports, mostly — and even some of that I can stream.

As stuck as I am in my ways … I’m about to go bold. And do the deed. Snip! (Well, we’ll see.)

In the meantime, advanced television is clearly on the rise.

“Ad spend on over-the-top (OTT) streaming video will increase 20% this year to $2.6 billion, according to a Winterberry Group study of U.S. ad spend data,” reports eMarketer. “Despite OTT’s surge, it’s still small — compared with the $69.2 billion that Winterberry Group estimates U.S. advertisers will spend on linear TV. For some advertisers, measurement challenges prevent them from investing more in OTT.”

A recent Direct Marketing Club of New York program included a panel of experts who parsed some of the challenges. With OTT, you have two worlds colliding — traditional television and traditional digital — and the user (me) has an expectation that online video, if I’m to watch it as programming, had best carry the quality of linear television. I even want my online video advertisements — hey, it’s ad-financed content on many platforms — to carry the quality of a TV ad, rather than a GIF. Still, I’m open to new ad formats here — I’m starting to enjoy 6-second ads, thanks to digital training. And I’m actively searching and browsing, often on a second device concurrently, some of it prompted by content and ads.

We Need Industry Standards …

What metrics matter to whom? Audience reach and eyeballs may coo the traditional TV media buyer (and seller), who simply wants those same or similar metrics digitally. And that may be fine for CMOs who live and breathe “passive” awareness, but addressable television’s real prize is data: user data, dwell time — and demographics — that shed light on a brand’s customers, one device or cross-device, and one view or continued view (start viewing a program on one device, and finish viewing on another) at a time. Here, “active” engagement metrics matter, such as clickthroughs, conversions, and attribution. These data drive the algorithms that target and tailor the advertising.

And remember the Big Data “ouch” when mobile, social, and local users flooded the market? Same goes here: “Data is overabundant, non-standardized, and non-harmonious,” said one panelist. We need to codify, standardize, and become screen-agnostic in our reporting. Certainly, people expect viewing on a TV to be different than viewing on a smartphone. Marketers need to know device use metrics to see how ad delivery may need to differ. Yet the user metrics do need to be agnostic — audience and engagement metrics need to be settled upon for the marketplace to trust, verify, and grow. That’s because in OTT and Advanced Television, “data is the most important ROI.”

I didn’t have to finish my blog at any particular time today — thanks to TV on demand, anywhere. Oh wait a minute, I gotta shut my laptop: the season finale of “RuPaul’s Drag Race” starts in 10 minutes, and I’ve been looking forward to it for two weeks! Inertia, indeed.

Author: Chet Dalzell

Marketing Sustainably: A blog posting questions, opportunities, concerns and observations on sustainability in marketing. Chet Dalzell has 25 years of public relations management and expertise in service to leading brands in consumer, donor, patient and business-to-business markets, and in the field of integrated marketing. He serves on the ANA International ECHO Awards Board of Governors, as an adviser to the Direct Marketing Club of New York, and is senior director, communications and industry relations, with the Digital Advertising Alliance. Chet loves UConn Basketball (men's and women's) and Nebraska Football (that's just men, at this point), too! 

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