U.S. consumers continue to cut the cord and opt for streaming services over traditional TV services. The number of cord cutters is predicted to reach 55.1 million by 2022. Over-the-Top (OTT) advertising offers your dealership a game-changing opportunity to engage streaming consumers.
VIDEO STREAMING IS INCREASING
Consumer entertainment and news consumption habits are changing. Many households are taking advantage of convenient, low-cost options to watch their favorite content. More than ever, consumers are using ad-supported video on-demand (AVOD), which rose to 58% in February 2021 versus February 2020.
- Cord cutters: Households that have switched from traditional TV services like cable to paid and free streaming service platforms.
- Cord stackers: Households that subscribe to traditional TV services like cable plus one or more streaming service platforms.
- Cord-nevers: Households that have never had traditional TV services like cable and have only streamed content.
OTT ADVERTISING IS EFFECTIVE
It can be challenging and costly to reach in-market car shoppers that no longer watch cable or satellite TV. For reaching those shoppers, Over-the-Top advertising can help you gain the competitive edge. eMarketer even finds that Over-the-Top advertising is more effective at driving return on ad spend than traditional TV advertising.
- 36% more effective than traditional TV advertising
- 36% better at managing ad frequency
- 24% better at managing reach
OTT targets high-intent audiences looking to purchase a vehicle, so your valuable marketing dollars are not wasted on viewers unlikely to convert.
ENABLE TARGETING FOR IN-MARKET AUDIENCES
Robust targeting options and behavioral shopper data are available with OTT. This contrasts traditional ad buys that give you broad demographic targeting based on timeslot or programming.
L2TMedia’s Over-the-Top advertising product runs on ad-supported Amazon network, the #1 streaming platform in America now reaching 120M active monthly viewers.
Amazon’s proprietary consumer data from Amazon.com, Amazon Vehicle and Amazon Garage is integrated into L2T’s AutoQuityTM Platform. The shopper data identifies them as active users, their home address, current vehicle, product preferences and what they plan to purchase. The combination results in audiences based on behavioral intent and stages in the purchase journey.
OTT is effective and provides great targeting, but how do you know it’s working?
MEASURE TO ENSURE CAMPAIGN SUCCESS
Enhanced targeting, engaged audiences and increased usage make OTT a great option for your dealership. It is a challenge to precisely measure the return on TV advertising.
You only receive performance assumptions, primarily through Nielsen ratings, viewership reach, audience demographics and gross rating points.
OTT advertising gives you campaign metrics based on actual outcomes. You track the number of unique ad viewers and how many of those viewers then visited your website within 30 days.
You also receive KPI-based metrics like Video Completion Rate, Frequency and Cost Per Completed View.
Benchmarks from actual L2T dealers:
- Video Completion Rate: >95%
- Frequency: 2-4 ad exposures per unique visitor
- Cost Per Completed View: <$0.15
L2T gives you campaign transparency with our 24/7 Performance Dashboard and month-end reports. See how your marketing dollars correlate to actual ad performance. Then make more informed marketing decisions.
CALL FOR YOUR CONSULTATION
Over-the-Top advertising is cost-efficient and fast to launch. Contact L2T’s team of automotive marketing experts now to take your dealership marketing to the next level.
(Sources: eMarketer, Marketing Dive, PCMag.com, SmallBusiness.Chron.com)
You can reach L2T Media or by calling 888.331.9292.