Since OTT advertisements are done through platforms online, brands and content creators get a chance to target a more specific audience. They can tailor it to people who would likely purchase their product instead of a larger audience.

Cost Per View (CPV): CPV guarantees advertisers are only paying for impressions that meet the current standard of viewability: at least 50% of an ad’s pixels on screen for at least two seconds. For optimal benefits, viewability standards need to be redefined.

Audibility and Viewability: One step beyond CPV, considering an ad must be viewable and heard.

Cost Per Completed View (CPCV): Measures how many people watch an ad. This is more challenging for publishers but does give advertisers a high level of accountability, transparency, and performance they seek.

Percent Complete: Would charge based on how much of an ad was watched. If a viewer watches the whole ad, you will pay a higher rate. Whereas you’d pay a proportionately lower rate for a smaller portion of a video watched.

Currently, CPCV is the front-runner for replacing the industry-standard CPM pricing system. Knowing a viewer has viewed your whole video is a better metric for measuring genuine engagement and understanding an audience’s preferences and interests.

If you’re finding you have a high CPCV, then something is off with your video strategy. Perhaps your video isn’t performing well due to the type of ad inventory you’ve opted for, maybe viewership is continually dropping off at the 32-second mark. 

The best way to combat high prices is to continually test a variety of formats, video lengths and distribution channels.

As much as we’d love a one size fits all solution, each campaign is unique and requires A/B testing and continued optimization.

Here are some tips for smaller brands looking to dip their toes into this new medium as they branch outside the duopoly of Facebook and Google.

Treat OTT like an extension of social: Unlike linear TV ads with high production costs, OTT ads can be more direct and authentic. These aren’t slick, million-dollar Super Bowl ads—they’re scrappier, relatable, and product-focused. They’re made for short, fast consumption and may even be a little tongue-in-cheek with their content, more like something you’d see on Instagram than NBC.

Reusing ad spots produced for Instagram is a great way to extend those resources. Instead of spending big bucks on production for OTT creative, brands can put that money toward buying more media.

Leverage data, both first and third-part: Thousands of third-party data providers with authentic data can be applied to ads served on connected television devices. The days of cookie-based segments being the end-all-be-all of programmatic targeting are long gone. More providers have converted their taxonomies to be CTV compatible, leveraging IP addresses or Demand Side Platform (DSP) IDs.

From viewership data to purchase and search history data, browser history data to location visitation data—segments using each of these collection points can be leveraged on your OTT campaigns.

Don’t forget about your data—nothing is more potent than first-party data. Your CRM list can be directly targeted for new product launches, directly suppressed for prospecting campaigns, or turned into look-a-like consumers to find high-value prospects via OTT/CTV.

Find a partner who can help activate, measure, optimize, and iterate: Growth and performance brands need OTT partners who can make the most of this medium.

Not every OTT vendor will have an extensive third-party audience segment library. Not every vendor will have access to every premium streaming service.

Not every vendor will be able to connect the dots between an impression on a connected television device and a conversion on a mobile device or laptop.

And if they can connect the dots, not every vendor will be able to act immediately against the insights they’ve unearthed.

For brands looking toward CTV as a performance channel, it is imperative to find a vendor or platform that offers complete transparency into what’s being bought and how, what’s being measured and how, and exactly how that measurement gets put to work.

Find an OTT partner who can put it all together. 

Ben Brenner is vice president, business development and strategy at Digital Remedy. Ben has a background in performance marketing and ad tech startups. He currently leads the Flip team, helping brands grow their impact in the OTT and connected TV spaces.