What is Amazon OTT?

Amazon OTT (over-the-top) is streaming TV, which refers to any type of streaming media content delivered over the Internet. It includes subscription-based streaming services where consumers can access content on-demand without having to go through a traditional satellite or cable provider.  Viewers can watch OTT content on personal devices such as mobile phones, gaming consoles, […]
Written By Tristan Williams
Published on March 22, 2023   |6 minute read

Amazon OTT (over-the-top) is streaming TV, which refers to any type of streaming media content delivered over the Internet. It includes subscription-based streaming services where consumers can access content on-demand without having to go through a traditional satellite or cable provider. 

Viewers can watch OTT content on personal devices such as mobile phones, gaming consoles, and tablets, but the majority of viewing occurs on connected TVs (CTV).

OTT is related to how streaming media content is delivered—over the Internet.

Streaming TV advertising is emerging as a powerful way to reach consumers in an ever-evolving entertainment landscape. People everywhere are spending more time consuming content on-demand than ever before, with 90% of Amazon’s ad-supported viewers watching almost two hours of content daily.

To maximize impact with customers in this new era of entertainment, brands should capitalize on the opportunity to make meaningful connections with their customers through streaming tv ads. Benefits include driving increased brand visibility, customer conversion, and ultimately, revenue growth. 

Reaching the right audience is key when it comes to streaming TV ad placement. Brands can leverage a number of different media ensuring their ads are placed in front of their target market. Examples shared by Amazon include…

  • Free streaming services (ex: Freevee)
  • TV network broadcaster apps (ex: Discovery)
  • Live sports (ex: Thursday Night Football)
  • News App
  • Fire TV

Image Source: Amazon.com

Pros and Cons of OTT for Amazon Sellers

In a highly competitive e-commerce landscape, Amazon OTT offers an advantage for sellers seeking to differentiate themselves and build lasting relationships with their customers…

Increased Brand Exposure:

Amazon OTT has provided sellers with the opportunity to enhance their visibility across an extensive range of devices and streaming services. This not only creates new possibilities for revenue growth but also presents a new platform for delivering tailored marketing messages. 

Seamless Shopping Leads to Increased Conversions:

Amazon OTT enables these entrepreneurs to advertise their products or services through a seamless streaming experience on devices like Fire TV and Prime Video, providing a unique opportunity to stand out from competitors. Sellers gain increased visibility and access to an audience already well-versed in the Amazon ecosystem, leading to higher chances of conversion. 

Advanced Targeting Capabilities and Access to Consumer Data Increase Ad Effectiveness:

The platform’s advanced targeting capabilities ensure that advertisements are shown to relevant viewers, thus increasing ad effectiveness. By leveraging Amazon’s consumer data and insights, sellers gain the ability to create highly targeted and personalized campaigns to attract and engage potential customers. 

Barriers to Entry:

Sellers may face considerable entry barriers due to the high costs associated with creating and maintaining visually appealing, video-based campaigns on the OTT platform. On the other hand, current barriers to entry are limiting competition. As more sellers join the bandwagon, competition within the platform could quickly intensify, possibly diluting the impact of individual campaigns. 

Features of Amazon OTT: Automated Campaigns and Targeted Marketing Messages 

Automated campaigns allow sellers to not only save time and effort but also scale up their marketing campaigns with ease. This functionality analyzes consumer behavior and optimizes marketing strategies accordingly, enabling businesses to target the right audience at the right time. 

Another attribute of Amazon OTT is the targeted marketing messages, which enables sellers to create highly-personalized interactions with potential customers. By utilizing these customized messages, brands can entice audiences with relevant offers and promotions, ultimately driving engagement, conversions, and loyalty. 

Analyzing and Measuring Results of Campaigns on Amazon OTT 

Measuring the results of campaigns on Amazon OTT should involve focusing on the key performance indicators (KPIs) that matter most to your business objectives, such as impressions, click-through rate (CTR), conversion rate, and return on ad spend (ROAS). 

Amazon OTT provides reporting tools and analytics to track your campaign’s performance metrics in real-time, allowing you to make necessary adjustments and refinements to enhance the overall effectiveness of your campaign. 

Additionally, by utilizing Amazon’s audience data and attribution tools, sellers can gain insights into who is engaging with their content and optimize their strategy accordingly.

How Envision Horizons Uses Amazon OTT

An Envision Horizons client in the feminine care category wanted to educate consumers and increase their brand awareness of new-to-brand customers on Amazon.

We took a three-prong, full-funnel approach to spread their message…

  • We utilized OTT video media to broaden reach & capture their audience where they were spending a lot of their time, on streaming TV.
  • DSP was leveraged to serve as a reminder to newly engaged targets and to continue to educate the audience about the benefits of the product line.
  • Sponsored brand and sponsored product ads were used to capture the high intent customer at the moment of decision with brand messaging still fresh in their mind.

“A video script was written and produced that fit into the OTT ad format yet quickly got across the messaging of the brand. The timing of the TV ad was strategically done at the time of the brand’s catalog wide sale in hopes of widening reach. Next, DSP retargeting of the TV ad was implemented to keep frequency high and to bring product detail page views up. Lastly, we increased ad investments to sponsored brand and product ads specifically on branded terms to help capture new to brand customers that were exposed to the brand for the first time through the above efforts.” – Todd Piechowski, Envision Horizons VP of Growth

The Result?

The brand saw over 10 million new impressions for its products, saw an overall brand engagement lift, and saw a spike in new-to-brand customers. The campaign was a major success in terms of hitting key objectives.

Working with Envision Horizons, Approved Amazon Agency Partner

There’s no better time to invest in Amazon Advertising & Retail Media. 

Amazon offers a unique combination of reach, targetability, and data that makes it an attractive option for advertisers. Amazon’s ad products are also well-integrated with its e-commerce business, making it easy for Amazon to track ROI and conversions.

Build your full strategic media plan with experts in the Amazon space. Envision Horizons has helped hundreds of brands grow and succeed on Amazon managing over $150M in Amazon sales annually. In 2020 Business Insider recognized Envision Horizons as one of the Top Amazon Advertising Agencies to work with. In 2022, Amazon named Envision Horizons as a US Amazon Ads Brand Building Finalist. Connect with our team to learn more about you can grow your business with Amazon advertising.

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