14 May Why programmatic over-the-top (OTT) advertising is becoming the overwhelming choice for healthcare marketers

It’s estimated that more than 340 million Americans will have subscriptions to over-the-top (OTT) streaming services. So it’s no wonder healthcare marketers are including programmatic OTT advertising as part of their media mix.

The rise of OTT in healthcare marketing

Even as local TV and cable spending declines, OTT’s advertising spend is increasing and expected to reach $207B in 2025!

And results have been “over the top.”

What is programmatic OTT advertising

OTT streams content delivered directly to viewers via the internet, bypassing traditional cable or satellite TV connections.

Examples of OTT include Netflix, Hulu, Amazon Prime, Disney+, Peacock, YouTube TV, Tubi, Pluto TV, and Sling TV.

OTT delivers content across numerous devices, including smart TVs, smartphones, and tablets.

Streaming has surpassed linear TV

“Streaming” is an umbrella term for OTT and connected TV (CTV).

As with OTT, CTV viewers also connect to the internet. They pay to stream their favorite movies, shows, and other digital content. Examples of CTV include smart TVs, gaming consoles (PlayStation, Xbox), and streaming devices like Apple TV, Roku, Google Chromecast, and Amazon Fire TV Stick.

It’s estimated that more than 121 million Americans will have CTV devices by 2027.

In contrast, linear TV is traditional, old-school television showing broadcast or cable programs. The audience can still be relatively sizeable for certain “must-see TV” events, but it is generally dwindling.

Here’s a simple way to differentiate between the three. Say you want to watch the TV show Jimmy Kimmel Live. If you use your Apple TV to watch it, that’s CTV. If you watch it over Hulu, that’s OTT. And if you watch it on ABC, that’s linear TV.

As more and more people “cut the cord” from linear TV, CTV and OTT have become the preferred methods of consuming content and will likely dominate the market in the future.

Programmatic automates OTT ad planning, procurement, and placement

Instead of relying on traditional manual negotiations and purchases, digital programmatic advertising uses data-driven algorithms to precisely plan, purchase, and place online ads through a real-time bidding (RTB) process. Each transaction takes a millisecond.

It involves targeting specific audiences by analyzing their viewing behavior, interests, and demographics. It uses artificial intelligence (AI) to optimize ad content, placement, and timing to reach people on their mobile or desktop devices at work, home, and conferences—delivering meaningful content to an engaged audience.

Also, QR codes can be embedded in an ad, which direct people to targeted—and trackable—landing pages.

A variety of OTT ads can communicate your message

OTT advertising uses numerous ad types and formats across connected devices, including:

•  In-video ads accompany video content: before (known as pre-roll ads), during (mid-roll ads), or after (post-roll ads). Also called in-stream video ads.

•  Companion banner ads display next to your in-video ad, often promoting your website or social media sites.

•  Banner ads appear at the top or bottom of the screen as you’re viewing content, but they don’t interrupt the content being watched.

•  Interstitial ads are full-screen ads that display between content segments.

•  Overlay ads pop up at the top or bottom of the screen and are often clickable, taking you to a landing page.

•  Interactive ads allow the viewer to interact by clicking a link, taking a survey, or scanning a QR code.

Programmatic OTT ads make campaigns more precise and personalized

Precision targeting – Traditional linear TV advertising targets broad demographics. Programmatic OTT advertising offers many ways to reach your target audience, such as geolocation, demographic data, and device information. Delivering the right message to the right audience helps boost conversion rates and increases your return on investment (ROI).

Precision retargeting – After viewers see your ad and visit your website or social media site, OTT can track and retarget them via desktop or mobile ads to extend the effectiveness of your ad’s performance.

Personalized messages – Because you know you’re precisely targeting your audiences, you can craft ads that speak meaningfully to their needs. The result: higher click-through rates (CTRs) and conversions. Another benefit: Delivering personalized ads of interest enhances the viewer’s experience.

Cost-effectiveness – Programmatic OTT advertising eliminates wasteful spending on mass media buys and promoting to people who have no interest in your product or service. It also makes the process of ad buying far more streamlined.

Real-time optimization – With digital programmatic advertising, many metrics are available in real time, such as impressions, view rates, completion rates, and conversions. So you can quickly gauge the effectiveness of your campaign and make any changes needed.

Proven advertising ROI and measurable outcomes – Data-driven insights help you validate your campaign and measure its impact. OTT replaces the guesswork of traditional advertising with accountability and precision.

Integration into a multichannel strategy – Include OTT ads in your full-funnel campaigns to create a persuasive, consistent story across multiple channels, keeping your product or service top of mind.

Greater reach – Programmatic OTT allows you to reach audiences across a range of devices, from smart TVs to smartphones to desktop or laptop computers, further expanding your audience.

HIPAA compliance and privacy protection – Working with third-party data DSPs (demand side platforms), you can reliably identify highly specific healthcare patient and provider audiences while maintaining HIPAA compliance.

Control of ad frequency – You can control the frequency of your ads by capping ad views hourly, daily, weekly, or monthly. You can even schedule ads for a particular season––for example, football or allergy! This prevents viewer fatigue and increases the effectiveness of your ads.

Bryant Brown Healthcare excels in performing competitive analyses to help our clients’ brands stand apart. We also can help you articulate your positioning, map your messaging to all constituents, creatively brand your product or service, then write, design, develop, and deploy uniquely effective communication tactics.

Put the power of programmatic OTT advertising to work for your brand

Targeted programmatic OTT advertising is the proven method to ensure your healthcare audience receives personalized ads with relevant messages that drive awareness and sales. With unparalleled efficiency and cost-effectiveness.

Bryant Brown Healthcare specializes in all forms of healthcare marketing, including targeted programmatic advertising, to help brands connect with healthcare professionals and consumers.

Are you curious about the potential benefits of programmatic OTT advertising for your brand? Let’s talk.