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Is Your Dealership Ready for the Next Revolution?

Updated: Nov 25, 2019

Over-the-top content (OTT) comprises all the media we consume over the internet without the use of things like cable boxes. Increasingly, people are ditching their traditional cable providers to subscribe to online options like Netflix and Hulu. Although price is cited as a factor in people making the switch, convenience has been found to be the primary reason people cut the cord.

1. Parks Associates has found adoption of OTT video subscriptions has increased by 12% since Q3 2014, with the number of available services and consumer awareness both increasing. 

2. Millennials love streaming. The LimelightNetworks found that nearly 80% of millennials subscribe to at least one OTT streaming service like Netflix or Hulu. This is up from roughly 68% in May 2015 and it’s well above the 61% of all the other age groups.

3. Miner & Co. Studio reports that 76% of survey respondents believe that there are better series available now than before streaming services existed. If they had to choose, viewers say content on streaming platforms is higher quality than programming on cable or broadcast networks.

4. The world record for binge-watching TV was recently broken by Alejandro “AJ” Fragoso, who watched 93 straight hours of television. 

5. According to a Roku survey, 21% of Americans place more value on TV streaming than brushing their teeth. Maybe we’re a little too Down With OTT.

Connected TV, also called Over-the-Top (OTT), refers to Internet-connected TV streaming content on the biggest screens in the household.  With Connected TV advertising, video ads are delivered alongside premium, professionally produced content on an Internet-connected TV, providing viewers with an experience similar to watching a traditional TV commercial.

Here’s why it matters: Connected TV allows dealers to target, measure and retarget households based on automotive intent data, thereby giving TV commercials even greater impact. Instead of the “shotgun approach” where you spray your advertising to the entire marketplace, consider OTT advertising a "targeted approach," where you are only targeting consumers who have expressed intent to purchase.

OTT or Connected TV is inherently more cost effective and eminently more savvy when it comes to spending your advertising dollars.

Consumers move faster than marketers and are ahead of media spend, making it imperative for dealers to begin delivering advertisements where audience eyeballs are – along with the audience intent. With multiple targeting options and unparalleled precision, Connected TV is a surefire way to reach only the desired households.

Connected TV adoption has been booming recently and isn’t showing any signs of slowing down. Since 2010, 5 million people have dropped their cable subscriptions and 10.8 million more customers will cut the cord over the next five years. By 2020, the Connected TV-household universe will grow to 98 million, or 78% of US households, while over 6 million linear TV households will cut their paid subscriptions. The adoption of cheaper alternatives—like the “skinny bundle” option—is accelerating this trend.

The main reason? Audiences prefer it. Viewing original digital video over linear primetime allows consumers the convenience of watching on their own schedules and not “by appointment.” In three years, people will spend about 25 minutes (-15%) less time watching linear TV and spend 13 minutes (+68%) more time watching content through a Connected TV or OTT Platform. Welcome to the future: There will be an entire generation that has never known a world with cable TV—and most likely never will.

Car Dealerships who aren’t ahead of this trend will be missing out on a huge group of customers if they are only focusing advertising efforts on broadcast TV and neglecting the bigger picture.

Call us today to learn more and schedule your free evaluation. (954) 329-1335.

Feel free to check out the video below!

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