Why You Should Give Local OTT Advertising a Closer Look

Amrita Hemdev
By Amrita Hemdev
May 08, 2019

In our previous OTT (over-the-top) insights report, we showed that the growth of OTT means MORE opportunities — for both advertisers and brands. It provides premium ad opportunities, viewer engagement, and message reinforcement to advertisers and brands, while also providing media companies with new platforms for extending their audience reach.

Advertising on OTT is already becoming an increasingly popular channel among advertisers. Although advertisers running national campaigns were the early adopters of OTT as a marketing channel, the publisher pool is rapidly growing to include more available content, opening up large opportunities for local businesses. This pairing of local content with OTT distribution is part of a growing trend for video and TV publishers. Here are three reasons why advertisers need to give local OTT advertising a closer look.


Reach the right audience.

Today advertisers increasingly recognize the need to personalize and localize campaigns to specific target audiences. While targeting ads at the national level once provided a broader reach, advertisers are now looking for ways to eliminate waste by choosing an efficient way to channel available marketing dollars. Savvy advertisers know that the key to hitting campaign goals is reaching relevant consumers in the cities and locales where they live and play.

OTT advertising helps reach the people who will be most likely to take action on your campaign at the local level by using precise ad-targeting capabilities. For example, a local jewelry store can target ads at the household level to reach and engage local customers who are likely to be interested in purchasing jewelry and can also physically visit the store to make a purchase.


Streamers prefer local ads.

According to ZypMedia’s groundbreaking survey* of more than 2,000 U.S. adults, when it comes to consumers who watch free or ad-supported streaming TV, 62% of consumers who have a preference would rather watch local ads over national ads. That number is slightly more, at 68%, for consumers who watch local streaming services.

Local streamers find OTT ads meaningful and engaging. We found that 53% of local streamers agree that the commercials they see when they watch streaming services are relevant to them.


Local Ads preference


When it comes to advertising, viewers – including hard-to-reach Millennials – prefer to hear from local companies over national brands. Millennials (18-34 years old) who watch free or ad-supported OTT streaming services prefer local ads more than consumers aged 55 or older.


Millennials watch Free and Local Ads


"OTT is quickly growing into a strong platform to reach local audiences in a lean-back experience. Millennials are particularly responsive to local advertising messages, making ad-supported OTT a valuable channel. With the rich targeting capabilities that OTT provides, local advertisers can now tap into this growing audience, many of which are cutting the cord in favor of streaming.”

Aman Sareen, Co-Founder and CEO, ZypMedia


Improve lead quality and conversion rates.

From a marketer’s perspective, the data and audience insights provided by OTT, especially through local ads, makes it a potentially seamless link in an omnichannel connection with consumers across all of their devices.

OTT holds advantages for advertisers, and it leads to higher engagement. ZypMedia’s internal data indicates that the average VCR of OTT ads in Q1’19 was 98%.

OTT local ads stir consumer interactivity and purchase intent that drive business growth. According to the Video Advertising Bureau’s 2018 report:

  • Thirty-four percent of OTT-streaming viewers say their second-screen activity is completely or mostly related to the program or commercials.
  • Twenty-five percent of ad-supported OTT viewers say they buy more products directly from the brand online versus in stores.


Local ads help reach local audiences in your service area, and advanced targeting on OTT increases ad receptivity with the viewer.

Are you leveraging the power of reaching local audiences via local advertising on OTT? We specialize in local digital advertising and we’re innovating to bring local advertisers the best OTT technology.

ZypMedia brings the best local OTT options to advertisers by working closely with SpotX and Telaria, to connect local businesses with local audiences that are consuming more and more OTT content.

Learn more about including local OTT advertising as an element in your overall ad-campaign mix by subscribing to our newsletter.



*Survey Methodology:

This survey was conducted online within the United States by The Harris Poll on behalf of ZypMedia from March 11-13, 2019, polling 2,043 U.S. adults ages 18 and older, among whom 241 are cord-cutters (used to watch cable or satellite but now only watch streaming) and 681 are cord-shavers (watch both cable TV and use subscription or free, ad-supported streaming services). This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.

Picture of Amrita Hemdev

Amrita Hemdev

Amrita is an inbound marketer. She studied marketing and project management at UC Berkeley and proceeded to work in a fast-paced, digital advertising tech startup, with a goal of increasing brand awareness. She is currently the Content Marketing Specialist at ZypMedia. Passionate about digital marketing and having six years of experience in this field, she also started her digital marketing and creative agency, Sociato, based in India.