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OTT - Over the Top (Cut the Cord)

DrewAment

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Apr 30, 2009
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Talked to a few venders at NADA - big push for OTT (Over the Top). They are selling it has highly targeted, and targeted to the household (assuming by IP...all of them pitch the "proprietary" technology). Cars.com is even selling it....and it is $$$. HIGH CPM if you do the math.

Anyways, the question I asked all of them was that if you are targeting by household -- and we are a 4-5 person household, with 2-3 of those being teenage girls who could care less about the truck I am looking for, isn't a good %% of the impressions wasted on the non-intended audience?

They all agreed AND almost all of them said "well, it is better than broadcast/regular TV".... ya I get that, but not at the CPM you are asking for!

Am I missing something?
 
Depending on the demographic being targeted, going after affluent households, with a more "worldly" age group, eliminates some of those issues. Going after the family aged people, you do run the risk of impressions going to kids, etc. It is "better" than broadcast, for being better able to target & know that the impression is only being served when devices are on - increasing the chance that someone actually sees it.
 

✨ AI Highlights

Dealers and vendors at NADA were heavily promoting OTT (streaming video) advertising as a highly targeted alternative to traditional broadcast TV, but Drew questions whether household-level targeting wastes impressions on unintended viewers—especially in multi-person households—given the premium CPM costs vendors are charging. While replies acknowledge OTT's advantages over broadcast TV and note that targeting affluent, adult-focused demographics can mitigate waste, the core tension remains unresolved: whether OTT's targeting precision justifies its significantly higher costs compared to traditional advertising.

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