In today’s digital-first environment, OTT, or over-the-top advertising, is quickly becoming the most efficient way for dealerships to increase brand awareness. On the latest episode of Marketing Matters, host Colin Carrasquillo speaks with Ric Boccio, president and CEO of New Road Advertising, about how dealers can leverage OTT effectively and avoid common pitfalls.
OTT delivers video advertising directly over streaming platforms, bypassing traditional cable or broadcast TV. Unlike linear television, which broadcasts messages broadly with limited targeting, OTT allows dealers to reach particular audiences based on income, credit scores, in-market status, and more. This precision makes OTT an ideal solution for local advertising, especially when tier one and tier two campaigns may be missing the mark.
Precision targeting: Sniper vs. spray-and-pray
One of the key advantages of OTT is its ability to target audiences with pinpoint accuracy. Boccio explains that only about 5% of the market is actively in-market for a vehicle at any given time. OTT allows dealers to focus on that “sniper” audience, which reaches in-market buyers, subprime customers, or higher-income households with precision. Unlike traditional advertising that attempts to reach everyone and hopes for results, OTT ensures marketing dollars are spent efficiently.
"Smart marketers are using OTT, but even smarter ones, right? The brighter, redder, faster Ferraris know how to spot good OTT from bad OTT." – Colin Carrasquillo
Device mix: “Big screens”
Where ads appear matters just as much as who sees them. Boccio recommends that 65-70% of OTT impressions be served on big-screen devices. Watching a commercial on a 75-inch TV keeps consumers engaged and more likely to take immediate action, such as visiting a dealership’s website. Mobile, tablet, and desktop impressions are valuable but should not dominate the buy.
Avoid building non-OTT products
Dealers need to be careful when OTT buys are bundled with non-OTT products like YouTube pre-rolls or display ads. While these formats have their place in a marketing mix, including them in an OTT campaign can artificially lower CPMs while reducing actual engagement. Dealers should ensure OTT buys are pure OTT content to maximize ROI.
Network quality and own network sites
Not all streaming networks are created equal. High-quality, popular networks deliver better reach and frequency, while lower-tier networks or restrictive “owned network” buys can limit exposure. Boccio recommends using the open exchange to avoid these limitations, ensuring ads reach the right audience regardless of platform.
"As long as I’m hitting the right person in my backyard, wherever, however, and whenever they stream…. that's how you maximize reach and frequency while they're in the buying cycle."– Ric Boccio
Five red flags dealers should watch
- Audience targeting Vs saturations: Choose precision targeting over broad campaigns.
- Device mix: Prioritize big-screen impressions.
- Bundling in non-OTT products: Avoid including YouTube or display ads in your OTT buy.
- Network quality: Focus on high-tier networks for better frequency and reach.
- Owns network bias: Avoid limiting buys to networks owned by a single provider.
Boccio likened good OTT buying to choosing between a Honda Civic and a Lamborghini; both get you to point A, but one delivers a premium experience. Savvy marketers understand how to separate high-quality OTT from budget-draining campaigns, which ensures that every dollar spent provides results.
Ultimately, OTT advertising offers dealers a powerful way to engage the right audience at the right time.
