OTT Measurement: 10 Metrics & Benchmarks to Track Success

Last Updated: June 8, 20244.7 min readCategories: Marketing, Over-The-Top (OTT)

OTT measurement is crucial for understanding the effectiveness of your advertising campaigns on OTT advertising platforms. By tracking the right OTT measurement metrics, you can optimize your strategy and achieve better results.

This article will explore the top 10 OTT metrics and benchmarks you need to track for successful OTT audience measurement.

1. Impressions

Impressions refer to the total number of times an ad is displayed to viewers on an OTT platform.

Why It Matters

This metric is important in OTT advertising because it indicates the reach and visibility of an ad campaign, helping advertisers understand how widely their message is being distributed.

How It’s Calculated

Impressions are calculated by counting each instance an ad is served to a viewer, regardless of whether the ad was fully viewed, thereby providing a measure of the total exposure of the ad.

2. Click-Through Rate (CTR)

Click-Through Rate (CTR) is the percentage of viewers who click on an ad after seeing it.

Why It Matters

CTR is important in programmatic advertising because it measures the ad’s ability to engage viewers and drive them to take immediate action, such as visiting a website or making a purchase.

How It’s Calculated

CTR is calculated by dividing the number of clicks the ad receives by the number of impressions and then multiplying the result by 100 to get a percentage.

3. Conversion Rate

Conversion Rate is the percentage of viewers who complete a desired action, such as making a purchase or signing up for a service, after interacting with an ad.

Why It Matters

Conversion Rate is crucial in performance marketing campaigns as it directly measures the effectiveness of an ad campaign in driving meaningful actions that contribute to business goals.

How It’s Calculated

Conversion Rate is calculated by dividing the number of conversions (desired actions completed) by the number of clicks the ad receives, and then multiplying by 100 to get a percentage.

4. Cost Per Mille (CPM)

Cost Per Mille (CPM) is the cost an advertiser pays for one thousand ad impressions.

Why It Matters

OTT CPMs are vital in advertising because they help advertisers understand the cost-effectiveness of their campaigns, allowing them to budget efficiently and compare the relative expense of reaching audiences across different OTT platforms or campaigns.

How It’s Calculated

CPM is calculated by dividing the total cost of the ad campaign by the number of impressions (in thousands).

5. Cost Per Acquisition (CPA)

Cost Per Acquisition (CPA) is the cost incurred to acquire a customer through an ad campaign.

Why It Matters

CPA is critical in an OTT advertising strategy because it measures the efficiency of a campaign in generating conversions relative to the spend, helping advertisers optimize their strategies to lower acquisition costs.

How It’s Calculated

CPA is calculated by dividing the total cost of the ad campaign by the number of conversions (acquisitions).

6. Viewability Rate

Viewability Rate is the percentage of ad impressions that are actually viewable by users.

Why It Matters

Viewability Rate is important in OTT advertising because it measures whether or not ads are seen by the intended audience. High viewability rates indicate better ad placement and higher chances of viewer engagement.

How It’s Calculated

Viewability Rate is calculated by dividing the number of viewable impressions by the total number of impressions and multiplying by 100 to get a percentage.

7. Completion Rate

Completion Rate is the percentage of viewers who watch an ad in its entirety.

Why It Matters

This OTT benchmark is crucial as it indicates the level of engagement and effectiveness of the ad content in maintaining viewer attention until the end.

How It’s Calculated

Completion Rate is calculated by dividing the number of completed views by the total number of ad impressions and multiplying by 100 to get a percentage.

8. Audience Reach

Audience Reach is the total number of unique viewers who have seen an ad at least once during a campaign.

Why It Matters

This OTT metric is important because it measures the breadth of the campaign’s exposure and helps advertisers understand how widely their message is being disseminated.

How It’s Calculated

Audience Reach is calculated by counting the number of unique viewers who have seen the ad, ensuring each viewer is only counted once regardless of how many times they were exposed to the ad.

9. Frequency

Frequency is the average number of times a unique viewer sees an ad during a campaign.

Why It Matters

This metric is vital in OTT measurement because it helps advertisers understand how often their message is being repeated to the same audience, which can impact both brand recall and viewer fatigue.

How It’s Calculated

Frequency is calculated by dividing the total number of impressions by the number of unique viewers, providing an average number of times each viewer is exposed to the ad.

10. Return on Ad Spend (ROAS)

Return on Ad Spend (ROAS) is a metric that measures the revenue generated for every dollar spent on advertising.

Why It Matters

This metric is critical in OTT advertising because it directly indicates the profitability and efficiency of an ad campaign, helping advertisers assess the financial return on their investment.

How It’s Calculated

ROAS is calculated by dividing the total revenue generated from the ad campaign by the total ad spend, providing a ratio that reflects the return for each dollar invested in advertising.

OTT Measurement Metrics: Final Thoughts

Tracking the right OTT benchmarks is essential for optimizing your advertising campaigns and achieving successful outcomes. By understanding and leveraging these key metrics, such as impressions, CTR, conversion rate, CPM, CPA, viewability rate, and others, you can enhance your OTT audience measurement strategies and ensure your ads are both effective and cost-efficient.

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