Not All OTT Is Created Equal: 5 Red Flags Every GM Should Avoid
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Not All OTT Is Created Equal: 5 Red Flags Every GM Should Avoid
If you’re a general manager, you live and die by the scoreboard—units out, gross, service capacity, and marketing ROI. Over-the-top (OTT) advertising can help you hit those numbers faster because it delivers video directly through streaming platforms with surgical targeting. Compared to linear TV’s broad reach and blunt instruments, OTT lets you put your message in front of the people who matter—right down to income bands, credit profiles, and in-market signals.
But (and it’s a big one): not all OTT is created equal.
On Marketing Matters, Ric Boccio (President/CEO, New Road Advertising) and host Colin Carrasquillo cut through the noise. Below, we’ve distilled their guidance into a plain-English playbook for dealership leaders—what to do, what to avoid, and how to hold your vendors accountable.
Why OTT belongs in your media mix
Precision beats waste. Only a small slice of shoppers are in-market at any moment. OTT’s “sniper” targeting keeps your dollars focused on that active slice—whether that’s subprime intenders, truck upgraders, or luxury switchers—so you aren’t paying to talk to the whole town.
Local advantage. When tier-one and tier-two messaging misses what matters in your PMA, OTT lets you correct course with creative and offers that match your lot and your market.
Real-time control. Pause, pivot, and reallocate budget by ZIP, audience, or model line without waiting out a broadcast flight.
The 5 red flags that drain dealer ROI
1) “Spray-and-pray” targeting (vs. sniper audiences)
If your vendor can’t show clear in-market segments (active auto shoppers, credit-qualified buyers, prior make/model owners, service defectors) and the exclusions they’re using, you’re flying blind.
Fix it:
Require audience definitions, data sources, and segment sizes.
Cap frequency. A high-frequency, small-reach plan usually means you’re pelting the same people instead of widening the net to qualified prospects.
Track site visit lift among exposed households to confirm you’re reaching buyers, not just viewers.
2) The wrong device mix (too much small screen)
Boccio recommends that 65–70% of impressions land on big-screen TVs. Why? A :15 or :30 on a 75-inch screen earns more attention and action (type-in, QR scan, site visit) than a skippable phone ad.
Fix it:
Set a CTV floor of 65–70% of impressions.
Keep mobile/tablet as assistive inventory (think retargeting and incremental reach), not the bulk of your buy.
Measure Video Completion Rate (VCR) separately for CTV vs. mobile so you can spot quality slippage.
3) Bundling non-OTT products to “lower CPM”
Watch for packages that sneak in YouTube pre-roll, display banners, or social video and still call it “OTT.” It makes CPMs look great on paper while diluting the thing you actually wanted: premium, non-skippable TV streaming.
Fix it:
Ask for a pure OTT line item and price.
If you want YouTube or display, buy them separately with their own KPIs (CPV, CTR, view-through), not as OTT window dressing.
4) Low-quality or limited network access
Not all streaming inventory performs the same. Over-reliance on lower-tier channels (or a narrow, “owned network” bundle) will strangle reach and frequency with the right households.
Fix it:
Buy through the open exchange or a partner with wide network access.
Request a network quality mix (top-tier, mid-tier, long tail) and rotate creative across dayparts and publishers to avoid fatigue.
Monitor unique reach and frequency at the household level; if reach stalls while frequency spikes, your mix is too limited.
5) “Owned-network bias”
Any provider that forces your dollars into their house inventory first is optimizing for their fill rate, not your sales rate. Your coverage should follow the shopper—wherever, however, and whenever they stream—not your vendor’s network list.
Fix it:
Demand network-agnostic buying and transparent reporting down to the publisher/app level.
Prioritize audience delivery (the right person in your backyard) over a fixed list of shows or apps.
What good OTT looks like (and how to buy it like a pro)
Think of it as Civic vs. Lamborghini: both can get you from A to B, but only one was engineered for performance. Here’s your GM-level checklist:
Targeting & coverage
In-market auto intenders with recency (e.g., browsing and credit signals in last 30–60 days).
Layered qualifiers: income/credit bands, model interest, service due flags.
Exclusions: recent purchasers, employees, out-of-PMA ZIPs.
Device strategy
CTV share: 65–70%
Mobile/tablet/desktop: 30–35% for incremental reach and retargeting
Creative & cadence
:15s for frequency, :30s for storytelling; maintain 2–3 variations in market to fight fatigue.
Quarterly refresh of openings/offers; weekly dealer-level price/availability checks.
KPIs that matter
Unique household reach at a capped frequency (3–5x)
VCR (target 90%+ on CTV)
Exposed-vs-control website lift (GA4/clean room/footfall if available)
Lead and sale matchback (privacy-safe)
10 vendor questions every GM should ask
Which audience data are you using and how fresh is it?
What’s the guaranteed CTV impression share?
Do you bundle any non-OTT formats in this buy? (If yes, itemize separately.)
Which publishers/apps will carry my ads, and how broad is your access?
How do you enforce frequency caps at the household level?
What’s your plan to avoid owned-network bias?
How will you measure site visit lift?
Can I see exposed vs. unexposed performance by audience segment?
How often do you rotate creative and refresh offers?
What make-model (or trim) targeting options exist for conquest vs. loyalty?
Quick Reference: Red Flags vs. Green Lights
| Area | Red Flag | Green Light |
|---|
| Targeting | “Auto intenders” with no source detail | Named data sources, in-market windows, and clear exclusions |
| Devices | Mobile-heavy “because it’s cheaper”. | 65–70% CTV, remainder mobile/tablet/desktop |
| Inventory | House/owned networks first. | Open-exchange access with publisher transparency |
| Packaging | YouTube/display counted as OTT | Pure OTT with separate buys for other channels |
| Reporting | Vanity metrics only (impressions) | Reach, frequency, VCR, site lift, matchback |
Final word for GMs
OTT is a power tool. In the right hands—and with the right plan—it puts your message on the biggest screens in the right living rooms right before shoppers decide. Avoid the five red flags above, insist on clean measurement, and your OTT line will perform like a supercar, not an economy ride.
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