Massive opportunity in the OTT streaming space has made it the new turf for global businesses to compete with each. A decade ago, only Netflix used to provide movies through online video streaming and no business could bet big on the technology. However, over the past few years, the times have changed. OTT industry has witnessed exponential growth. The worldwide OTT revenue is poised to surpass the figure of a whopping $150 billion by 2024. That’s almost double from the 2019 figure of around $84 billion.
Apple TV has entered the market with a budget of $6 billion for fresh content with some of the biggest collaborations in Hollywood. Disney has also created ripples by entering the OTT market with its massive library of Pixar, Marvel, and Lucasfilm. It managed to attract over 10 million users just within the 24 hours of its launch due to its family-friendly content library.
On the other hand, Amazon Prime Video is also fighting for the market share with its massive war chest. It has expanded at rapid pace in multiple countries across the globe and is aggr4essively producing regional content for local audiences.
World-Class Content on OTT Platforms
And how these big OTT players are competing? The answer is simple – by creating world-class content for the global audience. Later, Netflix also started producing TV shows but it didn’t get the recognition until House of Cards happened. The political thriller made both critics and viewers realize that OTT players can also produce global content with equal finesse. The string other big shows like The Crown and 13 Reasons Why have put the Netflix on the global map. The popularity of these shows is no less than a Marvel or DC movie.
These OTT players have sparked the third TV revolution where online streaming is giving a hard time to traditional broadcasters. Even cinema hall owners have witnessed a dip in their revenue due to the early availability of the latest movies on OTT platforms. Aside, these internet upstarts are also created binge-worthy content that is winning Oscars and Emmys.
However, with more media barons like Comcast and AT&T launching their own OTT platforms to showcase native content, access to all quality content will become expensive like cable television. These services can’t become affordable in the long run unless and until they take the support of advertising revenue. The same model that the traditional broadcasting industry is leveraging.
Emergence of AVOD
With multiple video on demand (VoD) streaming services entering the market. Price-sensitive consumers will opt-in-out of services to juggle their preferences within the budget. Viewers will make a balanced bouquet of ad-free and ad-supported (AVOD) services like Voot, HotStar, and YouTube for their entertainment. HotStar is also providing live streaming solutions for sporting events.
AVOD services are more affordable and are becoming popular at an exponential rate. As per the IAB study, more than 50 percent of VoD audiences are also watching content on AVOD. And many of the OTT viewers have admitted that they watch ad-supported OTT streaming platform the most as it doesn’t require any financial commitment. To bank on the massive engagement that AVOD platforms are creating; advertisers are lured to these platforms.
AVOD platforms are giving advertisers the opportunity to bank on the impactful brand storytelling power of television. And that can be done on OTT by targeting the audience precisely through demographics and analytics. The interactive nature of these platforms is also increasing the user-engagement for brands.
Brands Are Leveraging Heaps
Brands are leveraging heaps of user data to generate actionable insights they study to create opportunities and new revenue streams. On local over-the-top (OTT) TV, marketers have increased their marketing budget by a massive 127 percent. Advertisers are leveraging geography, demographics, and user preference for precise ad targeting and better RoI. ad views by almost 50 percent and the trend is poised to rise further in the coming months.
With emerging markets constantly upgrading their internet infrastructure coupled with cheaper mobile devices. The trend of OTT consumption will rise exponentially in the upcoming years. This brings a massive opportunity for advertisers to run precise marketing campaigns that is capable of generating more revenue and brand awareness among others. Several big brands including Nike have now completely stopped advertising on traditional marketing mediums. These brands have complete faith in digital marketing solutions to drive their marketing.
Why advertisers are attracted so much towards OTT?
Valuable Audience: OTT viewers are normally new-age users who have probably never subscribed to traditional media for entertainment or information. This generation is also more likely to invest in new brands, products, or services. In a nutshell, the younger audience is more receptive to new ideas and offers.
Data-Driven Marketing: Marketing in newspapers or channel broadcasts was never precise. It was more like a hit and trial. AVOD platforms have brought efficiency in the marketing ecosystem and have drastically cut down the wastage. Brands can now study business-critical information including sex or age demographics, behavior, location, and context among others to get better results from OTT ads.
Optimization: With AVOD ads, you get access to real-time data of your ads. It easily helps you figure out what is working and what should be changed. You can optimize creatives and content in real-time. To gain desired results without having to wait for the campaign to end.
OTT streaming has come as a massive opportunity for both broadcasters and advertisers. Its ability to reach every nook and corner of the world efficiently makes it a more impactful medium. However, the platform has not reached the maturity level yet and you need to be a smart thinker to connect dots throughout apps and platforms. It is a great opportunity for brands that have exhausted their reach on social media presence to leverage OTT platforms to boost engagement.