Over the Top Video is the Name of the Game for Advertisers
Right now, consumers
have a massive appetite for over the top advertising, and advertisers
must follow their audience. In fact, "OTT ad spend
will grow 40% to reach $2 billion this year" [1], according
to the just released Magna US Ad Spend Forecast Fall 2018.
Further, addressable television campaigns will reach $800 million in
2018 [1].
Surf's Up For OTT
Investment
The OTT investment surge is down to the popularity
of set-top boxes and smart televisions. - In fact, Magna, the media
brands' resource which utilises its insights, forecasts and
strategic relationships, to provide businesses with a competitive
marketplace edge, predicts that this year alone: "84 million
homes will be reachable by non-traditional TV ad campaigns"
[1]. Further, Magna's EVP of global market intelligence, Vincent
Letang, who authored the report, stated that: “people are
still watching on an old-fashioned TV set, but not necessarily
through cable or satellite” [1].
OTT - the Perfect
Vehicle For Targeted TV Campaigns
When it comes to
running bigger scale targeted TV campaigns, the current consumer
drive towards over-the-top, presents advertisers with far greater and
more interesting possibilities. Moreover, it is an advertiser's,
dream come true, as it generates more banner ads on the
connected TV menu, as well as other types of inventory
[1].
Advertisers Need to Reach a Broader OTT Audience
As it stands, ad
spending on OTT, pales when compared to America's $63 billion
national linear television market. Further, regardless of improved
measurement and targeting: "there’s too much fragmentation and
not yet enough scale for advertisers to reach a broad audience on
OTT" [1]. As Letang notes: "It’s complex at the
moment, but it’s always like that in a nascent format. We have no
doubt that over time, new metrics and tools will make it easier”
[1]. So what is the state of play in other regions, such as
Indonesia, the main player in South East Asia?
Getting An Insight From
OONA Global TV's Strategy
OONA
OTT TV's business model behind the application as a Virtual TV
Operator, is currently taking Indonesia by storm after its successful
partnership with Telkom Indonesia. - It is currently set up to
provide its free cutting-edge ad-supported and premium option, mobile
live and on-demand interactive entertainment service to 185 million
Indonesians, and is well on course for expansion into other parts of
Asia, Africa, South America, the Middle East, the US and Europe.
The founder and CEO of OONA,
leading digital strategist, Christophe Hochart, has a clear
understanding of the challenges and what needs to be done to drive
OTT, so it becomes bigger, better, and more successful. Being
mindful of the fact that time-shifted audiences and progressively
divided viewers, present advertisers with huge challenges to connect
with the right consumers, Hochart devised a unique method to collect
far richer data than that obtained by conventional methods.
Empowering Advertisers
& Content Holders the OONA Way
The OONA data
collection strategy empowers advertisers so they can present
different/personalised adverts to different audience segments when
the viewers are looking at the same programming. Hochart offers this
holy grail solution of showing highly targeted personalised ads by
drawing deep and up-to-date data from a combination of three sources:
1. OONA's unique patented genie in the app, who regularly chats with
users. 2. Programmatic advertising. And 3. Standard data collection
methods.
The Winning Way to
Monitization
The broadcaster, TV
channels and content holders which partner with OONA, are able to
monetize their content assets and live feed via a new format of
programmatic advertising which does not affect user TV viewing time
and experience. They can also have a direct relationship with their
audience via OONA's multiple functions, enjoy 100% control, and
receive 100% audience data in real time (views, engagement, time of
viewing, preferences, and so on).
Taking a Cutting-Edge
AI Approach
OONA creates a deep
personal one-to-one experience between the user and the unique AI genie in the app, Siskabot, in order to provide important data
which is necessary for successful ad targeting. It also enables
consumers to engage with the ads that interest them, so they can save
time, get a good deal and save money, not to mention rewards in the form of
tcoins.
tcoins
tcoins
is an exciting virtual currency for loyal OONA Indonesia viewers. The
latter receive these rewards just for watching and sharing content
and ads, and connecting with Siskabot, and watching and sharing
programs and ad. These tcoins can be redeemed for branded good,
meals, fun days out, holistic health treatments, all kinds of
discounts, and telcom products.
Siskabot appears in
person when the app is downloaded, and has regular conversations with
each user to:
Find out the exact
type of entertainment content they love, such as series, films,
action, comedy, fashion, celebrity news, cartoons, cookery, combat, live sports, motors and
bikes, educational programs, documentaries, news, etc.
To discover what
kind of branded products they would chose, and the cool video and
other type of ads they would like to see.
As OONA viewers are
rewarded with tcoins for interacting with Siskabot, this means that a
note of everything they want in terms of branded products and services, as well as the content they view, is kept up to date. Further, everyone who uses the OONA
platform is safe in the knowledge that OONA operates with complete
transparency, and all users' data is kept strictly confidential. So
the synergy of programmatic and standard data gathering with the deep
data provided OONA's Siskabot, is a winning combination.
Thumbs Down on National
Linear TV Ad Spend
In the US, national
linear television advertising spend will only escalate by a miserly
1% in 2018 - a disastrous figure considering the continued loyalty
from sectors such as consumer packaged goods (CPGs), auto, and big
pharma. - Although this does not including the effect of cyclical
content such as mid-term elections and the Winter Olympics [1].
Magna's SVP, Letang, does however,
note that regardless of ratings eroding by 10-12%, television still
continues to demand high prices: "National TV is still the way
for brands to reach large portions of the population in a short time,
to build a brand and launch a new product, the efficiency of TV for
that marketing is proven and measurable” [1]. But will all that
change?
Digital
Rules
Cementing its power over conventional formats, for the
first time in 2018: "digital will represent 51% of all ad spend
and surpass the $100 billion mark" [1]. Moreover, Magna
anticipates that this year, spend on digital ads will shoot up
by a healthy 16% to $106 billion [1].
Mobile is King
"By 2023, Magna
predicts mobile will make up 80% of digital ad spend"
With regard to the
digital sphere's mobile ad spend - this will escalate by a
massive 30% to get to $70 billion, thereby surpassing linear TV.
New Marketing
Opportunities Delivered By the Digital Revolution
Letang notes that the
growth of digital is not just due to the decline of linear media
- as direct marketing budgets also play a role. Digital is after all,
generating innovative unique marketing opportunities: "[Digital
ads] don’t just substitute themselves for advertising mechanisms,”
he said, “they create new demand” [1].
Summary
In summary, traditional
television advertising is clearly battling against mega competition
from the OTT digital entertainment revolution. Consumers
now expect to be able to view content anytime, anywhere - not just at
home, and this is where leading OTT TV entertainment platforms such
as OONA come in. Further, as Magna predicts, in just 5 short years,
"mobile will make up 80% of digital ad spend" [1]. -
Time will tell, but the likelihood is that this figure can only go
up.
