Advertisers Are Rearing to Go OTT

Image credit: Tubular Insights

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:

1. 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.
2. 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.

Reference

Weissbrot, Alison (2018). “Magna: OTT Will Reach $2 Billion In 2018.” Ad Exchanger. https://adexchanger.com/agencies/magna-ott-will-reach-2-billion-in-2018/  Accessed 24 Sept. 2018.