An Untapped Advertising Opportunity Arises as the OTT Arena Expands

“People spend more time watching OTT content than they do driving a car or talking to friends and family” [1]

As the media landscape continually evolves, streaming wars battle on regardless, and the pile of cut cable cords gets even higher, a lot of people are asking “how many streaming services are we going to need to get the content we want?” - And this begs the questions, how many services can the market actually handle? [2], and where is the untapped advertising opportunity?

Survey

A survey of more than 2000 verified over the top, adult service users, was recently conducted by The Harris Poll and the global ad exchange platform, OpenX. The results show the massive popularity of OTT services [such as OONA TV], and what appears to be a huge untapped OTT advertising opportunity. - Further, when it come to TV ads, this chance can be harnessed by media buyers and advertisers alike, so they are empowered to target their audiences with far more precision – a game plan which leads to much better revenues [1].

As noted in Forbes, the results of the survey confirm that: “more than half of all American adults are consuming OTT content like movies, complete seasons of popular series, original content and programs such as documentaries, concerts and stand-up comedy specials from services like Netflix, Amazon Prime, Hulu and now Apple, either to supplement or completely replace legacy cable and broadcast” [2]. Moreover, a whopping 61% of Americans have a smart TV [1].

Is the Grim Reaper Really Going After the Future of Broadcast Satellite & Cable TV?

Well, the OpenX poll seems to indicate it is. - This is particularly so in the case of Millennials, who are replacing aging Baby Boomers (the original target) [2]. Here are some other findings:

• Millennials who have a sub to at least one OTT service, view over twice as much over the top content as live TV

The most popular content viewers want is films, followed by TV shows (scripted); followed by live news & sports (both of which are believed to be responsible for keeping broadcast & cable going)

• Millennials spend over twice as much time viewing OTT content, when compared to live TV
• Under 40% of Millennial over the top consumers are planning to retain their cable package
• Close to 2/3rds of cord cutters: “are more like 'cord burners'; they say it has noticeably improved their life and there is nothing a cable company could do to lure them back into having a bundle” [2].

OTT Rules

OpenX 's Chief Communications and Brand Officer, Dallas Lawrence, stated that: “We are clearly at a tipping point where OTT is mainstream. These are not passive viewers dipping their toes in. These viewers want lots of content – 2.5 hours per day on average – on multiple services” [2].

But What About Market Saturation?

When it comes to pondering over how much, even the most devoted of streaming enthusiasts will be able to stretch their monthly subs budgets to: according to OpenX's research, the answer is “up to $100 per month for about 15 channels/outlets” [2]. - But even with fierce competition, and the eminent launch of mega production services such as Disney, Comcast/NBC, and ATT/Warner Media, that really does sound like hard work, chopping and changing platforms, not to mention forking out $1,200 per year, with annual increases.

Keeping Life Simple

Consumers who have this kind of outlook, may be more keen on sticking with just one OTT next generation app, such as OONA Free AVOD (ad-based live and video-on-demand) interactive TV, which provides: hundreds of free top local and international channels on the go, or at home via OONA app casting; a cool genie in the app named OONAbot, who personalizes content; and even get rewards viewers in the form of a virtual currency (tcoins), just for watching and sharing the content they love.

Moreover, they can go for an OONA+ premium SVOD (subscription live and video on demand) option, which covers a broad choice of flexible options to suit every pocket book. After all, as Lawrence notes: “Consumers are overwhelmed, they want simplicity. Most of all, they want to make their own skinny bundles, picking and choosing across different services through a single interface” [2]. And that is exactly what OONA TV is striving to offer.

Currently, OONA is providing its unique service to 185 million Indonesians, and is well on the way to delivering the same to billions of people in other parts of Asia, the US, Africa, the Middle East, South America and Europe.

One Interesting Finding

It may come as a surprise to some, that survey respondents stated there are no particular OTT exclusive original programs, which hit their top 10 list. Lawrence recollects: “We asked an open-ended question and discovered that, for all the billions that Amazon, Netflix, Apple and the others are pouring into original programs, the viewers’ favorite shows on OTT are things like Game of Thrones, Walking Dead, Friends and The Office” [2]. Moreover, he points out that, while specialized content is a great way to maintain and capture new subscribers, this factor alone, does not have enough pull to make subscribers loyal to one particular platform [2].

Re-Working TV Advertising

After cable TV, the most likely industry to be disrupted by OpenX's research results, is advertising. As Lawrence notes, in 2018: “brands spent $70 billion advertising to TV audiences, mostly using a media strategy that look more like 1995 than 2018” [2]. - Strong words indeed... But the rub that Lawrence points out here, is that: “only 5% of all ad dollars go to OTT, even though more than 50% of the audience is there” [2].

This strategy not only constricts the scope of advertising power; it also leaves out vast opportunities. The latter is due to the unique way that OTT audiences respond to adverts - especially when they are viewing them on smartphones, and other mobile devices. The research indicates that a massive 40% of all OTT viewers will: “pause a commercial on their phone, search for info on the product, and display intent to purchase. That suggests that OTT advertising could yield tremendous benefits if brands can figure out the right approach with good creative and strong calls to action” [2]. - Now that certainly is exciting news...

The Movers & Shakers

As movers and shakers in the industry, such as leading digital strategist and AI expert, Christophe Hochart, founder and CEO of OONA TV, understand: at the present time, advertisers find the over-the-top market difficult to address. - This is due to the fact that OTT providers disagree on the best way to adapt to this new form of advertising. For example, a number of prominent platforms such as OONA, offer various choices. OONA empowers millions of viewers with its free ad-based service, and its OONA+ premium ad-free options; whereas some platforms are completely closed to showing any adverts, thereby rendering it extremely hard for ad companies to devise a general strategy which is compatible with the overall landscape [2].

The research shown in the survey, finds that:

• 72% of OTT viewers realize there has to be a trade-off between having access to free content, & allowing advertisers to utilize their data - which will enable them to show the users particular ads. Further, the majority of respondents noted that if the ads are relevant, then they are not disturbed when they see them
• 46% of OTT consumers are happy to shell out $10 per month for an ad-free service
• 25% of viewers prefer an ad-based free service
• 29% of customers would like a hybrid model with a lower monthly sub & few ads
• Users are happy to fork out as much as $24 per month for a single service premium package [2].

Lawrence believes these results imply that at the present time - where ever over-the-top providers fit on the advertising subscription fee continuum, it is likely that within the next 1.5 to 2 years, the majority of top platforms will come up with a model [similar to OONA's], which incorporates tiered pricing, with the minimum of one ad-supporting option to meet the needs of all of the above listed customer segments [2].

Great Expectations

Forbes makes the point that one may feel that: “the business model of OTT services, which requires users to sign in to use the services, presents a greater opportunity for ad targeting and personalization” [2]. Lawrence's take is that this direction shows great expectations, and will “dramatically impact the creative process that ads undergo" [2]. He does however, think that: 1. Advertisers must have a more loaded creative inventory, so they can charm individual audiences and sub-segments; and 2. That improved methods of serving the ads are essential. - This includes advertising on platforms which are nearer the digital web landscape than the increasingly bygone broadcast market [2].

OONA OTT – Making Advertising Simple 

Using the flexibility of the latest technology, OONA offers channel and content holders multiple ways to drive substantial revenues from their channels via the OONA platform. This includes: Programmatic Video Advertising, Display Advertising with User Mobile Engagement, Pay Per View, Subscription, and more. OONA's global model adapts to each single market without changing its first-class universal user experience. The TV landscape, media content and economics of a particular country, remain the same, and every OTT solution is framed using a custom designed model which is beneficial to the channel company, the telcom, and the user.  

The 3 Steps For Advertisers

Number 1: Engage Directly with Your Viewers

When advertisers own the relationship with their users, this not only empowers them to build a strong community of fans; it also drives viewership and brand loyalty through targeted tcoins campaigns in order to reward returning viewers – and not anyone else.

Number 2: Know Your Customer

OONA's tracking tools allow advertisers to easily visualize their content performance and their viewers' profile, in order to optimize their presence on the OONA platform, fine tune their pricing, and maximize their revenue. Further, the advertiser's team gets direct access to all the data, in total transparency.

Number 3: Adjust Your Business Model

The OONA platform provides a broad, flexible variety of services and business models, live or on-demand, free or pay. Advertisers decide what content, and which services to offer, and very importantly, they set the pricing [3].

OONA's Innovative Strategy to Stimulate Viewers to Watch Ads

When OONA was first conceived, its founder, Christophe Hochart, looked outside the box for workable strategies within the growing advertising ecosystem. He focused on monitisation technology, and attaining valuable deep data, as well as a way to attract viewers to watch the ads they are interested in. Being an early supporter of AI and machine learning, one of the unique ideas he came up with, was to create a patented helpful personal assistant named OONAbot (the genie in the OONA app), to ensure that viewers can enjoy content personalisation through: accessing their favourite programs and live content, as well as the kind of helpful ads that interest them, and can save them time and money.

"Part of what makes a publisher’s audience so valuable is their audience data" [4]

In order to get the right personalised ad fit for each viewer, OONAbot has regular conversations with users so they enjoy relevant, compelling experiences. She continually finds out more about them and their lifestyle, as well as the products and services they use, and are interested in. The latter is vitally important, as it seamlessly amalgamates relevant ad content into the digital consumers' experience. - After all, there is no point in showing ads that viewers will just cut off.

In addition to this, OONA's leverage of deep data generates contextually connected results for targeted consumers based on their personal interests. - And this allows advertisers to take a higher level of control over their campaigns. It also has to be noted, that all the personal information that OONA collects, is kept strictly confidential. Moreover, at the end of the day: “shifting consumer expectations of ad experiences and personal data usage will drive innovations in ad transactions and delivery” [4].

A Fun Virtual Currency

In order to have success with OONA's ads, Hochart also devised an ingenious system whereby viewers can accrue loyalty rewards in the form of tcoins. - The latter is a virtual currency which rewards viewers just for watching content and personalised ads; sharing the content they love with friends and family; sharing a referral code on social media; and interacting with OONAbot. These tcoins, which are stored in a virtual wallet, can be exchanged for a broad range of branded goods, discounts, fun days out, discounts, free telcom minutes and various telcom products, and entry to exciting bid'n win competitions.

So in practice, Hochart has laid the groundwork for ensuring that the data the OONA platform collects, is an effective asset. He notes that: “While there has been an upsurge in data sources, and the means to collect it; for the purpose of actually utilising it to propel the business, we focus on first-class data management in order to achieve the unity, timeliness, and wholeness of consumer data which will drive accurate results. In addition to this, we continually work on applying new patterns so we can integrate the information, and apply new techniques such as machine learning, in order to achieve optimal results. All the tools we utilise involve privacy-complaint methodologies, therefore, consumers' personal data is always safeguarded, and users can have total confidence in us.”

Matching Viewers Elevated OTT Entertainment Experience

SpotX reports that a recent IAB study indicates that: 73% of Americans (aged 18-plus), who regularly stream OTT video, said they watch ad-based video on demand. To that end, advertisers have to come up with innovative ways to duplicate users' elevating experience with over-the-top content [2]. As do the platforms themselves. OONA Global TV is an excellent case in point.

OONA's Free cutting-edge broadcast quality AVOD service personalises ads for each and every user. Further, its Ad Quality Control team like to work in unison with advertisers to ensure that the ads that are shown are cool, interesting and uplifting. - That way, the consumer experience is seamless and remains elevated. - No one wants boring interrupting ads that they are not the least bit interested in. Moreover, when a user’s “app experience is characterized by ads constantly buffering or the same ad playing repeatedly, they’ll probably find a new app” [4] within minutes...

                                           Image credit: IBM Cloud Private

References

[1]. O'Halloran, Joseph (2019). “Untapped ad opportunity in mainstream OTT arena.” Rapid TV News. https://www.rapidtvnews.com/2019041255689/openx-finds-huge-untapped-ad-opportunity-in-mainstream-ott-arena.html#axzz5lHQtGaMr Accessed 17 Apr. 2019.

[2]. Salkowitz , Rob (2019). “How Much Streaming Can We Take? New Data Sheds Light On The OTT Revolution.” https://www.forbes.com/sites/robsalkowitz/2019/04/10/how-much-streaming-can-we-take-new-data-sheds-light-on-the-ott-revolution/#1b3e90ce6407 Accessed 17 Apr. 2019.

[3]. OONA Channels (2019). https://www.oonatvchannel.com/  Accessed 17 Apr. 2019.

[4]. SpotX (2019). “Predictions for OTT, traditional TV, online video, data activation, and transparency.” https://www.spotx.tv/resource/2019-video-advertising-trends/ Accessed 17 Apr. 2019.