Over-the-Top (OTT) sources of entertainment have been booming. Experts predict that the market for OTT services will reach $332.52 billion by 2025. That equates to an average CAGR growth rate of 16.7% from 2018 to 2025.
Consumer demand for OTT services was already growing at a tremendous rate. However, Covid-19 and social distancing orders have caused that demand to skyrocket. Now, more people have at least one streaming video subscription (68%) than a traditional pay-TV subscription (65%).
Clearly, OTT content and services are growing at an unprecedented rate. That’s causing stakeholders at all levels to reconsider their approaches to the market. Whether your company has invested in OTT already or plans to do so soon, it should understand what it’s getting into.
Below, you’ll learn what advertisers, publishers, and content owners can do to prepare themselves for the OTT boom. With the right strategy, your company can ride the impressive wave of OTT growth to a more profitable 2021.
OTT services present advertisers with several unique opportunities to reach target audiences. It’s why spending on Connected TV (CTV) and OTT ads is expected to reach almost $11 billion by 2021. Your brand can get more out of its 2021 OTT advertising campaigns by embracing the unique tools of the medium.
First, be sure to laser-focus on your target audience. OTT offers brands an unprecedented ability to target users at an ultra-precise level. Your company can use this feature to show its ads to the consumers that actually want to see them.
Even better, OTT offers the opportunity to personalize your ads more than usual to speak directly to a niche audience. You can even cross-target specific consumer groups through website retargeting, IP targeting, and device thumbprints.
Being able to maximize what you get out of the unique tools that OTT offers advertisers could be the key to your 2021 marketing strategy. Doing that starts with understanding your core user-personas at a fundamental level. Start there and your company will be well on its way to capitalizing on 2021’s OTT boom.
Publishers can also capitalize on the continuing OTT boom. However, to do so, your company will need to determine and successfully implement the correct monetization strategy. There are three major options to choose from:
Under an SVOD model, users are charged a per-month or per-year price for accessing as much of your content as they want. Companies like Netflix have used this model to achieve incredible success. The company currently makes about $950 million a month in subscriptions.
TVOD models ask users to pay a small fee for each piece of content they want to access. Amazon sells some of its content in this way. The company made around $1.07 billion in 2018 on digital TVOD sales. However, the overall market for TVOD services is declining.
YouTube is the most famous example of an AVOD service. Under this model, publishers give consumers free access to content. However, the users have to watch ads to consume that content.
Publishers need to decide which of these models is best for their library of content. Make the right decisions and your company will have laid a solid foundation for capitalizing on the OTT boom in 2021.
Content owners also have plenty of opportunities to capitalize on OTT’s growth in 2021. For them, implementing a successful OTT strategy may come down to making the content easy to find, access, and view as possible.
Achieving this will require developing a keen understanding of what viewers are looking for in an OTT experience. Most importantly, you need to provide consumers with an excellent viewing experience. The quality of your content needs to be crisp and streaming should be seamless.
You should also work to personalize the viewer’s experience as much as possible. Netflix famously does this with their recommended pages. They take into account what users like and have watched before and then recommend new shows and movies based on that information.
By incorporating strategies like these into users’ viewing experiences, content owners can differentiate themselves from a sea of other OTT options. Achieving this could be key to maximizing your profits during 2021’s OTT boom.
All parties can benefit from working with OTT experts to maximize their 2021 OTT strategies. If you’re looking for some help in crystalizing your plan, consider contacting VTV Studio.
We’re the OTT experts who offer unique services for advertisers, publishers, and content owners. We can set you up with a full white-label solution if you’d like to create your own OTT channel. We also help publishers find paths to stable monetization and ROI and give advertisers high-quality OTT and CTV traffic to target consumers.
VTV Studio would love to help you capitalize on 2021’s OTT boom. We hope to hear from you soon to get started.