While traditional TV continues to be a reliable advertising medium, audiences continue to move towards streaming services.
The Rise of OTT as an Advertising Medium
OTT puts together the latest digital advertising and mainstream media, with high commercial delivery levels and viewability. Indian OTT services drive their growth by advertisements, media plans suggesting that Hotstar is the most prominent advertisement channel after Google and Facebook. With digital advertising growing at around 30 percent, OTT ‘s advertising growth is expected to range from 40 percent to 50 percent year-on-year. One of the critical reasons for the growth of OTT channels in India is the opportunity for audiences to watch programs they missed on TV on the OTT platform. The advertisement spending on OTT is projected to be between 7% and 8% of advertisement spend in India.
OTT platforms have better brand security compared to other digital platforms such as Facebook and Google. They are inherently less vulnerable to the dual challenge of viewability and fraudulent traffic due to high authentication rates, the closed environments of the devices, and the nature of viewing experience. The growth of OTT channels in India is further fueled by regional-language platforms such as Hoichoi, Addatimes, and Sun NXT, which gained significant prominence in the past recent years and has announced Hotstar as national OTT players and extra movie and jio rockers to concentrate more on local language content.
The Future of TV Advertising Is Here
Like for mainstream tv, OTT is one of the most powerful channels for company analytics operating. American video-on-demand provider Hulu undertook a survey, and the market research agency, Kantar Millward Brown, found that access to marketing messages in a living room environment generated the highest degree of awareness-raising brand-friendliness relative to online and smartphone viewing. OTT is an essential forum for publishers, retailers, and marketers to target premium audiences on a scale and deliver meaningful brand outcomes.
Indeed, the move to OTT is supposed to help marketers significantly by allowing for more granular analysis and output monitoring relative to conventional index-based tv transactions. That helps in real-time to narrow down and reach personalized, diverse audiences. Advertisers who move to OTT early until it becomes part of the budget stand in each marketing team can benefit from developing partnerships with programmatic providers. The latter can align advertiser material to crucial viewers.
The Revolution Will Be Streamed
While scope and measurement are the significant obstacles, the platform faces, advancements in OTT measurement evolve rapidly, particularly across programmatic channels. Despite the opportunities OTT offers, the industry struggles to seek out how to exploit its full potential. While OTT has mostly won the fight for homes in urban India, there is plenty of space for growth as television viewing in rural India continues to grow. The potent combination of a profoundly active audience, campaign effectiveness, and ad fulfillment levels brought to the table by OTT platforms make them an increasingly important medium for marketers.