In this era of digital marketing, OTT, or "over-the-top," has become a game-changer in how brands connect with their target audiences across the globe through devices like smart TVs and streaming boxes. As per a report, the number of subscribers to OTT is expected to reach 634 million in 2029. This signifies that a large target audience exists on those platforms that businesses should target. From popular choices like Hotstar and Sony Liv to emerging players like Aha and Manorama Max, there's something for every brand. In this blog, we'll look at how OTT advertising is shaping the future of digital marketing. and how you can utilize OTT media to effectively advertise your brand.
What is OTT?
OTT, or over-the-top, refers to the delivery of video, audio, and other media content over the Internet. It allows viewers to access content on-demand, anytime, and anywhere. OTT platforms such as Arre, MX Player, and Sun Nxt offer a wide range of content, including movies, TV shows, documentaries, and live events, through subscription-based or ad-supported models. As per a report, the Indian OTT market is projected to reach $5.81 billion by 2029, with a compound annual growth rate (CAGR) of approximately 7.43%, which shows the potentiality of OTT advertising in India.
What is OTT advertising?
OTT advertising refers to the placement of advertisements within OTT content streams. There is a wide range of ads, including pre-roll, mid-roll, and post-roll video ads, display ads, and sponsored content. It offers the opportunity to deliver personalized ads to audiences actively engaged with streaming content. India is one of the largest markets for OTT content consumption. In India, the OTT advertising market is rapidly growing, with an estimated market size of $1.47 billion by 2025. Do not postpone your thoughts anymore and grab the opportunity to advertise your brand through OTT platforms such as Alt Balaji, Manorama Max, and Ditto.
Why OTT advertising?
Businesses can create a great impact in the minds of their target audience with the help of OTT advertising. Streaming services on OTT platforms collect data on user preferences and behavior. Secondly, the high engagement of audiences on OTT platforms such as Jio TV, and Epic ON, helps brands deliver impactful content. Additionally, detailed analytics of OTT advertising helps to know who is more likely to convert as their customer. In India, over 60% of internet users regularly stream video content through OTT. In addition to that, revenue from OTT Video advertising in India is forecasted to reach US$4.06 billion by the end of 2024 which indicates the significance of OTT platforms as an advertising medium for brands to connect with a digital audience.
Types of OTT Platforms
Subscription Video on Demand (SVOD)
Users can access OTT content without interruptions from ads through SVOD platforms. Users have to pay a subscription fee to access OTT content without interruptions from ads. OTT platforms such as Sun Nxt and Yup TV are examples of SVOD. In India, the SVOD market is projected to reach $4.5 billion by 2025.
Ad-supported Video on Demand (AVOD)
Ad-supported video-on-demand offers free access to content that contains OTT advertisements. Users can watch movies, TV shows, and other content for free, but they have to watch full ads during their viewing experience. Many ad-supported video-on-demand platforms have content in regional languages. Planet Marathi is one of them. AVOD platforms cater to a large audience seeking free entertainment options in India. The AVOD market in India is expected to grow to $2.1 billion by 2025.
Transactional Video on Demand (TVOD)
TVOD platforms allow users to pay for individual pieces of content on a pay-per-view basis. Users can rent or purchase movies, TV episodes, or other premium content for a specific period. As per a research report, the TVOD market is expected to grow by $380 million by the end of 2025 in India.
Hybrid Models
Hybrid OTT platforms combine multiple revenue models, offering users a variety of content access options. These platforms include a combination of subscription-based, ad-supported, and transactional services to cater to different user preferences. As the OTT market continues to evolve in India, hybrid models are playing a significant role in monetization strategies for content providers.
Benefits of OTT Advertising
Advanced Targeting
OTT advertising allows to target specific audiences based on demographics, interests, and viewing behavior. By using data analytics and learning algorithms, you can deliver personalized ads to the targeted audiences. Targeted OTT ads in India have reported an average click-through rate (CTR) of around 2.5% to 3%. This showcases the effectiveness of advanced targeting strategies.
More Engaged Audience
OTT users are often more engaged with the content they are watching compared to traditional TV audiences. This enhances audience engagement, which helps grab their attention during ad breaks, resulting in increased brand awareness and recall value among users. A study found that viewers watching OTT content were 1.5 times more likely to remember ads and brands compared to those watching traditional TV, indicating the value of reaching a more engaged audience through OTT advertising.
High Click-Through Rate
OTT advertising helps generate higher click-through rates (CTRs) compared to other digital advertising channels. This type of OTT ad encourages viewers to engage with ads, leading to increased CTRs and conversion rates for businesses. In India, OTT ads have reported CTRs ranging from 1.5% to 3%, depending on factors such as ad format, targeting criteria, and creative quality. It highlights the effectiveness of OTT ads in driving user engagement and action.
Ad Personalization
OTT advertising allows for highly personalized ad experiences that are specially crafted for individual viewer preferences and interests. By having data insights and user profiles, businesses can deliver relevant and timely ads that connect with audiences, enhancing the advertising experience and driving higher levels of engagement. In India, over 70% of OTT viewers prefer personalized ads over generic ads, indicating a strong demand for personalized advertising experiences on OTT platforms.
Cross-Device Targeting
OTT advertising enables businesses to reach their audiences across multiple devices, including smartphones, tablets, smart TVs, and computers. This cross-device targeting ensures broad exposure and reach for businesses; it allows them to engage with audiences across various OTT platforms. According to a survey, over 90% of internet users access OTT content through their smartphones in India. This indicates the significance of mobile devices in OTT consumption habits.
Top OTT advertising platforms
BookMyShow
BookMyShow is primarily known for its ticketing services. It has started in the OTT space with BookmyShow Stream. It offers a diverse range of movies, web series, and exclusive content. BookMyShow has over 50 million monthly active users, providing a significant reach.
Tata Play
Tata Play has expanded its services to a wide range of OTT content through its Tata Play platform. It offers live TV channels, movies, shows, and on-demand content. In India, Tata Play has a subscriber base of over 40 million with over 600 channels and services. This data helps businesses target a wide audience across the nation.
Shemaroo Me
Shemaroo Me offers plenty of movies, shows, music, and regional content catering to Indian audiences. Research shows that Shemaroo has over 25 million app downloads. This data clearly shows how effectively you can connect with your huge target audience across the country and globe as well.
Zee5
Zee5 is one of India's leading OTT platforms, offering plenty of content including movies, TV shows, original series, and live TV across multiple languages. Zee5 has reported over 76.4 million monthly active users, making it one of the most popular OTT platforms in India. With a content library of 100,000+ hours across 12 languages, businesses can utilize Zee5’s extensive reach to target specific demographics effectively.
Conclusion and the future of OTT
OTT advertising has emerged as a powerful tool for brands to engage with their target audience. The rise of connected TV (CTV) and the Internet of Things (IoT) presents a rich ecosystem for OTT advertising. With smart TVs, streaming devices, and even household appliances becoming interconnected, businesses can use data from these devices to deliver hyper-targeted and contextually relevant ads. By using the power of OTT strategically, brands can grab audiences' attention, drive engagement, and achieve OTT advertising objectives.
Why choose Excellent Publicity for OTT advertising?
Excellent Publicity is the top digital marketing agency in India, offering effective solutions for OTT advertising that will help build your brand and bring in more leads that expand your business. With our extensive range of services, we have cracked the code of business growth for all types of OTT advertising needs.
Make us your branding partner today. Contact us to learn more about how our advertisement expertise will help you enhance brand awareness, reputation, audience reach, and recognition through OTT advertising.