In recent years, the evolution of mobile devices and telecommunications has significantly shifted the landscape of marketing. A few years ago, it was widely believed that the future of advertising would revolve around mobile terminals, leading to a decline in traditional TV ads. However, with the rise of internet-based television and the growing influence of tech giants like BAT, the focus has now shifted to the "living room economy." OTT (Over-The-Top) platforms have emerged as a powerful medium for connecting people within the family unit, becoming a crucial channel for brands in the era of the Internet of Everything.
Recently, Ove Cloud.com collaborated with industry partners and TV manufacturers to release a comprehensive guide on OTT ad delivery. This guide explores various aspects such as the current state of OTT advertising, the value of large-screen media, user behavior, and effectiveness metrics. It provides valuable insights through extensive data analysis and research, helping marketers better understand the potential of OTT in their strategies.
As one of the first domestic advertising technology companies to introduce OTT into programmatic buying, Youyi Interoperability has offered fresh perspectives on this guide from an advertising technology standpoint, highlighting how OTT can enhance targeting and engagement.
The growth of OTT users has far surpassed that of traditional digital TV. According to reports, by mid-2017, there were 234 million OTT devices in China, accounting for 80% of the scale of cable TV households. The number of active OTT users reached 126 million, which is about 66% of the users of cable digital TV subscriptions. Meanwhile, traditional TV subscribers are declining at a rate of 2.1 million households per quarter, while OTT users are increasing by 4.5 million each quarter. This trend clearly shows that Internet TV is gradually replacing traditional TV, marking a significant shift in the media landscape.
Moreover, OTT users represent a more affluent and dynamic segment of China’s middle class. They are younger, more tech-savvy, and seek innovation and quality. These users not only own real estate and cars at a higher rate but also plan to make major purchases. Their purchasing power and lifestyle preferences make them highly attractive to advertisers, further emphasizing the marketing potential of OTT.
One key advantage of OTT over other digital media like PCs or mobile devices is the large screen. The bigger the screen, the more attention it captures, leading to longer and more engaged viewing sessions. As a result, users tend to watch more content on OTT platforms than on smaller screens. A survey revealed that after acquiring an Internet TV, many families rarely use PCs, tablets, or smartphones for video consumption. This shift in behavior challenges the assumption that mobile devices would dominate user attention, showing that OTT has successfully redefined how people interact with media.
With 570 million online video users across all devices in the first half of 2017, and 330 million OTT users, the overlap between OTT and digital media is significant. About 71% of OTT users also watch online videos on other platforms, meaning that 100 million users exclusively use OTT for video content. For advertisers aiming to reach a broad audience, OTT has become an essential part of their strategy.
Multi-screen programmatic buying, powered by OTT, enhances the efficiency and effectiveness of advertising. With 340 million users still watching videos on PCs and mobile devices, single-platform campaigns are no longer sufficient. Programmatic buying connects vast digital resources, integrates online and offline user data, and optimizes ad delivery through multi-screen targeting. Companies like Youyi Communication have pioneered this approach, integrating OTT with PC and mobile resources to create a seamless "big screen + small screen" experience. By leveraging cross-device data, they improve audience segmentation, frequency control, and timing optimization, maximizing ad impact.
As OTT continues to grow rapidly, its importance in the marketing world cannot be overstated. Advertisers must adapt quickly to capture this new frontier. The future belongs to those who can effectively link data across multiple sources, building a more integrated and intelligent marketing ecosystem.
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