Digital video has become a fast-growing industry. The advancement of the industry is driven by the breakthroughs and digital innovations that make video trends so widespread, both in society and business. Nowadays, many terms in the world of video are emerging such as YouTubers, influencers, view, and so on. OTT advertising (over the top) service gives users the option to consume video content based on needs through the Internet and applications. The service is also beginning to be looked at by advertisers to channel the content they have.
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What does Ott stand for?
OTT advertising (over-the-top) service gives consumers the option to consume video content based on their needs through the Internet and applications. The service is also beginning to be viewed by advertisers to channel their content.
OTT advertising is advertising that is delivered directly to viewers on the Internet through streaming video services or devices, such as smart or connected TVs (CTVs). The term “over-the-top” comes from the ability to bypass traditional TV providers who control media distribution, giving advertisers the ability to directly reach their audiences.
Definition of OTT advertising
OTT advertising is information in the field of approach and modeling (implemented in the form of applications and application services) in the form of video and audio streaming, messaging (instant messaging), and social networking
OTP applications generally run on mobile platforms. For example on mobile phones, smartphones and PDAs (Personal Digital Assistant). But many also run on desktop computers. Face-to-face applications generally use both the web and mobile applications.
Category of OTT Based Applications and Services
- Social Network and Social Media
- Social Connection
- Multimedia Sharing
- Professional
- Informational
- Educational
- Hobbies
- Academic
- Messaging
This category of OTT-based applications emphasizes instant messaging and instant messaging. The availability of these short message applications online makes it easy to communicate both in two directions and bulk (in a public online space). Some examples of OTT-based services and applications (Over The Top) with this category of messaging (instant messaging) include WhatsApp, Line, Telegram, WeChat, etc.
- Streaming Audio Video
This Category emphasizes the types of online audio and video multimedia file streaming services to users. Users can use both mobile and desktop applications. Some things in its development that need to be known include:
The quality of service from the point of view of the service provider (in this case Youtube) through QoS (Quality of Service). Service quality from the perspective of service users through QoE (Quality of Experience). Socket Programming, Port, Address ID which is a requirement in a computer network connection.
Video streaming during Covid-19 pandemic
Video streaming is now increasingly popular in the era of the COVID-19 pandemic when billions of people around the world live at home and spend time watching movies/television series. Revenue from the streaming video segment is expected to increase to $ 30.4 billion by 2024 and big players like Disney, HBO and Amazon are investing heavily in Over The Top (OTT advertising) media which is fast becoming an important category for app developers and advertisers. When we hear the term OTT advertising, the first thing that comes to our mind may be watching television over the internet. But mobile devices (smartphones) play an important role for OTT when users watch in the living room as well as on the go.
The eMarketer report states that 63% of customers in the U.S. most often access OTT advertising from TV. Smartphone devices occupy second place, which is 11.6%. However, the duration of users watching OTT on a smartphone is equivalent to almost 25% of the total viewing duration. That is, the duration of the smartphone device user watching OTT advertising is above the average of other users. Also, smartphones are also often the second screen for OTT customers. Roku streaming service provider provides functionality so that users can use their smartphone as a remote control.
Trends in the OTT advertising
The number of ads showing on OTT advertising channels will increase shortly. Trends in the OTT industry reflect only a fraction of the overall trends in the advertising industry. COVID-19 plunders things that are certain in the past, the advertising industry on all platforms faces unprecedented challenges. The number of installations and the number of sessions for entertainment applications on mobile devices is experiencing positive growth as the world runs social distancing. However, as the economic recession worsens, UA manager budget constraints will force marketers to adopt creative solutions in attracting users. Various platforms have experimented with innovative formats for displaying ads.
OTT advertising statistics
Brands with advanced digital strategies are embracing OTT advertising as part of their performance mix as the future of television becomes increasingly digital and data-driven.
OTT video statistics show that viewing has become widespread in recent years, especially for younger audiences, whose viewing habits have shifted from cable viewing to streaming services and OTT apps such as Netflix, Hulu, Crackle, Plex, Pluto.TV, Vevo and more.
The Benefits of OTT Advertising
- Provide Information
OTT advertising is used by sellers to provide information to the public about the product they want to market. The information can be in the form of usability, capabilities, methods, advantages, quality, and price of the product. Information about the product is essential, especially for a newly marketed product. This is done so that consumers know or are aware that there is a new product or store.
- Branding
Promoting both online and offline branding today can be said to be one of the must-do in every business. With ads, products and stores can be on the front page for easy viewing by potential buyers.
- Persuade Prospective Buyers
OTT advertising is persuasive to potential buyers to purchase a product. Therefore, it is very important to do advertising, especially for new businesses. However, the high cost of creating ads makes many small businesses unable to advertise their products.
- Reduce Risk
The function of advertising is also one to reduce the risk of declining sales of goods. Use ads to advertise new products, unsold products and products you want to highlight in your store. That way, the goods will be easier to reach potential buyers.
- Provide Value Added
Effective OTT advertising can add value to a particular product or brand so that the product or brand can be perceived as more luxurious, more modern, more flexible, more stylish and more prestigious than other products. Overall, these products can meet the desires and needs of buyers when compared to other competitors’ products.