Why brands are moving away from TV and OOH and turning to advertising on OTT platforms
The pandemic contributed greatly to the surge in OTT popularity, & businesses and brands are sitting up and taking notice. Marketing spends have changed with OTT advertising gaining importance across India. Akshay Modi, the Managing Director of Modi Naturals Ltd shares his thoughts on the same.
Every aspect of the world has changed since we were struck by COVID-19. Brands have been realigning their operations and strategies, and have undergone significant transformation since then.
There has been a humongous shift from offline channels to online channels as well as a major shift in the sources of entertainment for consumers. Amid the mass disruption caused by the pandemic worldwide and with every source of entertainment shut off, be it theatres, sporting events, gyms, and other public venues, people were forced to stay in and consume entertainment through different media types and over-the-top (OTT) services.
This led to a massive surge in OTT platforms. Owing to the increasing number of consumers on OTT platforms, brands are also eyeing tem for advertising purposes and moving their advertising spends from TV and OOH to OTT. Brands today prefer OTT platforms for the following reasons.
1. The need for fresh content
With the western culture transformation setting in and consumers beginning to live in nuclear family settings, there has been a shift from traditional TV settings to using phones for fun. Consumers' need for entertainment is getting complex at a family unit level; it is becoming more individualistic and preferential in nature with a constant need for fresh and quality content.
In a family setting, a parent or a grandparent might want to watch an episode of Mere Sai or Ahilyabai on TV. The youngsters of the family might want to watch the latest episodes of Money Heist or The Squid Game. If there’s only one television in the house, the answer is OTT platforms.
Each member can use a different device to watch what they want at the same time. OTT platforms are also preferred by first-time film or web series fans as these are excellent mediums to take enthusiasm to the next level.
2. Dynamic advertising with data-driven approach
Viewership is shifting from conventional TV to OTT and following this drift, OTT is becoming a hot asset for every advertiser. Dynamic advertising is available through OTT, which means that different audiences can obtain various tailored versions of an ad. There is also a data-driven approach in OTT advertising; the right message is delivered to the right consumer at the right time.
Real-time data is available, especially where users engage with the brand when the ad is shown. This data can include the traffic attribution data, sign-ups, purchases, and overall performance.
This helps the brand in reaching out to their consumers in a cost-effective, efficient manner, following a scientific, methodical, pragmatic, and number-driven approach.
3. Higher viewer rates and precision in targeted audiences
The viewer rate is exponentially higher than traditional TV advertising for OTTs and it requires exposure to increase brand lift and achieve desired results.TV programming is replayed on a DVR with the skip feature activated, whereas programmatic OTT plays pre-rolls and mid rolls.
OTT advertising allows direct communication with target audience members. Ads play only when an individual chooses to actively tune in and watch, since many OTT services don’t allow skipping of ads, and view completion rates rise.
Traditional TV is co-viewed in a living room in front of multiple people, and often fails to connect with relevant viewers. OTT platforms offer flexibility to engage audiences across programmes, geographies, demographics, and behavioural preferences.
Brands are embracing this technology shift and are profiting from the engaged, precision-oriented audiences. OTT advertising shouldn’t be a one-size-fits-all approach and every brand needs to formulate a strategy suitable for them in these changing dynamics of advertising media.
4. Multiple formats of advertising with focus on interactivity
OTT has been experimenting with multiple formats of advertising such as integration of content with the story. Unacademy did it beautifully with the web series Kota Factory. Another format of running ads is during the streaming of content (both live streaming and library content) and advertiser-funded programmes along with other brand solutions.
The OTT era also focuses on interacting and engaging with audiences. This helps brands get a better understanding of their target group and interact at a much deeper level with features like polls, quizzes and play-alongs to create meaningful conversations.
A growing OTT marketplace is a boon for consumers looking for content and an opportunity for advertisers to reach the right set of audiences. OTT reach is multifold and diverse in terms of languages, affinity, and regions, and set to benefit marketers.
Edited by Teja Lele
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)