OTT has become the main content distribution channel, and large-screen marketing has entered a golden period. At a high-level, OTT systems and technologies are designed to minimize the impact these parameters have, by providing a “best effort” approach to serving up the content. That is, OTT technology will adjust to the network performance of the entire chain in real-time so that the video and audio are delivered without pauses caused by buffering.
Under the background of the third year of the global epidemic, the TV industry has ushered in a new market environment with weakened hardware sales and increased service value.
This has created a distorted sense of contradiction in the color TV market: TVs with the worst sales record in a decade are unprecedentedly popular with big-name advertisers such as Chanel and Versace, and the proportion of large-screen advertisements has almost doubled.
On the one hand, the global economy has been negatively affected by the epidemic, which has indirectly reduced the public’s desire and ability to consume color TV products. In 2021, my country’s TV market will fall below the 40 million mark, and the market retail scale will be 38.35 million units, a year-on-year decrease of 13.8%, a record 10%. year lows.
On the other hand, the epidemic has also brought mass entertainment back to the living room. In 2021, TV viewers will watch the market for 5.83 hours a day, an increase of 12.3% compared with 2019 before the epidemic. At a time when the “attention economy” has become a consensus, the value of large-screen marketing It is generally recognized that OTT advertising traffic has become the only growth curve among the three major screens (TV, PC, mobile phone).
The big screen becomes the main content distribution channel
Time comes to 2022, and the proportion of OTT in home entertainment will continue to increase. During the Spring Festival this year, the daily active scale of smart TVs reached 114 million, a significant increase of 35.7% compared with the same period last year; the average daily TV viewing time during the Spring Festival was 6.63 hours, an increase of 21.7% compared to before the Spring Festival.
While the color TV industry, which has shifted from the incremental market to the stock market, has encountered sales difficulties, smart TVs have achieved a transition in service and marketing value by relying on the vast number of stock users. The OTT industry, with a user scale of over 900 million and a stable number of daily active terminals exceeding 100 million, will be widely concerned by the capital market in 2021. The active development of the layout reflects the successful expansion of the large screen at the user level and the continuous enhancement of the right to speak in the field of content consumption.
Nowadays, the big screen has become an important distribution channel for short and medium videos, and at the same time, it has made great contributions to the expansion of users of the terminal video platform. It is reported that in 2021, the MAU of station B on the TV side has surpassed the PC side, and the CEO of station B pointed out: “The overlap rate of users on the TV and mobile terminals is less than 20%.”
OTT will finally bid farewell to the value depression
With the inclination of traffic, OTT large screens are increasingly favored by advertisers, and the three major industries of food and beverage, beauty and personal care, and retail services have grown significantly.
According to the “2021 NEW TV Marketing Report” released by Miaozhen System, 25% of advertisers have increased their large-screen budgets in the past year. Especially for beauty and personal care brands, the growth rate of advertising on the OTT side in 2021 will reach 28.45%, and nearly 20% of brand owners have an independent budget for OTT marketing.
In addition, it has to be mentioned that, as a natural marketing platform, the large screen has a more shocking expressiveness, a better ability to present product details, and an effective screening of the spending power of target customers that owns the living room. All makes OTT attractive to advertisers of high-value goods, luxury goods and other brands.
Of course, OTT not only provides a large amount of high-quality content on the large screen in the living room, but for advertisers, the big data and artificial intelligence that follow intelligence have made it possible for precise delivery and “integration of quality and effect”.
Taking Cooca Technology, the first unicorn company in the OTT industry as an example, relying on its coverage of 110 million terminals (data as of September 30, 2021), Cooca Technology has occupied more than 1/3 of the market share, and has established A complete user portrait data system has been developed.
With the help of the native DMP data management platform and CDP user data platform, Coocaa Technology can formulate precise advertising strategies for advertisers before the launch, make the advertising data transparent and visible during the advertising process, adjust the plan at any time, and launch it after the launch. After review, post-link analysis is conducted on high-penetration groups to help advertisers continue to explore and optimize delivery mix plans, so as to achieve the “integration of product and effect” that increases sales and brand value at the same time.
After users are tired of the stereotyped patch advertisements, the intelligence of the big screen also provides more possibilities for advertisement placement, including start-up advertisements, dominant screen advertisements, channel entrance advertisements, recommended advertisements, patch advertisements, and screensaver advertisements. , application portal advertisements, global pop-up advertisements, event advertisements, mall advertisements and Coocaa’s original thematic advertisements, a total of 11 types. With richer and more diverse advertising forms, OTT marketing has the characteristics of Internet media orientation, strong strategy, and interaction, and is the most imaginative advertising delivery terminal today.
However, compared with the powerful marketing capabilities of the large screen in the living room, the OTT advertising industry is still in a significantly undervalued position, creating a value depression with the most marketing potential. Data shows that in 2021, OTT revenue will reach 15 billion yuan, of which membership revenue will account for about 20% and advertising revenue will account for about 80%. Whether compared with the trillion-level Chinese overall advertising market or compared with the 500 billion-level mobile Internet advertising, the OTT large-screen advertising market has huge room for growth.
Undoubtedly, more and more brands and manufacturers are now paying attention to the large-screen OTT market with strong precision marketing capabilities but seriously undervalued prices. Under the background of users returning to the living room for entertainment and the large screen as the main distribution channel for high-quality content, and with the joint exploration of value by industry participants, it is believed that the long-term underestimation of OTT large-screen marketing value is expected to end in 2022.
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