OTT advertising in India: Effectiveness and scope
In India, consecutive lockdowns have led people to watch their favorite movies and TV shows at the time and device of their choosing, as cinemas were closed indefinitely & watching pre-scheduled shows on cable television was not feasible due to changes in family time dynamics. Most people used OTT platforms to watch movies and TV shows, so as new-age marketers we need to focus on these emerging TV+ platforms to reach the ideal customers. Let's explore what OTT advertising is.
What is OTT Advertisement?
An OTT advertisement is a type of advertising in which non-skippable ads of 5,10, 15 or 30 seconds run on video-on-demand (VoD) streaming platforms, such as Hotstar, Mx Player, Voot, etc. OTT services can be accessed through devices such as smartphones, tablets, laptops, Smart TVs, and gaming consoles. These ads are displayed when a user is streaming a show, movie, or live sports like Disney+ Hotstar IPL, etc., across the country.
How are OTT platforms performing and What is the scope of OTT advertisements in India?
The number of users of India's OTT platforms surged during the lockdown. The market estimate of OTT media services was approx $2 billion in 2021 and an estimated worth in 2018 was $2,150 crore. VoD platforms are in no way going down in the future as it is the golden era of content creation with low entry barriers. Factors accelerating the growth of this market include access to high-speed internet with fewer data charges, the rapid expansion of internet-enabled mobile phones, and personalized content with customized subscriptions. Smartphones are the most preferred device in India. The predicted worth of this market is $15 billion in 2030. Currently, there are 30 above OTT media services providers in India and Disney+ Hotstar is the most subscribed OTT platform despite the entry of global majors like Netflix and Amazon Prime Video with approx 46 million active users. The scope of OTT advertisements in India is now as follows:
- With 350 million people in India using OTT platforms, there is a possibility to reach a larger audience along with strong targeting as OTT advertising allows the marketer to build an audience based on their location, income, and other attributes and present advertisements to those viewers for a specific period of time.
- OTT platforms are effective as part of an advertising mix with powerful analytics by combining OTT advertising with other advertising mediums, such as video advertising, which increases customer awareness. Because of the high density of different ages, genders, cultures, in India, OTT advertising can help brands to collect data such as impressions, click-through rate (CTR), cost per click (CPC), budget, and conventions which can help them optimize their business.
- OTT advertising offers high view rates and flexibility in the budget in a heavily populated country like India. Budgets can be scaled up or down according to the brand's objectives. It avoids the excess of reaching people the brand doesn't intend to target. As these advertisements are of short duration and non-skippable, they fetch a greater engaged audience.
The increase in OTT users in India has opened up new opportunities for advertisers to reach a larger audience and receive better targeting opportunities, in addition to powerful analysis and budget flexibility.