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OTT | A Global Perspective

29 November 2019

“In 2018, OTT video revenues were just 18.6% of the size of global TV subscription revenue. By 2023, they’ll jump to 35.4%”  –Global Entertainment & Media Outlook 2019 -2023, PwC

Video consumption, in both mature and developing markets, is on the rise., The Global Over-The-Top (OTT) revenue is set to increase at a 13.8% CAGR to reach US$72.8bn in 2023. In order to leverage this exponential growth, video-streaming platforms are creating ad formats and opportunities for brands.

Today, brands are turning to OTT platforms because of the huge audience size, accurate audience segmentation and higher ROI. While we have previously looked at the current OTT trends within India (read here), in this section, we take a look at some of the most innovative ad solutions from global OTT platforms.

Three innovative ad solutions from around the world:

1. Tencent Video

What’s Tencent:

A Chinese video streaming website owned by Tencent.

What’s different:

Mid-roll ads have been a norm since the advent of TV. Hence at this stage, users are well-acquainted with ads that pop-up in-between a video.

However, what if we told you it’s possible to embed an ad within an existing movie or show? This is exactly what Tencent Video is testing out.

For example, if an actor is holding just a regular cup of coffee in a movie, this new API will enable Tencent to change that cup into a branded cup of coffee. See it for yourself.

Learn more about how it works:

2.  Youku

What’s Youku:

A Chinese video hosting service from Alibaba Group Holding Limited.

What’s Different:

It’s no revelation that consumers tend to pause a video multiple times. Youku used this insight to create one of their most popular ad formats -Pause Ads. These ads are displayed whenever a video is paused. Such ads stay on the screen until the video is resumed. Although it is usually static, it can be quite impactful – if the video is paused several times, a viewer will also see it multiple times. This increases the impression rate per the same user.

3. Hulu

What’s Hulu?

A leading American subscription-based video-on-demand service from Walt Disney.

What’s Different:

Brands have been using product placements in films for a while now. Hulu takes it a step further, by allowing brands to insert themselves into original narrative showcased on the platform.

These full-funnel creative solutions include

  • In-Show Integration
    Inserting brands into the narrative of Hulu Originals.
  • Custom Creative
    Co-branded advertising created by Hulu’s in-house creative team
  • Branded Content
    Develop branded video content leveraging the power of Hulu storytelling.

    Shoppable Video Ads: A sneak-peek into the future of OTT commerce

    Combining the best of both the e-commerce and entertainment spheres, shoppable video ads are the future of OTT commerce platforms. They allow consumers to shop products featured in the video, directly from the video itself.

    Examples of shoppable ad campaigns:

    1. Ted Baker has been leveraging the format extensively and has already launched three high-quality shoppable video campaigns: #CURIOSITIES and ‘TedPresents’, Mission Impeccable, and Keeping up with the Bakers.
      Experience Mission Impeccable here.
    2. Alibaba is another brand that prioritizes customer experience throughout their digital ecosystem.  During the Singles Day 2017 campaign, Alibaba held a ‘See Now, Buy Now’ live fashion show in Shanghai.
      The four-hour show was broadcasted live while 200+ models including Pharrell Williams and Maria Sharapova graced the catwalk. The audience was able to purchase the showcased items on the spot while watching the broadcast.

    Indian OTT from a global lens

    While key video streaming platforms are quickly expanding their presence in the Indian market, in terms of innovative ad solutions, there is still a long way to go. Most OTT platforms in India have capped their advertising opportunities to the traditional pre-, mid- and post-roll ad slots.

    However, there are a few platforms that are ahead of the curve and gaining attention for the unique opportunities that they offer, such as brand integration in original content. As the Global OTT market continues to soar, both brands and OTT platforms have a lot to learn by looking at international counterparts.

    For innovative ad solutions closer to home, click here.