The OTT platform, also known as OTT media or streaming services, has become a significant hub for entertainment. India's OTT advertising market is booming, with a projected compound annual growth rate (CAGR) of 28.6% from 2021 to 2026. As advertisers, you know that video has been hard to measure compared to traditional display and search ads. But those days are behind us now.
OTT advertising allows businesses to reach their target audience effectively. The video-on-demand feature can deliver compelling video advertisements to users who are actively engaged in consuming content. A survey indicates that over 70% of OTT viewers in India recall seeing ads while streaming content, highlighting the effectiveness of this advertising medium. Moreover, platforms like Ditto, Jio TV, and EPIC ON offer different advertising options, catering to the needs of various businesses. In this blog, we will look into the world of OTT advertising and explore the platforms and advertising strategies available to reach your desired target audience.
OTT platforms have seen a remarkable rise in India in recent years. These platforms, also known as streaming services, have become increasingly popular due to their variety of content. The number of OTT video viewers in India had reached 500 million in 2023. OTT platforms have changed the advertising landscape in India by offering new opportunities for brands to connect with their target audience. While traditional TV viewership is declining, businesses are shifting their focus to digital platforms like OTT for better audience reach and engagement. According to the report by Dentsu, OTT advertising spending in India grew by 34% post covid.
Target audience is crucial in advertising, as it ensures that advertising efforts are directed toward individuals who are most likely to be interested in the products or services being promoted on the OTT platforms. According to a survey, 52% of businesses in India believe that audience targeting through OTT media is the most important factor in driving campaign success.
By knowing your target audience, you can choose the right channels to reach them. Audience segmentation is one of the effective advertising strategies as it involves dividing a larger audience into smaller, groups based on characteristics such as demographics, interests, and behavior. This allows businesses to customize their messages and offer specific audience segments which results in higher audience engagement and conversion rates.
Overview of Different OTT Platforms
OTT platforms in India offer a diverse range of content and advertising opportunities. Popular OTT platforms, including Shemaroo Me and Planet Marathi, have unique audience demographics, content offerings, and advertising formats.
Demographics and User Behavior of OTT Platforms
It is very important to understand the demographics and user behavior of OTT platforms for effective targeting. For example, Hotstar is popular among sports enthusiasts and millennials, while Sony Liv attracts viewers interested in Bollywood and original web series. While Zee5 caters to a broader audience with regional content in multiple languages.
Quality Content
The quality of the content displayed on an OTT platform plays a significant role in attracting and retaining viewers. Platforms offering a wide range of high-quality content, including movies, TV shows, and original series, tend to have higher viewer engagement. According to a survey, 78% of OTT viewers in India prefer platforms with a wide variety of content options.
Audience Reach and Demographics
Understanding the audience demographics of an OTT platform is important for targeting the right audience with video advertising. Platforms like Hotstar and Sony Liv have a large user base consisting of millennials and urban audiences, while platforms like Aha and Sun NXT cater to regional language speakers and audiences in Tier 2 and Tier 3 cities.
Advertising Options and Formats Available
Different OTT platforms offer various advertising options and formats to businesses. These include pre-roll ads, mid-roll ads, banner ads, and sponsored content. Marketers should consider the effectiveness and suitability of each format based on their campaign objectives and target audience preferences. For example, interactive ads and shoppable ads are gaining popularity due to their engaging nature and ability to drive conversions.
Subscription Models
Subscription-based OTT platforms require users to pay a subscription fee to access premium content without advertisements. In India, the subscription-based OTT market has been experiencing significant growth. Subscription Video-On-Demand (SVOD) services in India are expected to generate revenues of around ₹US $2.02 billion by the end of 2024. This shows an increasing demand for advertising through OTT subscription models.
Ad-Supported Models
Ad-supported OTT platforms offer free content to users while showing advertisements during playback to monetize their services. This model is very popular in India, where OTT platforms like Sony Liv and Hotstar attract millions of users by providing free access to a wide range of content. Advertising revenues for ad-supported OTT platforms in India are projected to reach US$140.60 million by 2024. This data shows the significant role of ad-supported models on OTT platforms in the Indian market and their growing importance as a revenue-generating medium.
Interactive Ads
Interactive ads allow viewers to engage with ad content actively, such as by clicking on hotspots, answering polls, or exploring additional information. Interactive ads on OTT platforms in India have increased brand engagement by 32% compared to traditional ads.
Shopping Ads
Shopping ads on OTT platforms enable viewers to make purchases directly from the ad itself. This kind of shopping experience enhances convenience for consumers and can lead to higher conversion rates for businesses. A report predicts that spending on shoppable video ads through the OTT platform in India will grow by 54% annually over the next few years.
Opportunities in the OTT landscape
The OTT landscape offers a rapidly emerging environment where brands can connect with their target audience in creative ways. OTT platforms have enabled brands to reach a wide audience across the globe. It provides opportunities for monetization and growth in OTT advertising. Moreover, OTT platforms’ creativity in content creation and advertising strategies allows brands to experiment with new formats and technologies. With the increasing adoption of OTT platforms in rural and semi-urban areas, there are significant opportunities for expansion and market penetration. By adapting to the evolving digital landscape and utilizing the unique advantages of OTT platforms, brands can unlock growth and success in the world of online streaming and video advertising.
Why choose Excellent Publicity for OTT video advertising?
Excellent Publicity is the top media services agency in India, offering effective solutions for OTT video advertising strategies that will help build your brand and bring in more leads that expand your business. With our extensive range of services, we have cracked the code of business growth for all types of OTT video advertising needs.
Make us your branding partner today. Contact us to learn more about how our expertise in media services will help you enhance brand awareness, reputation, audience reach, and recognition through OTT video advertising!