Published February 5th, 2019
Research from Frost & Sullivan has revealed that the explosion of OTT and user generated (UG) video content in the current multiscreen environment is creating strong demand for monetization technologies among both content owners and advertisers.
The F&S report, Global Online Video Advertising Market, Forecast to 2023, calculates that the targetability, personalization capabilities and interactivity offered by online video advertising solutions will drive the $30 billion market toward $120 billion by 2023.
The study also notes that the rapidly expanding viewer pool of live/linear and video-on-demand (VOD) content such as sports and special events has spawned a large market for seamless ad delivery, with elements such as dynamic ad insertion, that is consistent across devices and platforms. It also says that cloud- powered server-side ad insertion will emerge the dominant technology as it meets stringent monetization and user experience demands.
“By the end of the forecast period, video ads are forecast to account for more than 20% ofall digital ad spending,” said Aravindh Vanchesan, digital transformation industry analyst at Frost & Sullivan and author of Global Online Video Advertising Market, Forecast to 2023.
“Mobile video ad spending, in particular, will account for 75% of digital video ad spend as advertisers, media companies, and publishers follow audiences away from traditional TV and desktop. While ad insertion technologies are finding high uptake among advertisers, ad blockers also are becoming common on both desktop and mobile platforms. This is resulting in lower completion rates and lost revenue opportunities…Besides, as the competition continues to intensify, there will be a need to prioritize market education and awareness initiatives to communicate vendors’ competitive strengths in capabilities.”
As the online video advertising market becomes increasingly populated, participants can stay competitive by seizing the growth opportunities presented by:
* Offering smooth, scalable, high-quality live video experiences optimized for
* Delivering targeted ads to millions of concurrent viewers.
* Engaging in merger & acquisition activity with regional, niche vendors, especially for ad tech solutions.
* Embedding products and services with personalization and customization capabilities such as user video profiles, recommendations, and localization for device and region.
* Ensuring scalability of DAI solutions, particularly for live video events.
As OTT continues to surge, media companies cannot afford to wait on the sidelines. Digital media consumers across generations are increasingly in the driver’s seat—and their expectations to content, quality and user experience, are at an all-time high. Some major shifts are now occurring. What are the implications for technology, media, and telecommunications companies?
What to expect:
- Be inspired by a wide range of presentations from highly respected, industry thought leaders
- Get updated on the latest trends and future of streaming media
- Strengthen and enhance your network with industry peers in an exclusive and relaxed setting
- Share experiences, best practices, and know-how
- A fabulous networking drink reception & delicious coffee breaks
Secure your ticket to the OTT Day in London today and gain a 360 degree view of the OTT ecosystem.
May 16, 2017
Consumer habits will continue to evolve with rapid advances in technology. In an increasingly fragmented market across Asia Pacific, innovation driven by consumer needs will be a key tool in the arsenal of pay-TV operators, both big and small. Operators who can offer their customers greater choice and value will flourish in 2017 and beyond.
Over the last few years, technology has transformed the consumption of television. As a result, the pay-TV industry is undergoing a period of change and development with intensifying competition and business model disruption. In Asia Pacific, the industry is projected to grow at a 5.8 per cent average annual rate from 2016 to 2021. However, traditional pay-TV platforms are being threatened by the rise of video on demand (VOD) and over-the-top (OTT) services. 2016 saw the entrance of Netflix in markets across Asia. Other OTT players in the region such as iFlix, Hooq and Viu are also vying for a share of the market.
Although the markets in Asia Pacific are at varying stages of change and evolution, given the differences in economic conditions, demographics, penetration of broadband and pay-TV, and content preferences, there is no doubt that pay-TV providers across the region must develop viable new offerings to retain and grow their customer base.
On every front, at every step in the OTT workflow and ecosystem, evolving technologies and changing consumer habits are driving the industry and impacting the way content is created, delivered, viewed and monetized. Keeping pace in an increasingly fragmented market driven by consumer needs is challenging. Join us at the OTT Days event in Singapore we look into the myriad of technical and business decisions faced when launching an OTT solution.
Moving from analog to digital: In order to provide enhanced services to customers and meet regulatory requirements on analog switch-off, pay-TV providers across the region are expected to continue the move to digital broadcasting. This will be seen across countries such as Singapore, Indonesia, Thailand, Philippines and Vietnam as they work towards switching off analog broadcasting entirely. Customers will benefit from more programming options and higher quality images and sound.
Greater collaboration between pay-TV and OTT providers: The evolving consumer appetite for more on-demand and multiscreen viewing is transforming the TV market. As per the Pay-TV Innovation Forum, a research programme launched by NAGRA in partnership with MTM, Asia Pacific’s OTT video industry is developing rapidly, with around 100 million people subscribing to online video services in 2015. As such, pay-TV providers will have to further embrace all things OTT, including enhancing their core TV service with OTT partner offerings or integrating OTT into their hardware and infrastructure. The increased OTT investments will broaden content options, resulting in happier subscribers, who will have more viewing choices.
TV User Experience (UX): Modern consumers are looking for a seamless, easy-to-use TV experience combining linear and on-demand viewing across all screens. Pay-TV providers will have to rise to the challenge to remain competitive. This includes providing a better integration of the technology ecosystem into a rich UX that delivers the same services on all screens.
More flexibility with personalisation of pay-TV packages and pricing offers: Contract obligations for large channel bundles are losing traction, and one-size-fits-all business models are no longer going to cut it. By leveraging OTT, pay-TV providers are adjusting their business models with new offers, including skinny bundles and a-la-carte options. This also includes more app-based services, stand-alone OTT and TV Everywhere offerings to connect consumers to the content they love.
Diversification into adjacent services: Service providers looking to strengthen their offerings will explore diversification into adjacent offerings, including dynamic data-driven advertising and smart home solutions (such as in-home security and automation). These new services will be driven by large telcos and service providers. In particular, for pay-TV providers that own broadband networks, data is just too big of an opportunity to not be explored. Further investments should be expected from advanced providers looking at leveraging their own network infrastructure to develop new monetization engines.
Taking a broader view on content protection: The growing trend of streaming premium live TV channels and 4K content over the internet is forcing pay-TV operators and content owners to revisit their content security policies. Simply securing content distribution over managed networks is not enough anymore. Controlling piracy with a holistic approach is the new normal. For service providers, this will mean expanding beyond protecting distributed content over any network to incorporating cyber-security media services and forensic watermarking into their portfolio. This will be a necessity to meet content owner requirements and sustain revenues.
Local and regional programming: While the market for global content remains strong, quality local and regional content will become increasingly important for providers and will serve as a key differentiator in an increasingly competitive market. The Pay-TV Innovation Forum research by NAGRA and MTM found that Asia Pacific is characterised by very high levels of cultural and linguistic diversity, with many consumers having a strong preference for content in a local language. As such, providers will be tasked with building a strategy that incorporates both local and global content in order to cater to the diverse customer base in Asia Pacific.
Source: Digital Market
We’re delighted to invite you to join us at the OTT Days in Singapore- a thought-leadership event for the future of OTT. You will hear from the people who are pioneering new strategies and partnerships and exploiting new market opportunities.
Across a half day, the OTT Days event in Singapore offers a free-to-attend summit that informs, inspires and connects members of the video, media and technology community with a combination of unique networking features and a high-level speaker program. Be inspired by industry thought leaders including; Vindicia, 24i Media, AWS Elemental, Diagnal and TiVo.
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Dec 06, 2017
Jan 16, 2019
We’re thrilled to see that our customer, NLZiet, an online OTT Platform in Holland, is experiencing a strong growth on connected TVs. The usage figures for NLZiet show that online viewing time on a connected TV screen increased by 30% in 2018.
With a viewing time share of 57%, the ‘good old tv’ has become by far the most important device for viewing online live television and video on demand. The 57% viewing time can be divided into 31% set-top box (Apple TV and Chromecast) and 26% smart TVs.
Recent studies already show that sales of tablets and desktops are falling. The fact that tablets and desktops are becoming increasingly out of favour is also reflected in the viewing behaviour of NLZiet users. Last year, the share of viewing time on desktops dropped to 19% (-30%) and on tablets to 14% (-22%). The share of viewing time on smartphones dropped to 9%, which is also influenced by the large growth in viewing time on set-top boxes and smart TVs. When streaming via an Apple TV and Chromecast, the smartphone is also often used.
“Viewers are increasingly taking their online viewing behaviour to the big screen,” commented Niels Baas, managing direvtor of NLZiet. “The current connected TVs and streaming devices make the new TV viewing easily accessible and offer a full-fledged and inexpensive alternative to a TV subscription’.
At 24i, we’re proud to work with innovative and leading OTT platforms like NLZiet. With a decade of experience in creating, designing and deploying video streaming applications for all devices, 24i is growing its client roster of leading properties like iflix, Globo, Tennis Channel, NPO, RTE, Fox Sports, Sinclair Broadcasting Group and many more.
Contact us today to learn more on how 24i can help you reach your audience across all devices and platforms.