Living room big screen returns to the center of home entertainment, data will become the biggest gold mine for OTT marketing

It has become a global trend for users to return their attention to large-screen TVs.

As users spend more time at home, the Internet TV experience improves, and excellent film, television and variety show content emerges, these have jointly contributed to this global storm of user migration.

Living room returns to entertainment center

According to "the Gauge" data from Nielsen, a market research and data analysis company, the number of people watching streaming TV accelerated in June based on the upward trend, accounting for 33.7% of the total number of viewers throughout the day, and the total time traffic increased by 23.5% year-on-year, which is also the largest increase since the survey was conducted.

The emergence of this sharp growth in OTT traffic is still driven by content. The release of new seasons of Netflix's "Stranger Things" and "Ozark" has greatly increased Netflix's market share to 7.7%. Amazon Prime Video grew by 31.9%, with a market share of 2.9%; Disney+ grew by 22%, with a market share of 2.0%.

Data from new consumer research from international research firm Parks Associates, “OTT: Perception, Usage and Business Models,” shows that nearly 50% of U.S. Internet households have tried at least one OTT service in the past six months, and 78%, or 40 million households, have ultimately subscribed to at least one of these OTT services.

With the growth of users, the revenue of the OTT industry will also usher in a wave of climax. Digital TV Research predicts that by 2027, global OTT film and television program revenue will increase from US$135 billion in 2021 to US$224 billion in 2027, and it is expected to increase by about US$21 billion in 2022 alone.

Research from Media Partners Asia (MPA) shows that online subscription video on demand (SVOD) revenues will grow 19% to $24.6 billion in 2022, with China contributing 51% with revenues of $36.5 billion.

The trend of users returning to TV terminals has also led to the transformation of the living room returning to the center of film and television content. The Blue Dragon Film Festival, one of the three major film awards in South Korea, has begun to embrace the OTT market, and included 55 Korean dramas and 49 variety shows on TV platforms in the selection; China’s newly added "Internet Drama Distribution License" has allowed online dramas and online movies to have their own "Dragon Mark", and the formalization of OTT film and television has paved the way for the development of TV platforms.

Compared with smartphones and platforms, which have reached the peak of user scale, OTT is a blue ocean of traffic that has not yet been fully explored. The recently released "Mobile Application Operation Growth Insight White Paper" shows that as of December 2021, the scale of mobile Internet users in my country is 1.029 billion, and the proportion of Internet users using mobile phones to access the Internet has reached 99.7%.

Correspondingly, the "2021 Smart Screen Industry Development White Paper" shows that the number of activated smart TV users has increased year by year, and the growth rate in the second half of 2021 was stable compared with the first half of the year, with an increase of about 5.6%. CTR report data shows that the overall penetration rate of Internet smart TVs in China is 53.3%. In the context of the continued fermentation of the living room economy, smart TV users still have huge development potential.

OTT is still a marketing value gap

As the proportion of large-screen entertainment in the living room increases, the value of OTT marketing begins to emerge. According to data from TV measurement company TVision, the attention and visibility of advertisements on connected TV platforms continue to grow. In the first half of this year, the "advertising attention" of connected TV platforms was 34.5%, an increase from 31% in the same period last year. A similar trend also appeared in "advertising visibility", which was 64% for connected TV, a significant increase from 60% in the same period last year.

As mobile Internet traffic has peaked and OTT traffic continues to grow, it has become an industry consensus that the marketing value of large screens in living rooms will continue to be released, coupled with the fact that TV advertising itself has strong visual impact, is conducive to building consumer consensus space, and has good collaboration with small screens.

However, it must be admitted that the current value of OTT is still underestimated by brand owners and platform operators. The "2021 Smart Screen Industry Development White Paper" shows that OTT advertising revenue will reach 15.1 billion in 2021. However, the data also shows that the current per capita advertising revenue of the Internet is 634 yuan, but OTT is only 19 yuan, which still has 3,300% room for growth.

Of course, compared with outdoor advertising, traditional TV advertising, and mobile Internet advertising, OTT advertising is still a new thing for brand owners and the marketing market, and the value of large screens also needs to be explored and proven by the platform. Similarly, CCTV's total advertising revenue in 1993 was only 560 million yuan, and China's total online advertising revenue in 1998 was only 48 million yuan. The industry's recognition of marketing value requires time and the accumulation of cases.

The official take-off of TV advertising and online advertising all came from the effective measurement and quantitative calibration of advertising effects. In 1997, CCTV Sofres was established, and the authoritative statistics of ratings made precise advertising possible; in 2009, DSP was born, providing a platform for the effective purchase of advertising inventory and data support for scientific evaluation of advertising, becoming the driving force for the rapid development of China's advertising market.

OTT data will be the industry's biggest gold mine

As the time comes to 2022, how to prove the marketing value of large-screen TVs to brand owners and reshape the consensus of the advertising industry has become the most important issue facing the OTT industry.

In this regard, Coocaa Technology, the first unicorn company in the OTT industry, also gave the answer - "data". As the center of the living room, the smart home screen undoubtedly carries a wealth of digital advertising resources. However, Coocaa Technology believes that how to enable major companies and brands to grasp the trend of the rise of the living room through scientific methodology and measurement methods is a more valuable question.

Therefore, Coocaa Technology integrated, summarized, standardized, and calculated the scattered data from multiple parties in the OTT industry, and launched the native DMP (Data Management Platform) management platform by integrating its own full-scale behavioral data to meet the industry's refined requirements for advertising data, formulate effective delivery strategies for brand owners, and provide data tracking during delivery and post-effect review, making the entire advertising delivery process predictable, quantifiable, and reusable.

Coocaa Technology's native DMP is derived from its years of corporate data accumulation, and also benefits from Coocaa Technology's digital system construction and complete data asset management solutions. These advantages empower the native DMP, which can help the OTT industry generate new marketing models and enable new value.

Based on the native DMP platform, Coocaa Technology has established a dynamic "user engine" that allows various advertisements to be delivered based on the user's specific time-sharing characteristics, such as three months, two months, a week, a day, or even different time periods of a day. It can also perform minute-level scene recognition and switching based on the arrival and departure of different users, and even different viewing habits, to achieve more precise advertising delivery and enhance advertising conversion.

Not only that, Coocaa Technology has built the original DMP into an open, integrated and interconnected data platform. Combining this data platform, activity platform and marketing platform, the original DMP can accept third-party testing. For example, it uses the scientific testing of Miaozhen to solve the back-link monitoring and data island problems of OTT advertising. While using a new digital asset management method to solve the problem of product and effect integration in the OTT industry, it also establishes a feasible channel for large-screen marketing standardization and data transparency.

As TV screens return to being the main consumer terminal for video, OTT is gradually being recognized as a major part of the marketing platform. However, the current situation of underestimated economic value of the living room still needs to be fundamentally resolved after brand owners reach a consensus on the marketing value of OTT screens. The transformation of the OTT industry from wild growth to intensive cultivation requires more precise quantitative data platforms for advertising, such as Coocaa Technology's native DMP.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.