OTT has nearly 400 million users, forming a traffic gold mine. Can large-screen advertising become the next outlet for the living room economy?

With the rapid development of smart TVs in recent years, the proportion of the Internet in the living room economy has begun to increase.

At the same time, the OTT industry with smart TV as its core has also begun to attract more and more attention from capitalists. So far, advertisers, service providers and third parties are actively deploying OTT business.

According to data from CIBN's self-developed OTT large-screen advertising monitoring platform, the number of OTT advertisers has accelerated since the Spring Festival to mid-April, and the market has become more popular. In particular, in the three months from the end of January to mid-April, the number of advertisers displayed on OTT terminals reached 189, covering more than 15 industries.

Behind the data from the monitoring platform is the rise of a series of well-known OTT advertising platforms, and the hard work of advertisers such as Procter & Gamble, Unilever, FAW-Volkswagen and Dior, which have successfully brought new vitality to the OTT advertising business.

Today's OTT market can be said to be a high-value blue ocean market that has yet to be developed.

Large-screen advertising is growing in a step-by-step manner, and the vast resources have become the platform's advantage

Why can OTT, as a large-screen advertisement, stand out from PC and mobile advertisements?

On the one hand, since OTT advertising is a form of advertising developed based on Internet digital media, the reason why OTT advertising is so popular nowadays is inseparable from the high penetration rate and speed of Internet penetration in China. According to official statistics, as of the end of last year, there were 731 million Internet users in China, more than half of the total population and twice the total population of the United States.

Not only that, as the Internet plays an increasingly important role in the living room economy, it also provides new development opportunities for OTT advertising.

In this case, not only can consumers' stickiness to advertisements be improved, but the impact on the audience group is also more profound. Such a broad audience and strong traffic attraction are naturally the objects that advertisers are scrambling to seize.

On the other hand, the advantage of OTT large-screen advertising lies in the huge space resources distributed in the system layer and content layer. Not only can it be interacted through mobile phones and remote controls to enhance advertising effects and improve consumer conversion, but it can even quantify advertising through targeted delivery to achieve precise delivery to specific groups in designated areas.

Especially in the field of video on demand, OTT advertising is gradually showing a step-by-step growth trend, which is unmatched by the small screens of PC and mobile terminals.

OTT large-screen advertising has a bright future and will become a new direction for digital marketing

However, for advertisers, the advantages of OTT advertising are not just data advantages such as user base and precise delivery.

What is reflected by these data is that OTT large screens cover more people with high knowledge, high positions and high incomes, gathering a group of high-quality consumers for advertising communication, which helps brand information to gain better recognition and consumer conversion.

According to the "2016 OTT Advertising Value Blue Book", as of the end of 2016, the market share of OTT terminals has exceeded 200 million, covering approximately 367 million users. The daily power-on rate is approximately 50%, the weekly power-on rate reaches 54%, and the monthly power-on rate exceeds 70%. The average daily power-on time has reached 6.1 hours, accounting for 25% of the day.

The vast OTT user base also has enormous commercial value. Since 2015, the OTT advertising market has begun to emerge, showing new business opportunities. In just two years, the scale of OTT advertising has expanded from 200 million in 2015 to 970 million in 2016.

Nowadays, as the market prospects of OTT advertising become more and more clear, the scale of its marketing investment has always maintained a high growth rate. Therefore, OTT large screens will go hand in hand with PC and mobile terminals and become one of the main means for advertisers to conduct digital marketing.

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.