We have a promising future for Over-the-top, or simply knowns as OTT. The entry of OTT into the mainstream content delivery industry has transformed consumer experience in a big way. Consumers are getting new and exciting ways of tuning in to their favorite video content across different categories ranging from sports, movies, news, and much more.
The advent of OTT has dramatically transformed how we watch what we love. Thanks to OTT, it has never been easier for streaming content. We get it wherever we have an internet connection – on our phones, tablets, personal computers, or connected TVs (CTVs).
The future of OTT promises to revolutionize not only the way we consume video entertainment but also the way advertisers are able to reach us through what we watch. Read to have a clear picture of the future and predictions of OTT in the content delivery industry.
Creation of More Local Content
According to an article by IAS Insider, experts believe that the future of OTT envisions an increase in the production of local regional content by regional OTT players. With OTT becoming a popular platform for consumers to access content, the market segments are increasing rapidly, thus prompting OTT players to produce local content that meets the needs and preferences of these markets.
The need for custom-made content offerings is growing and with it comes the need for the production of more local content. For instance, 60% of global OTT viewers are in the Asia Pacific region. And that is why OTT players are putting in more resources to produce local content to give the consumers of those regions what they need for entertainment and informational purposes. Therefore, OTT players will look into the future. It takes advantage of the need for more local content to expand the popularity and reach of OTT.
Ads Will Become Even More Localized
Local OTT advertising, where viewers are shown ads for businesses and services based on their geographic location, has been experiencing massive growth. Whereas linear TV can only target their ads geographically based on a market zone, OTT channels can offer geographic targeting based on viewers’ IP address location, and even by using the location data from their devices.
This pinpointed strategy enables advertisers to make their ads far more effective. And the performance-based pricing schemes offered on ads delivered over OTT will make them only more appealing to marketers in the future of OTT.
Advertising Shift Towards OTT By 2025
Advertisers are seeing viewers switch from traditional platforms to OTT. By 2025, it’s estimated that advertising spending on OTT will reach $2.37 billion, up from the current spending of around $990 million.
Linear TV still enjoys a majority share of advertising spending. However, as more people are ditching their set-top boxes and satellite cable TV connections, so are the advertisers. In a survey conducted in a webinar by BIA, “All Eyes on OTT—Breakout Media Category in 2021”, 41% of the respondents said that they increased their ad spends on OTT platforms, as compared to 26% who increased their ad spending on linear TV.
Livestreaming Will Get Even Bigger in the Future
Linear TV broadcasting is on its way out, even for live content. Instead, viewers are tuning in to live OTT broadcasts on social media and streaming services. Fast Company reported that in 2020, 1.3 million US households canceled their traditional cable or satellite TV subscriptions, while some live streaming services saw their subscriber bases explode by over 300%.
Live OTT broadcasts offer huge opportunities for advertisers. On social media, according to Socialinsider, these videos get close to twice as much engagement as pre-recorded videos. Given the rising popularity of streaming services, the future of OTT platforms will see more advertisers looking for opportunities to reach their audiences. This means the future will likely see more companies investing in streaming platforms providing live advertising opportunities.
The future of OTT is amazing. It brings us all of our favorite entertainment with greater ease and convenience than ever before. If you’re in the industry, now is the time to be producing your best content. And offer the best user experience you can. The competition will be intense. But the rewards of highly-effective advertising and unbeatable access to audiences will be better than ever before!