Here is a mind-blowing fact – North American customers emerged as the largest consumers of over-the-top (OTT) video content globally. North America dominated the OTT market share in 20191 and by the end of 2020, the market revenues were about $49 billion2. This is expected to increase to $94 billion3 in the next five years, despite being a mature market.
Reasons for the surge in demand
The surge in demand is due to several reasons. One of the reasons is the high penetration of smart devices (smartphones and smart TVs) in most North American households. This compelled users to ‘cut the cord’ of cable TV, and transition to subscription-based OTT platforms. The US subscription video on demand (SVOD) is one of the most profound markets globally.
The pandemic also amplified the viewership of OTT video content4, with customers growing increasingly reliant on entertainment platforms to navigate the doldrums of the lockdown.
A mature market with growing competition
While it is quite evident that the US OTT market is a mature one, it has still not plateaued. With new OTT players such as Apple TV+ entering the market, the competition is only heating up. However, marketers should take comfort in the fact that new customers are still looking to add subscriptions to their collection.
The best time to reach new customers
It is widely observed that when there is a launch of a new show or season, the number of new subscriptions increase. This primarily happens in Q4, during the holiday season. However, announcements begin much earlier. It is therefore important for marketers to tap into the excitement created around the launch and run advertising campaigns in Q3.
Customers are constantly looking for new and interesting content to watch and are willing to subscribe to new OTT platforms. Marketers should intercept these interested customers at strategic touchpoints throughout their mobile journey to drive conversions. One effective way to reach this highly engaged smartphone audience is by running ads across unique on-device placements such as browser homepages, minus 1 screen, default apps, app stores, and more. These ads being non-intrusive in nature provide a good user experience and help consumers easily navigate to their favourite and popular websites.
Further, pushing the right message to the right audience and at the right time is also paramount to the success of the campaign. Native ads such as Notifications can be used to promote the launch of a new show or the release of a much-awaited season creatively to drive more subscriptions.
Choosing the right platform to advertise
These days, simply placing ads on search and social media platforms is not enough. In a saturated market such as OTT, advertisers are compelled to find innovative ways of reaching customers, away from the clutter. VEVE has helped several OTT brands extend their reach to over 70+ million daily active users (DAUs) via Android mobile handsets (OEMs), browsers and telcos, and skyrocket their conversions with its unique on-device placements and ad formats. With specific targeting options, creative and operational support, brands have managed to optimize their campaigns to ensure a high return on ad spends (ROAS). With VEVE brands have consistently seen a growth in the number of subscriptions of up to 20X and an average conversion rate of 1-2%.
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