The world of Over-The-Top (OTT) streaming has witnessed a rapid transformation in recent years, marked by password-sharing crackdowns with new players entering the market and evolving consumer preferences. In India, according to Statista, revenue in the OTT video market is projected to reach US$3,666.00m, and the user penetration will be 30.1% in 2023.
With more and more players striving to reach more audiences, storytelling has become a central theme in the OTT space.
Abhirup Datta, Head – AVOD Marketing, ZEE5, said, “OTT platforms have expanded access to a wider audience, leading to a greater focus on quality storytelling and deeper engagement. That has led to driving focus on content production, user experience, expansion into smaller markets, accessibility to premium content, localization of content, etc.; for business success/growth.”
He mentioned that this focus on engagement has led ZEE5 to curate a portfolio of exclusive titles in Hindi and regional languages, devotional content, and e-sports supported by brand campaigns. The brand aims to cater to a diverse audience by providing a wide range of content options.
He believes that the entertainment sector at large has always been dynamic as a direct-to-customer service. Therefore, it is a constant process of mapping industry trends, identifying consumer demands, improvising strategies, and engaging with viewers to cater to them effectively, irrespective of business formats.
Datta pointed out significant milestones achieved in the past year. The platform ventured into the cricket and esports arena, debuting with ILT20 and IESF Big Bang Asia.
ZEE5 also served as the exclusive OTT partner for streaming MumbaiCha Raja for the second consecutive year for streaming Live Darshan & Aarti on the platform.
Changing Consumption Habits
As technology advances and network facilities improve, OTT content consumption is undergoing a significant transformation. The proliferation of smart devices has created a connected devices ecosystem that empowers consumers to access OTT content wherever and whenever they choose, making content accessible to a broader audience.
Datta said, “On the consumption front, there has been a surge in demand from connected devices ecosystem and new age viewing experiences. It is growing rather rapidly with the advancements in technology coupled with better network facilities.”
According to a report, The India Smart TV and OTT Market size is expected to grow from USD 16.02 billion in 2023 to USD 36.97 billion by 2028, at a CAGR of 18.20% during the forecast period (2023-2028).
Indian households are undergoing a significant transition, with a notable shift from traditional TV sets to smart TVs. A primary catalyst for this transformation is the growing adoption of smart TVs and connected devices, allowing users to access OTT content on larger screens and enhancing their overall engagement with the platform.
“With the penetration of Connected TV, the advertisers have an option of targeting a different set of audience with a large screen experience,” added Datta.
He further highlighted that in-home viewing experiences, family entertainment, and seamless transition across devices/mediums are becoming an integral part of OTT content consumption, which is a huge impetus for the industry to grow further.
He pointed out that there is increased access to premium titles, and OTT brings comfort and convenience to its audience.
The growth of OTT in smaller markets is another noteworthy development. Highlighting the localization of content, Datta said, “OTT has grown tremendously in smaller markets as well, with content getting localized. The AVOD business has seen significant growth in tier II and III cities which has additionally helped in bringing digital marketers on board.”
Why do brands prefer OTT advertising?
With the growing content consumption and the increase in the market size of OTT, even brands are getting attracted to OTT.
In terms of ad spends, OTT is steadily gaining ground, especially owing to its reach across markets. As brands increasingly acknowledge the potential of OTT in their marketing strategies, we can anticipate a substantial surge in this trend in the future.
Datta highlighted that OTT advertising offers precise targeting, data-driven insights, and the ability to tailor messages to viewers, making it an effective medium to drive brand awareness, engagement, and conversions. This enables advertisers to reach their desired demographics effectively.
Advertisers are increasingly drawn to OTT platforms due to their ability to reach a highly engaged and diverse audience.
Datta highlighted several advantages of ZEE5's AVOD model:
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ZEE5 offers a vast and engaged user base, allowing advertisers to showcase their products or services to a wide audience. By crafting highly localized content that resonates deeply with diverse audiences, ZEE5 has built a strong presence in regional markets that the advertisers can leverage on.
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ZEE5's data-driven approach provides valuable insights into viewers' preferences and behavior, facilitating more effective ad placements. It allows users to access premium content for free, empowering audiences with choice. This model promotes content discovery, increasing the viewership of both premium and ad-supported content. Furthermore, it supports the growth of regional content, fostering a more diverse content landscape.
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ZEE5's AVOD model benefits advertisers by providing them a robust platform, while also enriching the overall content consumption experience in India.
In the competitive streaming industry, finding the right balance between AVOD and SVOD offerings is crucial. Datta explained that at ZEE5, both business models have shown remarkable growth in the past two years. While the SVOD model caters to premium customers, the AVOD model brings in revenue through advertisers.
Datta said, “The plan is to enhance and expand the AVOD portfolio to further augment its revenue potential.”
Additionally, ZEE5 is curating short-format festive content, showcasing TV actors preparing for the festivals, and launching new AVOD movie titles and web series during the festive season to keep users engaged and entertained.
With the festive season on the horizon, ZEE5 is poised to enhance its offerings further and engage audiences.
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