Until the late 90s, cable television was every American family’s obsession. Network television simply lacked the programs they wanted to see. You could only see good shows on pay television networks like HBO, MTV, Nickelodeon, and ESPN. Back then, many home viewers were so unsatisfied. Today, it’s simple to do with streaming TV. OTT is a streaming media channel that displays movies, TV shows, and pay-per-view programs online. OTT media bypasses cable, broadcast, and satellite television platforms. The best examples of this are Netflix, Amazon Prime Video, Hulu, and Hotstar. Here are some tips to help you maximize your OTT advertising revenue.
When OTT caught on, people started ditching their cable subscriptions to stream. OTT media has the following benefits:
- User-Friendly – All it takes to use OTT is a stable internet connection and a modem.
- Inexpensive – Viewers can access cable TV content on OTT for less than half the price.
- Accessible – No need to meet strict geographical requirements to get a signal.
- More Choices – With OTT, viewers can watch both local and foreign TV shows and films.
Statistics show that a quarter of the American population is abandoning their cable TV subscription for good. This mass exodus to the new media platform is happening not only in the U.S. but worldwide. In Europe, for instance, many households have started using OTT media. The industry’s estimated revenue by the end of 2020 already hits the $25 million mark.
Now we know how beneficial OTT is to viewers. It’s time we figure out how you can increase your OTT advertising revenue. Here are a few tips.
Have Proprietary Hardware That Comes with Inclusive Software
Having exclusive rights to produce devices that come with your service package shuts out competitors. Even if you offer the hardware at a low cost to attract more customers, you can still make a sizable profit. You can profit by providing exclusive support and maintenance to your captive sales audience. To make your proprietary hardware more appealing, have proprietary software to go with it. An online store, for example, can give your subscribers quick access to their favorite products.
Subscription Tiering and PPV Video Purchasing
The lack of flexibility is a very unappealing feature of many cable service packages. They often come with limited options so customers find themselves paying for channels they don’t watch. Customers are looking for an option that will give them the best value for their money. If you can provide them with this, they will subscribe to your services and most likely stay for the long term.
Subscription tiering and pay-per-view video purchasing is a more appealing pricing structure. Not only does it offer more choices and better value, but it also increases your revenue. Since OTT videos are viewable via an online video platform (OVP), it’s much easier to tier your subscription. Content owners can also customize their strategy to their viewers’ specific needs. Doing so allows them to show a unique set of programs and ads to each audience.
Consider Using Embedded Marketing
Also known as product placement, embedded marketing involves featuring a specific product in a show, such as a TV program or film. Here, you cut down on significant commercial time. You also present your product better by incorporating the advertisement in the production. Using your product in actual scenes gets your audience to associate it with their lifestyle.
When you decide to use this option, make sure to integrate the product into the program smoothly. Otherwise, it will only look awkward and out of place, and that could do your brand more harm than good.
Maximize OTT Ad Revenue with Customer Retention
There are plenty of other ways to increase customer retention apart from providing the best service possible. You want your biggest spenders to feel that you value them. Offering discounts and exclusive content is one way to do it. You don’t want to leave out new subscribers, either. If anything, you should impress them at the onset to make them stay with you for the long term. They will appreciate an excellent welcome deal. To encourage your new and existing customers to continue subscribing, create well-defined loyalty programs. They’ll most likely even refer you to their families and friends.
Master the Art of Targeted OTT Advertising
Previously possible only on the web, targeted advertisement is now becoming popular on television. It is because many modern-day televisions are internet-enabled. However, this new technology is still in its budding stage. Many streaming television service providers are new to OTT media. They have a long way to go to learn how to maximize its marketing potential. Online advertisers were quick to utilize targeted advertising using common internet-enabled devices. This means that you can also master OTT targeted advertising and earn more in no time.
It’s important to get an insight into your customer’s viewing behavior. Doing so allows you to improve your customer’s overall experience with your product or service. This way, you will know what they want to see and when they want to see it. Using a smart data technology stack allows you to collect and analyze data. From there, you can create targeted advertising. Tracking through connected TV and OTT doesn’t involve the use of the recently banned third-party cookies. Instead, it uses a first-party data subscription, which keeps you from invading your customers’ data privacy. The result is a smooth delivery of targeted ads and a guaranteed increase in conversions. This will allow you to maximize OTT advertising revenue.