How OTT Media Companies Are Using Data-Fueled Technologies to Power Growth
Internet-enabled content delivery methods are transforming the way consumers access content. And as over-the-top (OTT) media services grow in popularity, advertisers are taking notice. OTT media companies seeking to increase ad revenue are implementing data-fueled technologies to make their products more compelling and to create competitive advantages. Let’s look at the opportunities that exist for today’s OTT media companies.
The Modern OTT Media Landscape
The widespread availability of high-speed internet and the proliferation of mobile devices, tablets, and smart TVs have fueled the rapid rise of OTT media platforms. Advertisers are seeking ways to target audiences precisely with relevant offers, and they’re partnering with platforms that give them the capabilities needed to do so. The OTT media industry outlook is positive, but competition is growing.
What is the OTT media industry outlook?
According to research by Mordor Intelligence, the OTT market was valued at $101.42 billion in 2020 and is projected to more than double by 2026. The exponential growth in the OTT market has allowed providers to pivot from simply offering an alternative way to access content to producing and licensing their own creative. Additionally, innovative pricing models and a focus on personalized content curation continue to drive the industry.
Data-fueled technologies are creating new opportunities
The effectiveness of traditional television and radio advertising is difficult to measure and impossible to personalize. In contrast, OTT media companies have the ability to offer advertisers precise ways to target and personalize their ads, as well as to measure performance. OTT providers using data-fueled technologies can easily track a customer’s actions on the platform, gathering massive amounts of data on visits, content preferences, downloads, and more.
Data Trends Influencing OTT Media
OTT media companies are leveraging data in transformative ways. Here are three data trends driving advances in OTT media advertising.
Media consumption habits are changing
Digital channels are quickly becoming the dominant way that people consume media and make purchases. Streaming on-demand content from mobile devices and smart TVs has become the norm. In addition, the internet is now a primary channel for both researching product information and buying goods and services. Valuable data is generated every time a consumer engages with an OTT platform in any way. This data can be packaged and offered to advertisers for more accurate targeting and measurement.
New data-fueled technologies are being developed
Against the backdrop of these changes in media consumption, data-intensive technologies have been developed that support and accelerate the trends. Advances in artificial intelligence have made it possible for OTT media providers to highly personalize suggested content to individual users based on their unique interests and patterns of consumption. Blockchain technology has enabled more streamlined and secure online payments, making it easier to complete online purchases. Consumers are generating unprecedented amounts of data thanks to a growing constellation of internet-enabled sources, including IoT devices, smartphones, and wearable devices such as fitness trackers and smartwatches. This abundance of data can now be stored and analyzed quickly due to advances in cloud storage and computing solutions, allowing advertisers to target individual consumers with highly personalized offers and to easily measure results.
Data privacy concerns are demanding action
As the amount of data collected from consumers has grown, concerns about how that data is used and stored have become increasingly urgent. Consumers are more aware than ever of how businesses are using their data, and lawmakers and government regulators have begun to respond, calling for increased industry regulation to protect consumer privacy. One of the likely casualties of this increased push for consumer privacy is third-party cookies. With this primary method of attribution threatened, advertisers will need to seek out new strategies for precise targeting.
How OTT Media Companies Are Using Today’s Technology to Power Growth
OTT media companies can benefit greatly from embracing modern, cloud-based data collection, processing, and analytics technology. Here are four ways today’s technology can boost revenue.
1. Accelerate advertising revenue
Advertising has become smarter and more personalized, helping to set new standards in data management, usability, and measurement in this new environment. Increasing the level of personalization on an OTT platform can lead to a significant boost in ROI from the ads that are presented to consumers on that platform. One example of a company working to make this possible is Experian Marketing Services. Experian uses data and insights to help brands have more meaningful interactions with people. Experian uses the Snowflake Data Cloud to resolve identity and enrich profiles. This capability helps its advertising clients to more easily identify their customers, uncover the most appropriate communication channels, and develop messages that resonate.
2. Secure PII with data clean rooms
Data clean rooms allow OTT media companies to securely share customer data with advertisers while maintaining consumer privacy. Data clean rooms facilitate real-time data, making it possible to execute person-level marketing without sharing personal identifiable information (PII) or compromising consumer privacy. Data matching between proprietary data and other data sources enables advertisers to identify high-value targets, lapsing customers, and opportunities to generate additional sales.
3. Acquire and retain subscribers
OTT media companies can increase subscription revenue by using data-fueled technologies. To deliver exceptional experiences, media publishers and entertainment companies need to deeply understand their customers. By aggregating data in a centralized platform with powerful processing capabilities, OTT companies can mine their data for customer insights. Audience analytics can be used to personalize marketing, guide recommendation engines, and more.
4. Data monetization
Consumer data is a valuable product that OTT media companies can sell to partner organizations. New data products can be launched on platforms such as Snowflake Marketplace, which offers an extensive collection of live, ready-to-query data sets. Consumer data is shared securely with robust safeguards in place to maintain consumer privacy.
Snowflake for OTT Media
The Snowflake Data Cloud enables organizations to overcome fragmented data and facilitate seamless and secure data sharing. When OTT media companies are able to gain a comprehensive, fully integrated view of their audiences, they are able to improve content and customer experiences while boosting advertising revenue. These data-driven capabilities allow advertisers and media companies to closely tie advertising spend to results and forecast the return on ad spend across various channels with greater accuracy.
See Snowflake’s capabilities for yourself. To give it a test drive, sign up for a free trial.