CONTENT viewing experiences have seen a significant shift in recent years, with consumers flocking to over-the-top (OTT) platforms that provide a wide range of entertainment at one's fingertips.
According to the OTT Is for Everyone report OTT has reached critical mass in the Asia Pacific (Apac) region with an estimated reach of 392 million viewers, larger than the total population of the United States.
Entertainment lovers in Apac spend more than two hours a day consuming OTT content. Streaming entertainment is viewed more regularly than traditional linear TV among audiences aged 16-34, an age range at which we typically form long-term brand loyalties through positive association.
It signals to advertisers that OTT platforms are the next frontier in reaching and building relationships with audiences more effectively.
What sets OTT advertising apart from other ad avenues is its innovative and creative approach to inserting brands into a consumer's lifestyle, offering a more seamless and immersive brand and product experience. Brands also find that advertising on OTT platforms presents an effective way of testing the market with new products and services before rolling them out to a wider audience.
OTT platforms like iQIYI offer scalable, measurable, and data-driven targeting ad solutions by providing precise exposure on the platform. As the largest Freemium OTT in 2021 in terms of downloads, iQIYI offers a hybrid strength of innovative ad solutions and strong premium content production capabilities, standing out from other purely SVOD or AVOD platforms.
In fact, OTT viewers embrace ads in exchange for free content on demand. According to Trade Desk's The Future of TV report, a total of 94 per cent of young millennials and 89 per cent of GenZ audiences are more open to ad-supported content, while 86 per cent of Malaysians are open to watching two or more advertisements in exchange for one hour of free content.
This suggests a new future for advertisers to boost awareness and build greater brand recall by positively associating their products with content and emotions that viewers opt-in for. This, in turn, creates a powerful connection between consumers and brands, enabling more successful sales conversion.
This new way of consuming content via OTT platforms is set to pave the way for creative advertisers to not only better reach and engage with consumers, but also drive conversion and build stronger brand affinity among audiences.
Freemium OTTs are able to curate brand experiences that leverage on various story-telling and ad-targeting means. A recent example is iQIYI's launch of its first local original drama, Rampas Cintaku, in partnership with Grab, a homegrown champion and the region's superapp leader, to further enhance the lifestyle benefits for discerning customers who look for sophisticated experiences.
Brands seeking for a more immersive brand integration can look to the upcoming iQIYI original series, Sorry Naik Lori, in partnership with foodpanda, where they go beyond the product placement and instead integrate the life of the foodpanda drivers as part of the main story. This not only allows the brand to receive exposure but also educates viewers on foodpanda's services and offerings in a more organic way.
OTT unleashes the creativity of both storytellers and advertisers. Freemium OTT leaders look to unlock more business opportunities in partnership with brands that are looking beyond the means of traditional advertising. Together, we look forward to a new era of branding with meaningful and desirable presence.
*The writer is iQIYI country manager for Malaysia, Singapore, and Brunei