Seize These OTT Advertising Opportunities Right Now

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Much has changed in the over-the-top (OTT) landscape. Since its existence over a decade ago, it has successfully ushered a multitude of subscription and ad-supported video-on-demand opportunities. It has also become a primary mode of advertising strategy that is currently shaping the industry. Due to this, as much as 60% of advertisers are committed to funnel much of their resources on advanced TV, mainly because OTT helps them reach out to a broader market, as reported by the Interactive Advertising Bureau (IAB) in its Executive Summary.

In this post, we will share some insights into various opportunities and challenges that OTT advertising is bringing for advertisers and publishers.

 

Opportunities in OTT Advertising

Dynamic Ad Insertion

Advertisers can find value by identifying the channels where most of their consumers spend their time and money. Staying updated on media consumption helps advertisers identify channels in which they can monetize. Right now, consumers are paying more for online streaming services and access these through their mobile phones, and this impacts OTT advertising significantly. That said, OTT advertising should focus more on providing the best user experience possible for their target market.

Monetizing OTT means leveraging the use of dynamic ad insertion, which can ultimately lead to providing the best user experience. Dynamic ad insertion allows advertisers to exploit audience insights via a modern video ad server, making their ads more targeted for each viewer. As a form of programmatic advertising, OTT advertising allows users to access contextual ads in real-time.

Such a strategy is a win-win situation for both advertisers and publishers as they can benefit from the piqued interest of their consumers.

 

Accurate Audience Targeting

OTT advertising allows advertisers to get their hands on relevant consumer data. With it, they can better target their audience by using the device IDs. These device IDs are unique for each device, which means gathered consumer data is accurate. Once they have these IDs, it would be easier for advertisers to monetize their strategies. Some of the parameters that advertisers can use include geolocation, device usage, channel, and interests.

While OTT advertising opens up opportunities for advertisers and publishers that are not commonly offered by regular TV advertising, it does come with a set of challenges. And these must be addressed before it would be safe to say that OTT advertising would become the advertising medium of the future.

 

Challenges of OTT Advertising

Difference in Functionality

One of the main challenges of OTT advertising is addressing the gap in functionality. Unlike running an online ad, it is easy to assess the information based on the tracking insights, which can give you deeper insights into the conversion rates of a specific ad source. For OTT devices, it is impossible to do because each one has its own set of metrics. While services like VPAID can fill the gap, some OTT platforms still run into issues about implementing executable ad units.

 

Measurability

While OTT advertising can effectively zero in on target audiences, measurability is still an issue. Many advertisers are still encountering problems on how they can accurately measure the effectiveness of their campaigns. Since the ads go through the service providers, there is no direct management of the ads, and measuring performance metrics can be quite tricky but possible through the application of programmatic OTT.

 

The Final Say

These opportunities and challenges outlined here highlight that indeed, OTT advertising is making headway into the industry, mainly that the leading OTT players like Netflix and Hulu are riding in on the trend. Pretty sure that the opportunities that OTT advertising provides can easily overcome the challenges, as collaborations and technological advancements continue to evolve as well.

Do you want to know how AlgoriX can help you seize OTT opportunities? Contact us and our experts will be happy to assist you.

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Pranav Kataria

Associate Director, Programmatic Strategy

As the Associate Director of Programmatic Strategy, Pranav brings over 8 years of experience in the adtech industry working with Publishers, DSPs, Agencies, and Advertisers from global regions to improve their monetization, performance, and strategies. With great understanding of the mobile market, his expertise lies in analytics, account management, strategy, and ad sales. With this refined skill set, he brings customer-centric mindfulness that enables growth and innovation.

Before joining AlgoriX, his keen business perspective and skills have earned him opportunities to work across different organizations and verticals in the advertising ecosystem; be it improving the processes, sales enablement, and managing client relationships.

Ray Xia

VP, AlgoriX Partner Studio

Ray Xia was a mainstay at Tencent Games, having worked at the company for 13 years. There, he took on various roles including backend developer, application development manager, and game producer. During this time, he actively participated in the development and operation of popular titles such as QQ Pet, QQ Pet Fight, and games involving the Naruto franchise. To date, these games have over 10 million daily active users. Through this rich well of experience he has accumulated covering all aspects of game development and operation, he aims to spearhead more creative endeavors via AlgoriX Studios.

Naomi Li

VP, Research and Development

Naomi Li has a decade’s worth of experience in research and development for the adtech industry. She started her career at Baidu where she was mainly responsible for the Automation Testing of the Baidu Fengchao Ad Search Engine. There, she focused on the fields of overlapping experiment infrastructure, rich media ads rendering, and ad antispam technology. Moreover, as part of Baidu’s International Group, she led the research and development of various monetization and advertising mechanisms for Baidu’s overseas app store, SDK, and AdNetwork. At present, she is responsible for the overall direction of AlgoriX’s R&D efforts, which include product planning, technical architecture design, and talent training.

Frederic Liow

SVP, Revenue Growth & Strategy

A veteran in the digital advertising industry, he began his career during the early days of the dotcom era. To date, his passion for the digital industry is still as strong as ever (and getting even stronger). Spanning twenty years of his digital career, he has worked for leading companies like Nielsen, MRM McCann, Omnicom Media Group, Millward Brown and Smaato. Currently, Frederic is the revenue officer for AlgoriX spearheading global revenue growth, business expansion and strategic partnerships. He has set up and built AlgoriX’s global mobile ad exchange, hiring talents, establishing best practices, and injecting global industry standards into the company. Prior to his current role, he was the Head of Demand for Smaato, overseeing the demand business and operations in APAC. Frederic is currently based in our Singapore HQ.

Xinxiao Guo

Chief Operation Officer

Equipped with a decade’s worth of experience in global product operation as well as a deep understanding of emerging markets, Xinxiao brings her expertise in mobile traffic monetization and programmatic advertising to the table. Before her role at AlgoriX, she was a core member of iQIYI’s research and development unit. After that, she moved to Baidu as Head of Programmatic Advertising.

At present, she is AlgoriX’s co-founder and Chief Operation Officer. Together with the team, she aims to help game developers effectively reach global audiences and implement better monetization strategies.

Ruiz Xie

Chief Executive Officer

With nearly 20 years of business experience, Ruiz Xie founded AlgoriX with the vision of creating a global advertising platform and entertainment ecosystem. Through AlgoriX’s services, he aims to create a more inclusive tech ecosystem by providing customized solutions that meet the needs of businesses at every stage. At the same time, through AlgoriX Studios and its third-party partner studios, the company is currently bringing to life a greater goal of providing a comprehensive entertainment platform for people worldwide, which covers games, IP, comics, movies, and more. At present, he leads nearly a hundred employees with concrete plans to expand the company by establishing more offices worldwide.

Before founding AlgoriX, Ruiz Xie joined CoreMail in 2002. There, he created the first Ajax version of the mailbox in China for NetEase, which was the largest Internet company in China at the time. After that, he joined Tencent in 2005 and contributed to the creation of Tencent Games while also building a large scale distributed storage system. In 2013, he moved to Baidu where he took part in developing Baidu International’s overall architecture and search advertising system. During his tenure, he was also the Chairman of the Baidu Global Technical Committee and Baidu’s chief architect.