OTT: A New Perspective for Video-First Brands

The OTT revolution has sparked innovation and excitement for media brands, technology companies, and consumers across the industry and is continuing to grow at a rapid rate.  In fact, according to a recent Digital TV Research report, “Global OTT TV and Video Forecasts “, online TV episode and movie revenues will reach $167 billion in 2025 driven by the consumer’s shift to AVOD and SVOD OTT services.  Also, the COVID-19 pandemic has accelerated the adoption of OTT services as consumers are looking for binge-worthy content while stuck indoors.   

A New Perspective 

OTT services are not only making consumers’ lives better, but it’s giving media brands greater control and visibility over how their content is performing while deepening the relationship with their viewers.  It enables brands to control the entire consumer experience, which is the key ingredient in the adoption, conversion, and retention of viewers.  Having this level of understanding and control has never been possible before, and it’s a game-changer for video-first businesses.

Controlling the Consumer Experience

Controlling the consumer experience is essential if brands want to stay relevant in the future.  From tracking engagement of a specific piece of content to understanding how viewers interact with the various TV apps, this new data enables brands to react to new patterns proactively.  While this can create new workflows for brands, this level of detail and understanding is a game-changer within the TV industry. 

Personalization is the Heart of Great Consumer Experiences

In 2020, personalization drives great consumer experiences. I recently stumbled upon an interview with Katrina Lake, founder of Stitch Fix. Although a completely different market than OTT, Stitch Fix’s origin story transcends the industry and hits the mark with personalized experiences for their customers.

Stich Fix’s origin story begins with a typical trip to the clothing store.  Traditional brick and mortar experiences aren’t anything to write home about, and this bothered Katrina.  Traditional shopping experiences are static, and the entire experience is impersonal. It’s hard to imagine anything needing to be more personal than shopping for clothes, and therefore, an opportunity surfaced.  

By leveraging web and mobile technology, Stich Fix seized on an opportunity to create a personalized shopping experience at scale, which has transformed how many retail brands are thinking about their in-store presentations and providing some services online.

So what do OTT services need to consider when they think about how to elevate the consumer experience?

A more granular understanding of viewer behavior is critical for providing personalized viewing experiences.  In fact, at Float Left, we’re betting big on this principle as we look toward the future and apps that will power the next generation of services.

Data is at the Heart of Personalization

To begin thinking about personalization and the consumer experience, we must start thinking about data.  Data is at the heart of personalized experiences, and without it, it’s not possible to understand and learn about viewer behavior patterns.  Having the proper analytics solution ensures that the appropriate events are being tracked and recorded for analysis.       

The bottom line? 

Data = personalization = great consumer experiences = more engagement = actionable information (how to make the service even better)

Smart TV… Apps

The primary vehicle driving this self-serving ecosystem is the TV App.  Stand-alone apps allow us to capture data, learn about viewer behavior, grow the audience, reduce churn, and provide the best service possible.  Here are a few examples of how service providers can learn and adapt to changing viewer behavior:

1. Avoid Static Screen Layouts. 

Over time, apps should understand user behavior and provide a selection of content right on the home screen that gives that viewer a “one-click-to-content” experience.  Having static screens is hoping to get lucky with what a viewer might want to watch, and that’s no way to manage the service.

 2. Content refresh. 

Keep the content on the home screen refreshed often.  The main content can be a mix of manually curated and personalized results.  Giving the viewer something new to look forward to adds to the engagement factor and will also give brands the chance to learn something new about a viewer.   

 3. A/B Testing screens, layouts, and thumbnails. 

Being able to test various designs, features, menu items, and other UI elements in real-time to determine what is working now vs. at the end of the month when the team is pulling apart analytics reports.  Even subtle things such as thumbnail images can impact how viewers respond to what’s on-screen.

Additional Syndication

Syndication services and stand-alone TV apps work together in providing a good consumer experience by always giving viewers what they want to watch at any time, in a variety of different ways.

TV platforms and services such as Roku, Amazon, Android TV, Hulu, Xumo, and Pluto TV have evolved rapidly and are always looking for ways to keep the audience engaged.  Over the past few years, these platforms have started offering syndication services in a traditional, linear manner, which mirrors how we all grew up watching cable TV. There’s something to be said about just turning on the TV and watching – it’s the lean back, TV experience, and it drives engagement.   

These services offer a wonderful compliment to their primary “owned-and-operated” OTT service, but should not be considered a stand-alone solution.  These services all work together to cast a broader net while marketing the service and should act in a coordinated manner in driving viewers to the apps.   

Final Thoughts

Successfully launching an OTT service requires careful coordination of activities through several phases.  Brands can certainly opt to rush to the finish line, but without the proper pieces in place, brands risk spending money on technology that doesn’t give them the ability to take full advantage of what OTT services can offer.  

With the proper infrastructure, brands can provide the TV experiences that consumers expect, while at the same time, future-proofing their brand as streaming services continue their rapid growth. 

–Tom Schaeffer, Float Left CEO