With the vast availability of audience data - from the service providers, media networks, advertisers, and national statistics agencies - TV service and content providers can now combine real-time analytics and ad insertion technologies to provide targeted, personalised experience to viewers at the right time. As we shift TV viewing from big to smaller screens (and with less patience), there will be more scrutiny of the type of ads we see. In the streaming world, the consequences of bad ads - those that are repeated too often or are context unaware - are likely to do more damage to the business than simply channel switching. With so many options, unsatisfied viewers are ready to unsubscribe existing service and never look back. This puts demand on brands and advertisers in reevaluating how to reach their audience cross-device, and constantly delivering advertising content that is relevant, timely and engaging.
We will also likely see more innovations on ad format, such as shorter, interactive ads and advertising with a purpose. For example, asking viewers to select a different ending, ability to instantly customise a product, targeting ad content based on recently watched items, device types, regions, or even if you have a dog. With some creativity (and commercial awareness), the implementation of ad insertion in combination with analytics technologies sees no boundaries.
3. Actionable analytics
A streaming service enables providers to establish a direct relationship and have conversations with their customers. For example, through requiring viewers to register or sign up for access, the service providers can begin to gather meaningful customer data and gain insights into engagement level, consumption patterns, and so on. Understanding the customer and how the service performs and is consumed is critical to manage the transformation and innovation of new concepts. According to IDC, by 2018, 35 percent of IT resources will be spent to support the creation of new digital revenue stream.
With growing competitive and margin pressures, the need for real-time, actionable data in the TV and content provider space has never been greater. Customer satisfaction and quality of experience become increasingly important measures to sustain growth, reduce churn, and monetise content and services. In 2016, we can expect analytics to play a more significant role in helping OTT providers to act smarter - by making informed business decisions and supporting a constant process of testing, learning and monetising new models and concepts. Here are some examples where specific application of analytics will be most useful:
- Identify the cause of streaming disturbances faced by a specific customer whether it is device, asset or network problem
- Understand content engagement by looking into how long viewers watch a certain asset in order to support content creation or acquisition decisions, or provide insights back to content creators
- Make quarterly market-driven priorities for the business by understanding the cause of customer churn, for example is it functionality, content or price?
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