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As consumption of over-the-top (OTT) content scales rapidly, how is it playing out in Southeast Asia specifically?
In a panel with DoubleVerify, Gavin Buxton, Managing Director of Southeast Asia at SpotX, joined experts from Omnicom Media Group, True Digital Group, Precision Lead, and DoubleVerify to share how to leverage OTT and connected TV (CTV) to successfully adapt to shifting consumer content viewership patterns in Southeast Asia.
OTT has become the most popular way for consumers to access premium content on demand. Reallocating media budgets and incorporating OTT platforms like mobile apps and CTV into the media mix has never been more important to marketers.
Here are some key takeaways from the panel discussion on how OTT and CTV fit into a modern TV buying strategy.
OTT attracts more attention but presents new challenges
OTT is set to grow even further in Asia as brands diversify their video strategy. However, with OTT, advertisers are often challenged by a fragmented market and the technicalities involved in delivery. By working closely with supply-side partners like SpotX, brands and agencies can ensure a smooth implementation process that minimizes the difficulties. Nevertheless, in order for OTT (and emerging CTV usage) to make strong headway into media plans, client education is key.
Addressing brand safety and ad fraud in CTV
As CTV is nascent in Southeast Asia, there are also challenges on the brand safety front. Brand safety is still in relative infancy in terms of validation and verification. For one, CTV environments do not support VPAID, which is often relied upon by third-party vendors in mobile and desktop environments. Advertisers can build strong relationships with trusted partners and buy directly from trusted media owners or device manufacturers to protect media dollars and ensure money is flowing to legitimate supply sources.
Due to its global growth and high CPMs, CTV is an attractive environment for bad actors. DoubleVerify detected over 500,000 fraudulent devices and over 500 fraud CTV apps in the past year. Currently in Southeast Asia, OTT is primarily consumed on smartphones rather than TVs, which offer more protection when it comes to fraud, including IAB initiatives like Open Measurement SDK and app-ads.txt. Advertisers will need to adapt their brand safety initiatives as CTV grows.
OTT and CTV will continue fast growth
The OTT market is set to grow exponentially in the next few years as the coronavirus pandemic has accelerated the pre-existing upward trend of adoption. Mobile will still lead the way in Southeast Asia, however, we expect CTV to become more mainstream — although it’s not likely to experience the growth rates seen in western markets.
As more users begin to adopt streaming platforms, the industry can also expect more competition between providers as they look to acquire more users. We also expect to see better integrations in terms of verification, and increased inventory availability to cater to greater demand.
Another area of growth is local content production. Brightcove published research reporting up to 70% of media consumption is local content, and the industry can expect providers to focus more resources on homegrown productions. Another key consideration will be ad-supported video-on-demand (AVOD) or hybrid models that are proving popular with more price-sensitive Asian consumers.
Finally, for advertisers who wish to explore CTV buying, it is important to keep expectations in check. CTV requires a different approach to targeting such as content or daytime targeting, and there are many resources out there to help. Expert partners like SpotX can provide guidance and help navigate the landscape to tailor curated packages that reach advertisers’ core target audiences and deliver upon the right objectives.
About the author
Doris Sun is the Marketing Manager, APAC at SpotX. She creates and executes the SpotX marketing strategy in one of the fastest-growing regions in the world. Based in Singapore, she started her marketing journey in the food and beverage and hotel industries before diving into ad tech. When not at work, you’ll find her planning her next travel adventure, food-hunting with friends, or attempting to be artsy with flowers, crafts, and cakes.