A new era has begun as OTT platforms are shifting away from their signature ad-free content towards a model more akin to Linear Cable, where ads are becoming commonplace. This shift benefits audiences who can now stream content at a fraction of the cost.
But that’s the story of the audience and OTT service providers. How does this impact advertisers—the brands spending hefty amounts to secure slots on streaming platforms?
The open internet, particularly OTT/CTV platforms, has become the go-to destination for premium content in India, with research showing a significant shift among younger users.
They are 27% more likely to choose OTT/CTV over social media for their favorite content. This trend is reshaping how brands approach advertising, with young adults perceiving ads on OTT/CTV as more premium than those on user-generated content platforms.
But here’s the catch—this surge in OTT/CTV popularity isn’t just about the content. Ads on these platforms are now viewed as more trustworthy, with over 40% of users trusting them more than social media ads.
Yet, while OTT/CTV might be winning on trust, the question remains: are these platforms truly delivering value for advertisers, or is this just another case of brands paying a premium for perceived prestige? After all, ad recall on these platforms is still outperformed by online gaming and music streaming, which have far better conversion rates overall.
Despite these pros and cons, the most determining factor is how OTT platforms present their ads. Audiences have become savvy enough to spot product placements, which definitely leave a mark. But what OTT platforms can do is ensure the ad experience isn’t insufferable.
To boost conversion rates, they should implement better algorithms that adapt to the audience’s preferences or the content they’re currently consuming. Quality over quantity, fans have been screaming that for ages and if they implement it in the ads, a magic formula is waiting for all three parties.