The QuestMobile 2024 OTT Industry Research Report highlights a booming sector driven by the rise of smart TVs, evolving demographics, and the complementary dynamics between large-screen and mobile video consumption. With new opportunities in geographic penetration, demographic engagement, and marketing potential, the OTT landscape is reshaping how brands connect with audiences. This article explores the report’s key insights into the growth of the OTT market, its geographic and demographic expansion, and its evolving role as a critical advertising medium.
As of September 2024, active smart TV devices reached 278 million, representing a year-over-year growth of 1.8%, according to QuestMobile. Key seasonal spikes highlight the platform's value as a central hub for family entertainment.
February 2024 (Chinese New Year): Active smart TV devices peaked at 317 million.
August 2024 (Summer Vacation): Devices reached 295 million, reflecting their role in entertainment during family-centric periods.
Leading brands, such as Xiaomi, Skyworth, Hisense, TCL, and Haier, dominate the market. Their September active device counts stood at 57.3 million, 44.3 million, 39.8 million, 31.6 million, and 23.1 million, respectively. These figures underscore not just steady hardware penetration but also the increasing integration of smart TVs into daily life, strengthening their role as a household entertainment centrepiece.
Geographic and Demographic Penetration
Older Audiences:
Traditional mobile video platforms struggle with penetration among users aged 41 and older, who comprise only 30% of the audience base.
Large-screen platforms, however, are particularly appealing to this demographic, thanks to the immersive viewing experience of smart TVs.
Complementary Usage Trends
As mobile video app usage stagnates, large-screen platforms provide a counterbalance. For example, while Tencent Video, iQIYI, and Youku experienced declines in mobile app usage (down 9.4%, 16.9%, and 13.1%, respectively, year-over-year), their corresponding OTT apps—**Aurora TV, Galaxy Kiwi Fruit, and CIBN Cool Meow TV**—saw year-over-year increases of 10.9%, 1.9%, and 2.3%, respectively.
Geographic Expansion
Smart TVs have been instrumental in reaching audiences in lower-tier cities and rural areas, where mobile penetration is high but engagement with long-form video content has been limited.
OTT Usage: A Stickier Platform
OTT platforms are significantly outperforming mobile video apps in user engagement, with daily average viewing times showcasing their dominance in immersive content consumption.
In September 2024, CIBN Cool Meow TV led with an impressive 129.4 minutes per day, followed closely by Galaxy Kiwi Fruit at 126.8 minutes and Aurora TV at 92 minutes. In stark contrast, their mobile app counterparts, such as Youku, iQIYI, and Tencent Video, recorded daily average usage times between 59.5 and 73 minutes. This substantial gap highlights OTT platforms as the preferred medium for long-form, engaging content, cementing their appeal to advertisers aiming for deeper audience connection and greater brand impact.
OTT Advertising Trends
Fast-moving consumer goods (FMCG) and internet service platforms dominate OTT advertising, with leading brands like Coca-Cola, Meituan, and PepsiCo emerging as the top contributors. In some months, their combined share of OTT ad placements exceeded 10%, with Coca-Cola alone accounting for an impressive 8.8%. Seasonal and sports-driven events, such as the Paris 2024 Olympics, further amplified OTT's appeal, offering brands unparalleled audience aggregation opportunities. Custom large-screen advertising strategies during these high-profile events significantly enhanced brand visibility, solidifying OTT platforms as a prime choice for impactful campaigns.
Advantages for Advertisers
1. Immersive Display:
The large-screen format offers unparalleled visual engagement, creating a “lean-back” viewing experience ideal for storytelling.
2. High-Value Targeting:
OTT’s appeal among older and high-income demographics provides a unique opportunity for brands to target specific audience segments effectively.
3. Cross-Channel Synergy:
The complementary relationship between mobile and OTT platforms allows for integrated campaigns that leverage both reach and engagement.
The Evolving Role of OTT: Beyond Entertainment
OTT platforms are evolving beyond entertainment as smart TVs become central hubs in the smart home ecosystem, significantly shaping consumer behaviour. Smart TVs now act as multi-functional devices bridging entertainment with broader smart home features, serving as control centres that seamlessly integrate with smartphones and in-car screens for multi-platform experiences.
Additionally, the OTT content ecosystem is diversifying, expanding into music, education, and interactive applications, with music and educational content experiencing notable growth and attracting broader audiences. Further enhancing their appeal, AI-enabled TVs are revolutionizing personalization, cementing OTT platforms as indispensable in the future of home entertainment.
Looking Ahead: Opportunities in the OTT Sector
The QuestMobile 2024 OTT Industry Research Report highlights OTT platforms as the new frontier in digital video consumption, outpacing mobile video as growth slows. Their ability to engage diverse demographics and leverage immersive large-screen experiences positions them as essential for modern advertising.
For brands, OTT is now a vital component of the advertising mix, excelling in high-impact campaigns and targeted audience connections. As smart TVs become household hubs and AI-driven personalization enhances user engagement, OTT’s role in shaping the future of media and marketing is clear and limitless.
Ready to elevate your advertising impact? Contact us today to learn how your brand can harness the power of OTT platforms to drive growth and innovation.
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