Technological Innovations to Boost In-app Advertising Growth

1 October 2020: In-app advertising is advertisement shown in a mobile application in the form of banners, images, or videos at the bottom or top of an app. This is a form of promotion through smartphones in which the advertisements are combined into mobile applications. This is presently the growing form of mobile advertising in the market and has become a must for the marketers. Over the last decade, in-app and mobile advertising have been the divisions of digital advertising that have seen the fastest growth in technical invention. However, in-app mobile traffic is still just a small portion of the complete mobile traffic.

Banner Ads Sector to Dominate the Market 

On the basis of application type, the in-app advertising market is classified as rich media ads, interstitial ads, native ads, video ads, and banner ads. The banner ads sector dominated the market in 2018. On the other hand, the interstitial ads sector is anticipated to emerge as the fastest-growing sector over the forthcoming period. Interstitial ads are full-screen ads comprising of a video, image, or text that appears in transitions in a mobile application. These ads are associated with breaks or pauses in the content, they become less invasive and offer a more immersive involvement. The market offers an exclusive opportunity for dealers to reach users that are difficult to reach through traditional advertising stations. 

The most common category of in-app advertising is banner ads and it consists of animated or static media or images typically located in high-visibility areas on high-traffic applications. The main purpose of banner publicity is to support a brand and/or to lure visitors to the advertiser’s website cost-effectively and simply. Though marketers are now shifting to native ads and video ads to improve the quality of their publicity and increase their impact.

Market Insights

Companies are concentrating on the development and customization of combined advertising solutions comprising different categories of in-app ads to increase the reach of advertisement campaigns. Presently, the market is in the growth phase and existing companies are concentrating on providing creative and interactive advertisement models to expand their geographical presence, customer base, and product portfolio. 

In addition, as the interest in the in-app advertisement technology is growing, mobile marketing platforms and advertisers are bonding in order to regulate and design models to effectively target customers and efficiently measure and enhance advertisement campaigns. Promoters are also using real-time data to improve the effectiveness of their ad campaigns.
Leading players in the in-app advertising market are Google Ad Mob; Tapjoy, Inc.; BYYD Inc.; Glispa GmbH; Flurry, Inc.; Tune, Inc.; InMobi; Amobee, Inc.; Chart boost; and One by AOL; among others.

STBs Delivering HD Content Quality Offer Enhanced Resolution of Video Content

A set-top box (STB) is a device intended to receive, decode and, display the digital signal on television. Various types of STBs include satellite cable, Internet Protocol Television (IPTV), Over the Top (OTT), and Digital Terrestrial Television (DTT).

Many STB devices are built with two-way communication facility. These devices include interactive features such as adding premium channels directly from the device or using internet.

Demand for HD Quality Content to Boost Adoption

Based on content quality, the STBs can be categorized into standard definition (SD), high definition (HD), and ultra-high definition (UHD)/4K. Demand for STBs with capability of delivering HD content quality will on the rise in the coming years. The HD devices are being extensively preferred over the SD devices and likely to follow this trend during the forecast period. STBs designed to produce HD quality content can offer greater resolution (over 1080 pixel). STBs delivering HD content quality offer enhanced resolution (over 1080p) of video content. It can also deliver better audio output with the surround sound. Many leading motion picture and sport production companies are preferring to provide only HD content.

Furthermore, many service providers across the world are introducing STBS with capability of delivering Ultra HD (UHD) and 3D content. Growing popularity of 4K TVs is also expected to increase the acceptance of 4K STBs in the coming years. For instance, recently, Huawei and Dolby Laboratories, Inc. launched Huawei Q22 set-top box. This is the IPTV set-top box, which supports Dolby Vision high-dynamic-range (HDR) technology. The device is intended to provide enhanced experience in music, gaming, broadcast, and other fields.

Market overview

According to a report published by Grand View Research, Inc.; the global set top box (STB) market is expected to reach a valuation of around USD 29.78 billion by 2024. Innovation in digital broadcast technologies coupled with intensifying demand for greater quality audio and video contents can boost the market from 2014 to 2024. In addition, growing adoption of analog TV to digital TV as a result of strict implementation of digitization can have positive impact on the market. Increasing demand for interactive digital entertainment services is also expected to bode well for the market.

North America is likely to display steady growth over the forecast period. Strong demand for 4K STBS and launch of numerous HD channels in the region are expected to drive the regional growth. On other hand, Asia Pacific was the leading region and likely to follow same trend over the forecast period. This can be credited to presence of government regulations to mandate cable digitization.

Some of the leading companies operating in the market include Cisco Systems, Inc.; Samsung Electronics Limited; Amazon.com, Inc.; Huawei Technologies Co. Ltd.; and Amazon.com, Inc.

Over-The-Top Devices and Services for High Quality Content Broadcasting

Over-the-top (OTT) devices and services find applications in broadcasting of text, images, audio, and video over the internet. These devices are also used in broadcasting, entertainment, education, and other businesses.

OTT Services Explained

Over the top devices generally include mobile devices such as smartphones and tablets, computers, set top boxes, gaming consoles, and smart TVs. Services may include different types of applications that are run through the devices. For example, internet TV or instant messaging services are being offered by WhatsApp, a third party instant messaging and video calling mobile applications owned by Facebook. OTT service providers worldwide are offering several free as well as paid services. They are generating revenue with the help of paid advertising model.

Exploring AVOD

Video On Demand (VOD) offers users the facility to select and watch or listen to audio and video content of their choice. Consumer can opt for TV shows or movies instead of watching live broadcasting. Advertising Video On Demand (AVOD) is an emerging business model, especially when consumers are looking for premium content. In this model, consumers are free to watch videos, so ads will be appear while watching a particular video. AVOD has adopted an automated real-time advertising model to serve the most suitable ads for the targeted consumers.

Market Overview

According to Grand View Research, Inc.; the global Over-the-top (OTT) devices and services market is projected to attain steady growth over the forecast period (2014 to 2025). Rising adoption of mobile devices like smartphones and tablets and technologically advanced devices like smart TVs and set top boxes are anticipated to propel the growth.

Additionally, high demand for VOD, AVOD, Subscription VOD (SVOD), and Transactional VOD (TVOD) may generate high revenue in the near future. AVOD is estimated to gain high revenue share during the forecast period. This growth is associated with increasing adoption of high speed internet services like 4G and fiber broadband.

However, different government policies across the world as well as unstructured revenue models of OTT devices and services providers can hamper the market growth.

Some of the leading companies working in the market include Apple Inc; Google Inc; Hulu; Roku, Inc; and Netflix.

Read more at:

https://www.grandviewresearch.com/industry-analysis/over-the-top-ott-devices-services-market

OTT Devices and Services: Creating A More Personalized Viewing Experience

Over the top (OTT) devices and services have changed the way we consume content. So much so, that OTT streaming devices are now known to be the fourth most common in-home access point to the Internet, after desktops, smartphones, and tablets.

Major media brands now have the benefit of using OTT services to target viewers at a person-level, going beyond household-level. Platforms such as Amazon Fire, Amazon Alexa/Echo, Apple TV, and Roku are some of the most not able examples of OTT delivery systems that offer consumers a widening range of channels.

The Basics of OTT

OTT is a media distribution service that delivers TV and film content such as audio/video, text, VoIP (Voice over Internet Protocol), and other media via the Internet without user subscription to satellite pay-TV or cable service.The reason why OTT services are so compelling is that they offer cheap, flexible, and one of the best viewing experiences in the field.

Major business models of OTT services are Subscription Video on Demand (SVOD), Advertising VOD (AVOD), and Transactional VOD (TVOD). 

- SVOD

It is a type of service wherein the user can gain access to services through monthly/yearly subscriptions. The major benefit of these services is that the user can subscribe as well as unsubscribe at any point of time. The best example of SVOD services would be Netflix.

- AVOD

AVOD is a free yet least explored OTT service. In this, the user can gain access in exchange for watching all the displayed ads, instead of paying money. An example of AVOD can be YouTube.

- TVOD

TVOD services generally do not charge anything for creating a user profile or for signing up; instead, users will only pay based on the content they watch. These services offer attractive packages on select content to retain customers. They have been in the industry for a long time, but only through set top boxes (STBs) and not as a complete OTT service.

Demand for Best-quality Picture

Right from the start, the demand for OTT devices and services has grown much faster than expected, thanks to the increased availability of 4k (Ultra HD) movies and TV programs. To cater to the demand for better and higher-quality videos and pictures, the adoption of 4k set-top boxes was once the rage. However, users in this digital era expect quick access to these videos in TV-like visuals on devices of their choice, mostly smartphones, tablets, or other connected devices. Thus, companies in this industry are constantly innovating new technologies to meet changing consumer needs.

What’s New in OTT Devices and Services?

- comScore OTT Intelligence: A Breakthrough Service Measuring OTT Viewing on TVs

comScore, Inc. recently presented comScore OTT Intelligence, a syndicated service to measure OTT content viewing on TVsin the U.S. household. This service is based on their ground breaking research platform called Total Home Panel, which measures user behavior across home network-connected devices.

- Sports Illustrated (SI) Network by Time, Inc.

Another innovation in the field is the newly launched SVOD by Time, Inc. called SI Network. This new network will offera mix of documentaries, talk shows, and narrative programs under the tagline “Because you love sports. ”It will offer 130 hours of on-demand viewing and will also include original documentaries and insights from key SI reporters who cover a wide array of sports, the company said.

Increasing Affordability of OTT Devices and Services

A recent study by Grand View Research, Inc. finds that the value of the global OTT devices and services market may cross USD 165 billion by 2025. Growing popularity of OTT content due to increased affordability and trend of offering personalized user experience are key factors driving its adoption. Growing user reliance on mobile devices like smartphones and tablets and rapidly evolving consumer electronics like smart TVs will also have a major impact on the up take of OTT devices and services

According to industry experts, OTT will be a lot like conventional TV; only related components such as user experience/interface and content discovery will keep evolving. The industry still has a lot to look forward to over the coming years as TV consumption keeps on changing. Advertisers or media companies will keep innovating technologies and products to stay in the race.

In-Depth research report on OTT Devices and Services Market:

http://www.grandviewresearch.com/industry-analysis/over-the-top-ott-devices-services-market