Module 1

Digital Marketing

Dr Somesh Kumar Sinha

Digital Marketing
Definition

What is digital marketing? (brainstorm)

“Digital marketing” is the process of building and maintaining customer

relationships through online activities to generate sales and/or capture
customers that are searching on the Internet for answers.
Digital Marketing
Why are people going online? (brainstorm)
Digital Marketing
Why are people going online?

For information on a new product, service or location

With the constant growth of the web, and more people getting connected
every day, digital marketing has become a necessity for many organizations.
This also includes small businesses that want to trade online and make a
name for themselves on the web.

The web is crowded with information. If you have a website,

how can these people reach you?
What are the benefits of digital marketing?
Digital Marketing
What are the benefits of digital marketing? (brainstorm)

Over traditional marketing *

Puts the consumer in control

Provides convenience
Drives brand loyalty
Reduces the selling cycle
Builds your brand
It is measurable
It is cost effective
Digital Marketing
Digital marketing objectives

One way to make sure you are found on the web is with an
optimized digital marketing strategy. Most digital marketing
strategies and campaigns have 5 objectives: (brainstorm)

1.Reach the right audience

2.Engage with your audience
3.Motivate your audience to take action
4.Ensure efficient spending on your campaign
5.Maximize return on investment (ROI)
Digital Marketing
What does digital marketing consist of? (brainstorm)

Key components

Website design (user experience)

Search engine optimization (SEO)
Pay per click (PPC)
Social media marketing (SMM)
Email marketing
Display advertising (banner ads)

Let’s look more closely at some of these key

components.
Digital Marketing
What is search engine optimization (SEO)? (brainstorm)

SEO definition

Search engine optimization (SEO) is the process of

getting traffic from the “free,” “organic,” or
“natural” listings on search engines.

All major search engines such as Google, Yahoo

and Bing have such results, where web pages and
other content such as videos or local listings are
shown and ranked based on what the search engine
considers most relevant to users. Payment isn’t
involved, as it is with paid search ads.
Digital Marketing
What is pay per click (PPC)? (brainstorm)

PPC definition

Pay per click (PPC) is a type of sponsored online

advertising that is used on a wide range of websites,
including search engines, where the advertiser only
pays if a web user clicks on their ad. Hence the title,
'pay per click'.

Advertisers place bids on keywords or phrases that

they think their target audience would type in a search
field when they are looking for specific goods or
services.
Digital Marketing
Advantages of pay per click (PPC)? (brainstorm)

 Very fast
 Get targeted visitors within hours (sometimes minutes)
 Can yield highly profitable results
 Great testing platform and can be highly targeted
 Time of day
 Geographic area
 Keywords and phrases
 Immediate feedback
Digital Marketing
Disadvantages of pay per click (PPC)?

No guarantees
Heavy competition
You pay regardless of any sales
Competitive keywords demand higher bids
Restricted to text and image ads
Traffic stops when you stop paying
Digital Marketing
What is Social media marketing (SMM)? (brainstorm)

Social media marketing

definition

Social media is a medium or

instrument for communication, like
a newspaper or a radio.

Social media = a social instrument

of communication.
Digital Marketing
Advantages of social media marketing (SMM)?

 Targeted traffic
 High return on investment (ROI)
 Does not require specialization or vast technical skills
 Ability to go viral therefore high visibility
 Cost effective (only time and effort)
Digital Marketing
Disadvantages of social media marketing (SMM)?

 More time consuming than SEO and PPC

 No short term ROI
 Everything is public
 Ineffective use = brand credibility loss
Latest Digital Marketing Trends
1) Artificial Intelligence
Artificial intelligence is the biggest commercial opportunity for
companies, industries, and nations over the next few decades” and “will
increase global GDP by up to 14% between now and 2030,” which means
that “AI latecomers will find themselves at a serious competitive
disadvantage within the next several years.”
• AI can analyze consumer behavior and search patterns, and use data from
social media platforms and blog posts to help businesses understand how
customers find their products and services.
• One exciting example of AI in practice is chatbots (more on that
later). Mastercard created a Facebook messenger bot – which uses natural
language processing software to decipher what the customer wants and
respond as if it were a real person to automate handling payments.
Latest Digital Marketing Trends
2) Programmatic Advertising

• Programmatic advertising means using AI to automate ad buying so you can

target more specific audiences.
• Real-time bidding, for example, is a type of programmatic ad buying. This
automation is much more efficient and fast, which means higher conversions
and lower customer acquisition costs.
• It’s changing the face of digital advertising so swiftly that, according to
eMarketer, 86.2% of digital display ads in the U.S. will be programmatic by
2020.
Latest Digital Marketing Trends
3) Chatbots

• Chatbots will continue to be an important part of digital marketing in 2020.

This AI-based technology uses instant messaging to chat in real-time, day
or night, with your customers or site visitors.
• Surveys show that:
– Top benefits of chatbots are 24-hour service
– Instant responses to inquiries
– Answers to simple questions
Latest Digital Marketing Trends
5) Personalization

• Consumers are highly annoyed with generic advertising blasts

• 80% say they are more likely to do business with a company if it offers
personalized experiences
• 90% claim they find personalization appealing
• personalized, triggered emails based on behavior are 3x better than batch-
and-blast emails.
• examples of the power of personalization - Netflix and Amazon, with their
tailored recommended products or movie titles.
Latest Digital Marketing Trends
5) Personalization

Here are a few other companies that are successfully using personalization today:
• EasyJet launched a data-driven email campaign that uses customers’ travel history
with the airline to build personalized stories, which then suggest where they might
like to travel next. About 12.5 million unique emails have been sent, which had a
25% higher click-through rate than non-personalized emails.
• Cadbury’s created a personalized video campaign that matches a Dairy Milk flavor
with users based on data from their Facebook profile, including age, interest and
location. The campaign generated a 65% click-through rate and a 33.6% conversion
rate, proving that the personal touch works.
• Starbucks uses a gamified mobile app that draws on data like purchase history and
location to get as personal as possible, allows customers to customize their drinks,
and encourages further use with its rewards system – which skyrocketed their
revenue to $2.56 billion:
Latest Digital Marketing Trends
6) Video Marketing

Video marketing is one of the most important marketing trend today and likely
for the next 5-10 years.
These numbers show the importance of incorporating video into your digital
marketing strategy in 2020:
– 70% of consumers say that they have shared a brand’s video
– 72% of businesses say that video has improved their conversion rate
– 52% of consumers say that watching product videos makes them more confident in online
purchase decisions
– 65% of executives visit the marketer’s website and 39% call a vendor after viewing a
video
– Video is by far the most popular way customers want to learn about new products.
Latest Digital Marketing Trends
7) Influencer Marketing

• Influencer marketing is a type of word-of-mouth marketing that focuses on

using key leaders to amplify your brand message to a larger market.
• Influencers can be well-known celebrities, but more often they are
Instagram or YouTube personalities with a huge niche following who can
help spread the word about your business or product through their social
channels.
– Because influencer marketing is generally more authentic than corporate
advertising:
– 63% of consumers trust influencers’ opinions of products much more than what
brands say about themselves
– 58% of people have bought a new product in the past six months because of an
influencer’s recommendation.
Latest Digital Marketing Trends
8) Visual Search
Visual search can take the user experience to a totally new level: People can upload
an image to conduct a search and get more specific results.
Latest Digital Marketing Trends
8) Visual Search
A) Pinterest Lens
Not surprisingly, Pinterest has jumped on the visual search bandwagon. They came out
with Lens, a visual search tool that allows users to take a photo of an item to find out
where to buy it online, search for similar products or view pinboards of related items.
As Marketing Land puts it, it turns your phone’s camera into a search bar.

B) Google Lens
Pinterest is not the only one with visual search. Google Lens is a visual search engine
by Google, which recognizes objects and landmarks through a camera app.

C) CamFind
Another visual search mobile app which enables you to search for anything from your
phone simply by snapping a picture.
New Business Models of the Digital Economy

• E-Business: The use of electronic technologies to transact

business.

• Collaboration: People and Organizations interact, communicate,

collaborate and search for information

• Information Exchange: Storing, processing and transmission of

information.
 Digital Business
Telecommunications Networks
Thin Client
PC E-Commerce Server STARS
On-line Busi nes t o Busi nes
Single-station Store Of fi ce Sui t e Server
Appliance Linux SSL
Linux Vi deo Conf erenci ng
SCO Unix
Server Unix
Sybase ASE Database
Appliance Tarentella
Server Net
Cold Fusion
Store 3 Appliance Wi nd ows 2 0 0 0
BeaconHill'sStars
Store 1
Apache Server
On-line Multi-station Store
IP Ad d r ess 2 Apache Server
Linux
Credit CardApproval
IP Ad d r ess 3
On-line IP Ad d r ess 1
Salesperson POS

Field Sales Your Domain/URL

Commercial Int ernet

Hub

E-commerce
Internet PC

In-house operations

PC
PC
STARS
Accounting
Phone Orders
Mail Orders
On-line Customers Order Fulfillment

Consumer Consumer &Business Purchasing Thin Client

Thin Client

In-office
The Strategic use of IT
The Old Economy – Taking Photo’s

1. Buy film in a store

2. Load your camera
3. Take pictures
4. Take roll of film to store for processing
5. Pickup the film when ready
6. Select specific photos for enlargement
7. Mail to family and friends
The New Economy – Taking Photo’s
• 1st Generation Digital Photography
– Old economy except 6 and 7 were replaced by using a scanner and
emailing
• 2nd Generation Digital Photography
– Use a Digital Camera, no film, no processing.
• 3rd Generation Digital Photography
– Your Digital Camera is now your mobile phone, in your
binoculars or a palmtop computer.
 Business Models

• A business model is a method of doing business by which a

company can generate revenue to sustain itself. The model
spells out how the company adds value to create a product or
service. (Value Chain)
– Nokia makes and sells cell phones
– A TV station provides free broadcasting. Its survival depends on a
complex model involving advertisers and content providers.
– Internet portals, such as Yahoo, also use a complex business model.
 Digital Age Business Models

• Name-Your-Own Price

• Reverse Auctions

• Affiliate Marketing

• E-Marketplaces and Exchanges

• Electronic aggregation (buying groups)

Drivers Forcing Changes In Business Models

Business Pressures
• Environmental, organizational, and technological factors are
creating a highly competitive business environment these factors
or forces can change quickly, sometimes in an unpredictable
manner.

Business Critical Response Activities

• companies need to react frequently and quickly to both the threats
and the opportunities resulting from this new business
environment. A response can be a reaction to a pressure already
in existence, an initiative intended to defend an organization
against future pressures, or an activity that exploits an
opportunity created by changing conditions.
 The Drivers of change

• Business Pressures on an Organization that force

change.
Technology

Market Society
 The Drivers of change Continued
• Business Pressures on an Organization.

Society Market

Technology
 Organizational Response to these Drivers

• Strategic Management & Systems

• Continuous Improvement – Operational Efficiency
• Restructuring business processes
• Manufacturer to order, Mass-Customization
• Customer Focus Strategy
• Electronic business
• Business Alliances

Technology is required to
effectively implement these
critical responses.
New Business Models of the Digital Economy
Sharing economy
“The Sharing Economy is an economic
model based on providing access to
goods and services rather than their
outright ownership.”
 Share

Close Sharing
Friends & Family
 Sharing Economy

Wide Sharing Traditional

Sharing Redefined
Strangers & More
By Technology Empowering Peers & Communities
 People People People

Employee to Freelancer

Company Sharing
Economy
Platform
Peer
Provider &
Consumer
Peer(Provider)
Proven Reputation and Responsibility
through the Platform Provider
TRUST AND SHARE
The MoreWe Share,The MoreWe Have

SHARE

VALUE
Economy Environment Society
The ‘shared economy’ includes segments such as co-working (Awfis,
WeWork India), co-living (Stanza Living, OYO Life, Oxford Caps), shared
mobility (Uber, Ola, Shuttl) and furniture rental (Furlenco, Rentomojo.)

As per the report titled ‘Shared Economy — India Story,’ with high mobile
penetration, high millennial concentration and an aspirational population, Asia
has the highest willingness to use shared assets.

The market size for the co-working sector is pegged at $500 million, while
that for co-living is estimated to be $400 million, shared mobility at over $630
million, and furniture rental at $200 million. The report noted that about $3.7
billion worth of capital has been infused in India in such services till now,
adding that a similar amount is expected to be infused in the next couple of
years.
 New Business Models of the Digital Economy:

Customer co-creation of products/services

Customer co-creation of products/services

In recent years many

companies have

?
experimented with getting
their customers actively
involved in their innovation
process. This type of
collaboration is called ‘co-
creation’.
 What is co-creation?

Co-creation is involving your customers or end-users in one or more

stages of the innovation process. After all, a profound insight in the
needs of your customers and users is crucial to create successful products
and services that create added value.

Co-creation is a real collaboration with your customers, by really

letting them share their thoughts and ideas about your future products
or services.

This could vary from involving your customer in the first stage of
generating new ideas, to involving them in the final phase of your
product or concept development.
Co-creation benefits

Co-creation has the following benefits:

• It makes your organisation more customer-oriented.

• It improves the relationship with your customers.

• It increases the success rate of new innovations.

Five types of co-
creation
1 Co-creation workshops

Specific users (preferably so-called ‘lead users’) are involved in

brainstorm sessions to generate ideas or involved in concept workshops
to enhance ideas. Co-creation workshops are especially suitable to gain
more insight in the needs of your customers or to find ideas that are
relatively easy to implement on short or middle long term.
2 Crowdsourcing
You define a question or problem for a large audience and offer a reward
for 'the winning idea’. The interaction with the customer is minimal, since
the ideas are developed by the customer themselves.
Crowdsourcing is applicable in three situations:

You have a concrete (technical) problem for which you want a

solution. A good example is the “Connect + Develop”
programme of P&G.

You are looking for inspiration through new ideas that

will expand your employees’ views. A good example is
Elektrolux, who annually organise a successful contest for
students.

You want to generate a lot of free publicity around an upcoming

product. You promise that the winning idea will be brought to
market. Examples are the HEMA design contest, and the T-shirt
maker Threadless who’s entire business model is based on co-
creation.
3 Open source

A (large) number of volunteers are actively involved in

development and maintenance of a product. Open source is often
applied with the development of software. It is very suitable if you
want to set a new technical standard.
Examples of successful products are Linux and Firefox. Also the
non- profit organisation Creative Commons stimulates this type of
co- creation with great success.
 4 Mass customisation

•Customers can design their own product within the framework you define. This
generally means that a customer can select different shapes, colours or
materials for the product parts. This makes him willing to pay a premium price
for the product. Mass customisation can accomplish a lot for your brand and
positioning, and it can turn your customers into ambassadors.
•Examples of successful products for mass customisation are NikeID and Lego
Factory.
5 User-generated content

Customers create their own ‘products’ that they share through your
system or platform. User-generated content is especially suitable for
digital products and services. If you can create the right platform, it
will spread rapidly and your platform can even become a brand on
it’s own.
Examples are YouTube, LinkedIn, Slideshare, Flickr and
the numerous blogs on the Internet.
Three critical success factors for co-
creation
1. Don’t be afraid to share information.
There is direct relationship between the amount and
the value of the information you share and the value of
it and the ideas you get in return.

2. Be honest to (potential) customers.

A customer can remarkably sense whether you are
telling truth or not. Honesty from your side will be
rewarded with honesty from the customer.

3. Be sincerely interested.
When a customer feels you are sincerely interested in
his or her opinion, every question will be answered and
you will have access to a wealth of information and
ideas.
New Business Models of the Digital Economy:

User Generated Content

User generated content refers to a range of media
which is produced by end users

Websites provide the framework by which users

are able to upload and comment a rage of media
Pictures
Videos
Music
Opinions
News
Gossip
Research
⦁ Giving people a voice
⦁ Business use- customer to customer business such as eBay
⦁ Providing them with a platform to share information across
cultures, borders and time zones
⦁ Connecting individuals with common interests
Blog
⦁ Sharing information -Wiki How
⦁ Privacy – particularly with social networking

⦁ Reducing the face to face communication

⦁ Content can be poor quality

⦁ Little or no moderation

⦁ Time waste
Freemium Models
 Freemium Models

The freemium business model allows users to

utilize basic features of a software, game, or
service for free, then charges for "upgrades" to
the basic package. It is a popular tactic for
companies just starting out as they try to lure
users to their software or service.
Types of freemium business model

Capacity How many?

Based (Dropbox)

Feature What features?

Based (Skype)
Freemium
For how long?
Freemium offers core Time Based (Shopify)
services or features for
free and charges for
more sophisticated Which
components. User Class Communities?
Based (Microsoft
Imagin6 e)
Industries and examples

• Records and saves your notes

• Selling subscriptions to and everything else you
recruiters and sales people who might want to remember

are particularly heavy users of • A service whose value increases

the site over time

• If you have three weeks of

• People pay to get contact info of recorded notes and memories,
and someone offered you $50
the person for recruiting bucks to delete them, you might
say yes. If you have three years
of recorded memories, that
• Pay to be listed at the top in might be worth as much to you
as your house
• recruiters search list
Industries and examples

• Referral program that gives • Helps people manage and

users free space for inviting send out newsletters
space
• Run out of free space-you're • One year after going
not going to move it all out - freemium, paying customers
going to pay up increased over 150% and
profit increased over 650%
• Cloud based – lower costs to
store –
greater the user base
Industries and examples

• It was started, the goal was to

out- Facebook by building a
• 600 million users who make social network of social
calls for free over the internet networks
• People preferred a generic social
• Small percentage of those pay network, and most people don't
to make calls to landlines - want to join a niche social
percentage is enough for a network
billion in revenue
• If your idea is smaller than you
thought it would be, premium
might be better than freemium.
Trends in online marketing
 What is eWoM?

“Any positive or negative statement made by

potential, actual, or former customers about a
product or company, which is made available to a
multitude of people and institutions via the
Internet” (Hennig-Thurau, et. al, 2007)
 Main Elements of eWoM

1) Statement: positive, negative or neutral

2) Communicator: statement creator (potential, actual

or former customer)

3) Object: product, service and/or company

4) Receiver: multitude of people and institutions

5) Environment: the Internet, social media

(Lindholm, 2009)
 Satisfaction

Customers need to be satisfied to remain loyal and make

referrals

Companies must exceed customer expectations to leave them

satisfied

eWoM is still relatively new which process to be a challenge to

companies

Many factors contribute to customer satisfaction

 Outcome
 Response
 Channel
 Positive vs. Negative eWoM

Positive feedback usually stems from customer

identification with the company
 In some cases they still aren’t fully satisfied
 Committed

Negative eWoM usually consists of concerns with

products or services
 Negative comments give firms the best opportunity to achieve
satisfaction

Responding to both types of feedback is equally

important
 Challenges with eWoM

Still new to firms

Consumers can post dishonest feedback

Some people will not be satisfied regardless

Online identities can easily change

Some issues cannot be solved online, which can

decrease satisfaction
 Digital-only companies

Many companies are operating completely on

online mode. They have innovative ideas to
execute at online mode only.

Google
Facebook
Thomson Reuters foundation
Mastercard
Digital Marketing Platforms
 Digital Digital
Marketing Marketing
Channels Platforms
Channel is a means of
communication. You could
Facebook a s a Platform, or also
Platforms are foundational.
use Facebook simply a s a
You build upon them, using
communication Channel.
the tools they offer to
implement your
communication strategy.
Social Media platforms
 Social
Media
Platforms

● Are tools for growing

networks and
relationship
● Can help facilitate
strong connections

Quote by Chris Marr, Content Marketing Academy

Facebook
Source: https://dustn.tv/social-media-statistics/
Facebook
● Facebook Primary Purpose: Builds brand loyalty and reputation.
Establishes your business a s an authority through interesting content
and informational posts.
● Unique Attributes: Reaches a variety of segments of an audience with
one post.
○ Offers opportunity to create ad s to drive traffic to your website/blog
○ Encourages dialogue and depth with a customer base
○ Ideal for sharing personal stories, testimonials, detailed information
about your business
● Average Age Range of Users: 25-45 years old
● Gender of Users: 60% female, 40% male
YouTube
Source: https://dustn.tv/social-media-statistics/
Instagra m
Source: https://dustn.tv/social-media-statistics/
 Instagra m
Instagram was created Mike Krieger and Kevin Systrom in 2010. It was mainly meant to enable
sharing of pictures and videos, both publicly and privately. When Facebook acquired Instagram for
$1 billion in April 2012, the photo-sharing app had about 27 million total registered users.

Instagram Statistics
● Instagram has over 800 million monthlyactive users (MAU).
● Since its creation, more than 40 billion photos have been shared.
● Daily active users (DAU) total more than 500 million.
● On average, 95 million photos are uploaded daily.
● Approximately 4.2 billion likes are given every day.
● Most users are between 18 to 29 years of ag e with 32% of users being college students.

More Statistics on the Instagram Press page.

Twitter
Source: https://dustn.tv/social-media-statistics/
Pinterest
Source: https://dustn.tv/social-media-statistics/
Snapchat
Source: https://dustn.tv/social-media-statistics/
 Snapchat
Snapchat is a multimedia mobile application which was created by Bobby Murphy, Evan
Spiegel and Reggie Brown in 2011. Snapchat, one of the earliest and most successful
"ephemeral," or disappearing, message apps, evolved into a medium for live storytelling, with
curated user video and produced segments from leading online publishers.

Snapchat Statistics
● Approximately 301 million monthly active users (MAU).
● Snapchat also reports 178 million daily active users.
● Of those daily active users, 77 million are from the United States.
● 60% of these snapchat users are aged between 18 and 34 years.
● Competing closely Facebook, by reporting more than 10 billion video views daily.
● Approximately 3 billion snaps are created every day.
● Users aged 25 years and above spent an average of 20 minutes on Snapchat daily while those below 25 years spent on
average 30 minutes.
ENDED 2019
Google+
Source: https://dustn.tv/social-media-statistics/
 ENDED 2019
Google+
Google plus is a social network owned by Google. It was launched in 2011 and was meant
to be a social layer across all of Google’s products. The purpose and objective of the
social network has changed a lot over the years, but it still remains a strong staple in the
world of social networks (despite what many might believe).

Google+ Statistics
● Approximately 395 million monthly active users (MAU).
● Google+ is estimated to have over 2 billion registered users world-wide.
● 28 % of Google plus users are aged between 15 and 34 years.
● United States alone constitutes 55% of all the users.
● 73.7% of the users are male while 26.3% are female.
● It is estimated that on average, a Google+ user will spend 3 minutes and 46 seconds per visit.
Whatsapp
Source: https://dustn.tv/social-media-statistics/
 Whatsapp
WhatsApp is an instant messaging application for smartphones that comes with an end to
end encryption. It was founded by J a n Koum and Brian Acton in 2009 and later bought by
Facebook in 2014.While some may mistakenly leave it out of the social media statistics
studies, it’s absolutely one of the social networking titans, IMO.

Whatsapp Statistics
● WhatsApp is estimated to have approximately 700 million monthly active users.
● There are over one billion registered users.
● It is used in 109 countries.
● There are approximately 320 million daily active users on WhatsApp.
● On average, 1 million people register on WhatsApp daily.
● Approximately 42 billion texts are sent and 1.6 billion photos shared through WhatsApp daily.
Facebook Monthly ActiveUsers
People on Pinterest
 Pinterest
● Pinterest Primary Purpose: Acts a s an online scrapbook, showcases products, and
displays brand essence through inspiration boards.
● Unique Attributes: Generates leads and drives traffic to other content (or back to
your website)
○ Visually promotes and highlights products/services through images
○ Provokes immediate or future Call-to-Action (CTA)responses
○ Allows you to micro-target your search with clearly defined categories
○ Most businesses find that Facebook helps strengthen relationships once initially
established. If you want to grow an audience around promotions and sales,Twitter
or Pinterest has the quickest impact.
● Age Range of Users: 18-35 years old
● Gender of Users: 80% female, 20% male
 Mobile App Marketplace

• Companies are promoting their products through the

specifically designed mobile application.
• Where they keep records of the transaction made by
customers.
• They can notify customer for special offer or new
product launch.
• This apps are useful to increase customer loyalty
• So companies are promoting the uses of app among
customers.
 e-commerce platforms

There are multiples of e commerce platforms are flourishing

now days.

They provide platform to various vendors to sell their

product.

They are successful to connect customers with this vendors.

They have strong supply chain network to supply online

demanded goods or services
Video Content Platforms ( OTT)
 What is OTT ?

Over the top (OTT) is a term used to refer to content providers that
distribute streaming media as a standalone product directly to viewers
over the Internet, bypassing telecommunications, multichannel
television, and broadcast television platforms that traditionally act as a
controller or distributor of such content.
Why is OTT
?
Key supply-side developments in the
IP-based TV and VoD markets

We will focus on
Entertainment on
the next slide

2018
 Popularity of O T T Streaming Platforms

● Netflix, Amazon Prime Video, Hulu, HBO, Disney+, etc. gives

unlimited access to high quality content. As of 2019, there are over 182
million O T T subscribers in the United States.

● To enhance customer engagement, O T T video streaming platforms are

coming out with new and innovative product offerings.

Fact:
According to comScore, around 50 million households across the world,
today have OTT video, which they consume in the same time-of-day
pattern as traditional TV viewers.”
 Trend 1: Hybrid Monetization Models

There are three primary monetization models that O T T

streaming platforms operate on –

● Subscription video on demand (SVOD) like Netflix.

● Advertising (or ad-based) video on demand (AVOD).

● Transactional video on demand (TVOD) like iTunes.

 Trend 2: Rising Demand for Digital Originals

The year 2018 saw tremendous growth for S V O D platforms in terms of

the global audience demand for original content.

Analysts have forecast that the Netflix 2019 content budget could be as high
as $15 billion. Original content is here to stay and shall remain king in 2019
and much beyond, period.

Fact:

“According to Parrot Analytics’ Global Television Demand Report 2018,

SVOD platforms in
combined released 319 new digital original series in 2018.
 Trend 3: Intensive Competition Leading to Content
Fragmentation

Much of the content that you find today on Netflix or Hulu is about to
become exclusive to other rival O T T streaming platforms.

The bonhomie between O T T market players should primarily focus on

white-
labeled or co-branded offerings

Fact:

“The Content Discovery study by PwC has found that video content
discovery is a bigger pain point and source of frustration for consumers
than finding other types of media.”
 Trend 3: Mobile Surpassing T V as the Primary Content
Consumption Channel

Mobile is fast emerging as the dominant growth channel for audio and
video content distribution.

For example, a particular individual who watches Game of Thrones on a

regular T V screen while at home streams video content from YouTube
on a smartphone while travelling.

Fact:

“According to a report from eMarketer, over 75% of worldwide video

consumption occurs on mobile devices.