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Future of TV 2022 SoutheastAsia

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THE

FUTURE
OF TV 2022
The state of OTT in Southeast Asia
THE FUTURE OF TV OTT IN SEA

9.7 hours of OTT are watched in a

billion
month in Southeast Asia

48.6
average hours spent viewing OTT
per month vs. 42.5 average hours
OTT consumption is up spent on traditional TV per month
22 percent year on year

+22%
Southeast Asian viewers now stream 9.7 billion
hours of content every month — up from 8 billion growth in regional
last year. OTT consumption
The average viewer now spends 48.6 hours
watching OTT every month, a growth rate of 9
percent year on year.

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 3407) 2
THE FUTURE OF TV OTT IN SEA

OTT penetration There are 200 million OTT


viewers in Southeast Asia
grew 11% (SEA) — representing an
year on year annual growth rate of 11%,
or 20 million new OTT
viewers in the past year.

34%
OTT penetration
amongst all consumers
surveyed in SEA

200M OTT users in


the market
Voice of the
consumer:
“The most popular channel (for video
entertainment) to date; it hits the important factors
Philippines

18%
of easy-to-use, cheap, accessible, and provides
are heavy users
new and interesting content for its users.”
(watching >4
hours per day)

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 601) 3
23%
THE FUTURE OF TV OTT IN SEA
of 16- to 34-year-olds
in SEA are heavy users

Millennials and Gen Z are


leading the shift to OTT
Younger viewers are driving the growth of OTT: 44
percent of OTT viewers regionally are Gen Zers or
young Millennials, aged 16-34.
What’s more, they’re not just early adopters: these
young audiences are more likely to be heavy
users, consuming more than four hours per day of
OTT content.

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M)
4
Base: SEA (n = 3407), SG (n=400), ID (n=603), TH (n=602), PH (n=601), VT (n=600), MY (n=601)
SOUTHEAST
ASIA
Top content trends
THE FUTURE OF TV OTT IN SEA
To watch my favorite shows, I tune in to...

56%

Viewers turn to OTT for 41%


their favourite shows —
not traditional TV
OTT is disrupting traditional TV in Southeast Asia, and
fast. Two major reasons are the availability of quality
shows from different regions — typically not found on OTT Traditional TV
traditional TV — and the flexibility OTT offers, enabling
To watch shows at my own time, I tune into...
viewers to watch their favourite shows on their own time,
at home or away, on any screen.
53%

Voice of the “OTT is an integral part of consumers’ lives in 36%


consumer: Singapore, almost every family I know has at least
Singapore
one OTT platform. It will eventually be the main
source of long-form entertainment for Singaporeans.
It has dramatically shifted TV consumption in my
family from free to air TV to OTT.”
OTT Traditional TV
The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M) 6
Base: SEA (n = 3407),
56%
THE FUTURE OF TV OTT IN SEA of Gen Z ranked Korean
among their top two
preferences (vs 46% overall)
Hollywood who?
Korean content steals
share from the West Top 3 content origins, by market

The top content story of the past year couldn’t be


clearer or more dramatic: the rise and rise of Korean
content. Korean content rose 21 percent in popularity 48%
46%
across all markets in Southeast Asia during the past
year. It’s now ranked #1 in terms of preference in 37%
Indonesia and Philippines.
Korean content is growing at the expense of Western
fare. The number of people who ranked Western content
as a top preference dropped 11 percent.
Female viewers are more likely to favor Korean content:
60 percent ranked Korean content as a top preference,
whereas male viewers still prefer Western programming
(57 percent vs 48 percent overall).
Western Korean Local

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 601) 7
THE FUTURE OF TV OTT IN SEA

OTT’s top genre: K-drama


Korean Drama also stole the top slot for most popular
genre, followed by action and comedy.
Again, there’s a distinct split in preferences between
male and female viewers. Female Gen Z, Young Top three content genre by persona
Millennials and Moms all rank Korean drama as their
top genre. Male Gen Z viewers prefer comedy, while
male young Millennials favor action.
Male Gen Z Female Gen Z Male Young
1. Comedy 1. Korean Drama Millennials

68%
2. Animation 2. Comedy 1. Action
3. Action 3. Romance 2. Comedy
of female viewers rank Korean 3. Live Sports
drama as their favourite genre

62%
Female Young
of Gen Zers rank Korean drama as Millennials Moms
their favourite genre 1. Korean Drama
2. Comedy
1. Korean Drama
2. News
3. Action 3. Comedy

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 601) 8
SOUTHEAST
ASIA
What brands should know

1. Ad-supported OTT is on the rise

2. As Smart TV penetration rises, OTT is capturing


viewers switching from traditional TV

3.
OTT offers higher engagement, less
intrusive ad experience than TV or user-
generated content (UGC)

4. Brands are making inroads with OTT advertising


69% 61%
THE FUTURE OF TV OTT IN SEA

of female Gen Zers watch ad- of female young Millennials


supported platforms watch ad-supported platforms

More than 116 million


Southeast Asian viewers How viewers access OTT platforms

embrace ad-funded content


Advertisers can now reach more than 116 million
viewers on OTT, a growth rate of 10 percent year on year. 50%

Female Gen Z and female younger Millennials are most


likely to use ad-supported platforms — making OTT an
ideal channel for brands looking to reach and build
relationships with younger women. 41%

82%
8%
of SEA OTT viewers use
SEA
more than one OTT
platform vs 80% in 2020 Ad-supported only Subscription only Both

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M) 10
Base: SEA (n = 3407), SG (n=400), ID (n=603), TH (n=602), PH (n=601), VT (n=600), MY (n=601)
89%
THE FUTURE OF TV OTT IN SEA
of OTT viewers are willing to
watch two or more ads per hour
OTT viewers embrace of free content

ads for free content


No. of acceptable ads in one hour of free content
Among the 88 percent of OTT viewers who are
open to seeing ads in exchange for free content,
89 percent are willing to watch two or more ads 15%
(for a one-hour show). 34% 32% 35%
30%
42% 41%

68%

56%
55% 57% 55%
50% 50%

17% 14%
11% 8% 9% 12% 11%

SEA Singapore Indonesia Thailand Philippines Vietnam Malaysia


1 2 to 3 4 or more

The Trade Desk Future of TV Survey 2021 (Number of OTT viewers who are open to seeing an ad = 3050) 11
THE FUTURE OF TV OTT IN SEA

Open to watching two ads or more


Women, Gen Zers, and young
Millennials are most likely to 94%

accept two or more ads per 90%


hour of free content
89%
88%
86%

94%
of young Millennial OTT
viewers are willing to watch 2
or more ads for free content

Overall Male Female GenZ Younger


Millennials

The Trade Desk Future of TV Survey 2021 (Number of OTT viewers who are open to seeing an ad = 3050) 12
22% 37%
THE FUTURE OF TV OTT IN SEA

of OTT viewers did not watch of Gen Z OTT viewers did


traditional TV in the past not watch traditional TV in
three months vs 17% in 2020 the past three months vs
30% in 2020

OTT has captured viewers who % of viewers who watched less


are switching from traditional TV traditional TV and…

Audiences are increasingly cutting the cord with


52%
traditional TV. 22 percent of OTT viewers no longer Watched more OTT

watch traditional TV. That figure has grown 29 percent


year on year.
Watched more 41%
Well aware of this shift, traditional broadcasters are YouTube
investing heavily in OTT platforms.
To reach all audiences, advertisers will need a strategy 31%
Consumed more
that addresses both channels, especially to reach social media
younger viewers who are abandoning TV at a faster pace.

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 3407) 13
THE FUTURE OF TV OTT IN SEA

Smart TVs are bringing OTT to


the largest screen in the house
1 in 5 OTT viewers purchased a Smart TV in the past six
months — while half of those who still don’t own one are
likely to purchase a Smart TV in the next 18 months.
Smart TV now claims one third of all OTT viewing hours:
roughly 3 billion every month.
However, smartphones still reign supreme among youth.
Gen Z consumes 47 percent of their OTT via mobile
while the average user consumes 36% on smartphone.

21%
of OTT viewers in SEA have
46%
of OTT viewers in SEA are
purchased Smart TV in past somewhat or very likely to
six months1 purchase Smart TV in the next
18 months2

1. The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M and own
Smart TV = 2474)
2. 1. The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M and does 14
not own Smart TV = 933)
THE FUTURE OF TV OTT IN SEA

Compared to traditional TV, OTT viewers are...

OTT offers higher


engagement, less
intrusive advertising 23% less likely to
multi-task on OTT

experience
than TV
23%
more likely to agree they
are less distracted when
Viewers report higher levels of watching OTT
engagement and less distraction

14%
on OTT than on traditional TV.
more likely to agree that
Advertisers should build media
premium brands advertise
plans to account for the
on OTT
complementary strengths
of both channels.

14%
more likely to say
ads on OTT are
less intrusive

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 3407), 15
(Number of OTT viewers who have watched Traditional TV in P3M = 2586)
THE FUTURE OF TV OTT IN SEA

Compared to YouTube, OTT viewers are…

19% less likely to


multi-task on OTT

21% less likely to ignore


or skip ads

Premium OTT content


10%
more likely to
delivers higher engagement, agree ads on OTT
are less intrusive
less intrusive advertising
experience than UGC
15%
more likely to agree
they are less distracted
when watching OTT
Voice of the
“As for YouTube, viewers do not have control over

14%
consumer:
Malaysia the larger viewing experience (difficult to access more likely to agree
licensed, high-quality content like movies or TV that premium brands
shows and no continuity in watching patterns).” advertise on OTT

The Trade Desk Future of TV Survey 2021 (Number of people using at least 1 OTT platform in P3M = 3407), 16
(Number of OTT viewers who have watched YouTube in P3M = 3085)
THE FUTURE OF TV OTT IN SEA

Brands are making inroads


39%
of viewers say they
with OTT advertising remember the brand of the
Brand recall has improved significantly, with 39 last ad they saw on OTT
percent of OTT viewers saying they recall the brand
of the last ad they saw on OTT, compared to 29

44%
percent in 2020. of viewers say that OTT
Ad relevance improved from last year as well, ads are relevant to them
jumping 19 percent. all or most of the time

The Trade Desk Future of TV Survey 2021 Viewers recall about the last ad (n=2194), 17
Relevance of ad to the viewer (n=1816)
SOUTHEAST
ASIA
Top personas:
Gen Z, young
Millennials and Moms
THE FUTURE OF TV OTT IN SEA

STREAMING CONTENT IS SECOND NATURE MY PASSIONS

• Watching content is a lifestyle that most • Gen Z loves K-drama. Almost two in
Gen Z viewers are accustomed to. They are three tune in to Korean content.
40 percent more likely to say they watch They’re also big fans of animation — in
OTT out of habit. particular, Japanese anime.

• For Gen Z viewers, OTT is be the perfect


HIGHLY AMENABLE TO ADS
outlet for ‘me-time’: they’re far more likely to
watch alone (47 percent more likely). • Gen Z viewers report being less distracted
• Gen Z are also highly mobile: They claim when watching content on OTT platforms
the highest share of smartphone viewing than either YouTube or OTT.
(31 percent) and are 10 percent more • They’re also more receptive to ads in return
likely to reflect that they enjoy OTT for free content. Around 88 percent of Gen
because they want to watch their desired Zers are willing to watch two or more ads
content outside of the home. They are also within the span of a one-hour show. Female
less likely to switch over to Smart TV. Gen Zers are the most likely of any cohort to
GEN Z use ad-supported platforms.

16-24 years old MY CONTENT ON MY TIME • Gen Z are more likely to positively associate
brands with the premium experience OTT
• The average Gen Z viewer watches 7 percent offers, saying it’s more likely that premium
Digital natives to their core, Gen Z OTT viewers
more OTT a day than the regional average. brands advertise on OTT.
across the region stream more OTT than average.
Watching OTT has become an integral part of • With more flexible schedules, they’re also
their lifestyle. more likely to be found catching up on
their favourite shows during the afternoon
Their viewing is also more individualistic —
and late night than during traditional TV
they’re more likely to tune in solo, via smartphone.
prime time.
Gen Zers are less distracted while watching ads
and love to watch K-drama and Japanese anime.
19
THE FUTURE OF TV OTT IN SEA

ELEVATING THEIR VIEWING EXPERIENCE MY PASSIONS

• Young Millennials consume OTT via • Young Millennials have really embraced
smartphone, but they’re 20 percent more Hallyu wave content, with more than 50
likely to switch to Smart TVs completely percent reflecting Korean shows to be in their
when watching content at home. top ranks

• Many have upgraded their broadband • However, they also like to watch animation,
connection (47 percent vs 42 percent reality shows, variety shows, sports, and
overall), enabling them to shift towards Japanese anime.
OTT and away from traditional TV.
RECEPTIVE TO ADS WITH HIGH RECALL
BOTH A SOCIAL AND SOLITARY ACTIVITY
• Young millennials are one of the most ad-
tolerant age groups. They’re also 15 percent
YOUNG MILLENNIALS • The average young Millennial viewer
less likely to say they skip or ignore ads on OTT.
spends the most time watching OTT
25-34 years old content among all age cohorts, clocking in • They’re also 13 percent more likely to
nearly three hours of content — more than remember the brand advertised.
Young Millennials OTT viewers are voracious OTT 10 percent higher than the average.
consumers, streaming the most of any age group.
Mobile savvy, they’re upgrading their home TV • Younger Millennials are also most likely to PREMIUM AD-INDUCED SHOPPING BEHAVIOUR
experience to Smart TV, enabling them to cut the reflect a mix between either watching
cord with traditional TV at greater rates than the alone or with family and friends. While • Young Millennials are most likely to agree that
general populations – even as they consume nearly 3 they prefer OTT for the ability to watch more premium brands advertise on OTT
hours of OTT per day. content outside of home and to watch platforms (43 percent vs 35 percent on average)
something different from what family is
Young Millennials love the flexibility and convenience • They are also more likely to click on the
watching, they also appreciate the ability
which OTT provides. They switch seamlessly ads shown to them and follow through
to enjoy shows together.
between both solo and social viewing. with a purchase (41 percent vs 36 percent)
• Regardless, their viewing is spread out – likely because they report the lowest
Young Millennials report high levels of engagement more towards the end of the day and distraction levels among any age cohort
with OTT. This reflects in their ad behaviour as they may be an activity to unwind either while streaming OTT.)
report higher levels of brand recall and purchase together or alone.
intent after seeing ads on streaming platforms.
20
THE FUTURE OF TV OTT IN SEA

MOMENTUM SHIFT MY PASSIONS

• Moms are upgrading their OTT experience. • Moms love to watch Dramas, Reality TV
They’re both more likely to have gotten a and Romance
new broadband connection or updated
• Within Dramas, K-Drama reigns supreme:
their plan in the past 12 months (49
68 percent of moms watch K-drama.
percent vs 42 percent overall), and more
likely to watch Smart TV.
AN ADVERTISER’S DREAM
• Moms are 10 percent more likely to say
they’ve switched to OTT over TV than aver. • Moms report significantly higher brand
recall after watching ads on OTT
MOMMY ME-TIME platforms (28 percent more than overall)
and are 32 percent more likely to click
• The average mom watches almost ads most of the time. They’re also more
three hours of OTT a day — higher than likely to report that ads are relevant.
the regional average. And they also
MOMS tune in more frequently than average
• They find the ads in OTT to be less
intrusive than other channels and are
as well: they’re 30 percent more likely
Females with children than overall to watch daily.
less likely to skip or ignore these ads.

in household <16 years • Moms check in to OTT throughout the day. • Moreover, Moms are significantly more
likely to purchase products after
Moms across the region have embraced OTT watching ads on OTT (30 percent more
over the last year, shifting away from traditional FAMILY TIME
than overall)
TV in the process.
• Moms are more likely to report that they tune
Engaged and focused, moms who stream OTT into OTT include to enjoy shows or content
are an advertisers’ dream. Mothers report together with their family. They also report
higher brand recall and ad relevance than streaming content keep up to date with their
other cohorts. They also report that OTT ads are online social network, staying on top of the
less intrusive than other platforms, and are less latest K-drama their friends are watching.
likely to skip them. Moms are also the most
likely to follow through with a purchase.
21
THE FUTURE OF TV
KEY TAKEAWAYS

The implications for brands and marketers are huge

Follow the eyeballs Access Gen Z and Ad-supported OTT complements Brands making
Millennial viewers streaming is TV and UGC inroads with OTT
OTT consumption is growing fast
rising fast as viewers Gen Zers and The number of While OTT is a new
stream more each Millennials are Advertisers can viewers who no channel, brands are
day and tune in more leading the shift to reach more than longer watch learning fast. OTT
often. The average OTT, motivated by the 116 million traditional TV has viewers report higher
OTT user now ability to craft a Southeast Asians risen dramatically. levels of brand recall
watches 48.6 hours personalized viewing on ad-supported OTT is capturing the than they did a year
per month. experience that OTT platforms. lion’s share of these ago. Key personas,
allows them to These audiences viewers. OTT offers such as Gen Z,
access their favourite are more receptive better engagement Millennials, and
shows on demand. to ad-supported than both UGC and Moms are also
viewing than ever, traditional TV. increasingly likely to
willing to watch Advertisers should make purchases after
more ads for free consider including seeing ads on OTT.
content than they both in their media
were one year ago. plans to maximize
the impact of their
campaigns.

22
THE FUTURE OF TV
KEY TAKEAWAYS

Work with The Trade Desk to make the most of the OTT opportunity

Access tools to reach millions of Southeast Asian viewers using data-driven OTT buying.

Data-driven buying Measure real-world Real-time frequency Premium inventory Brand safety
results capping within one platform
Layer rich first- and Maximize brand safety
third-party audience Tie your investment to When buying OTT with Advertise alongside without the need for
data on your media real business results by The Trade Desk, you premium inventory third-party tools to
buys — including measuring and decide when, where, from top local and manage and track.
interests, attributing in-store and how often your ads regional OTT platforms.
demographics, visits and online and appear — in real time Activate and manage
contextual, content, offline sales to ads on — down to the minute, all your OTT deals
geography, and OTT. Or, take hour, day, or week. within one platform.
more. Using our AI advantage of high
engine, Koa™, viewability and
automatically optimize completion rates to
your campaigns build and track brand
toward your most awareness.
valuable viewers.

23
About The Trade Desk and Kantar
The Trade Desk helps brands and their agencies advertise to audiences
across millions of ad-supported apps, websites, and streaming
providers — all around the world. Their media buying platform is
focused solely on the buy side, empowering advertisers with data,
transparency, and precision to reach and grow their audience
everywhere. And helping to power the content that fuels the free and
open internet.

Kantar is the world’s leading marketing data, insight, and consultancy


company. Part of WPP, the company’s services are employed by over
half of the Fortune 500 companies in 100 countries. Their global team of
consultants blend people expertise and industry experience to build
solutions that help drive incremental growth for our clients. This
document is developed in partnership with the Consulting Division,
located in Singapore.

For more information, contact us at info@thetradedesk.com


Methodology
This report was commissioned by The Trade Desk
and carried out by the market research company,
Kantar. Kantar conducted a survey among 6700
consumers, ages 16+ in the Philippines, Singapore,
Malaysia, Vietnam, Thailand, and Indonesia in
November 2021.

For more information, contact us at info@thetradedesk.com

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