With the rapid popularization of smart TV, the OTT industry has also developed rapidly, but what is OTT? OTT is the abbreviation of "Over The Top" and refers to providing various application services to users through the Internet. This kind of application is different from the current communication service provided by the operator. It only uses the operator's network, and the service is provided by a third party other than the operator. It can be simply understood as watching TV programs with a TV box or smart TV to watch TV programs connected to the Internet. Currently, participants in the OTT industry chain can be divided into several categories: Content provider, License provider, Platform provider, Hardware provider, etc., all of them are part of OTT. In addition, many people confuse OTT and CTV. In short, OTT is the delivery mechanism of video content, while CTV is the device used to access content.
For Chinese netizens, OTT device has become the second largest online video viewing channel after mobile phones. The growth rate of OTT users in China is also among the highest in the world, with an increase of 19.7%.
In 2019, more than 52% of Chinese watched TV programs through OTT devices, which reached more than 611 million users. With the growing audience size and accurate delivery format, the OTT advertising market has reached 5.5 billion RMB in 2018, with a year-on-year increase of more than 200%. It is expected that the OTT market will continue to grow, and the market size is expected to exceed 30 billion RMB in 2020. According to the report of the 2020 White Paper on Big Screen Ecology of Chinese TV, the OTT interactive platform of the online audience is as high as 32.14%, which is three times as high as that of other platforms. Hisense has the highest proportion, reaching 10.29%.
Here is an example of China's largest OTT, Hisense, to introduce the types of OTT advertising in China. Hisense is ranked No. 1 in China's market share for 16 consecutive years, which has also established Hisense JUHAOKAN's market position as China's largest Internet TV cloud platform. The global total number of activated terminals has reached 43.18 million. JUHAOKAN OTT integrates global content resources to create the best user experience for users. Based on personalized marketing strategies based on content, region and population, it accurately positioning marketing goals, and comprehensively covering media advertising resources, including Boot ads, Screensaver ads, Mobile Advertising and others.
Download the latest report (in Chinese) here. Get in touch with us if you are keen on advertising on OTT or CTV.