For many of today’s top enterprises, the ability to get the most out of their data has become a top priority. Turning data into insights, though, is easier said than done. Organizations need a data intelligence engine that will harness the power of their data, ensure it can be trusted, and empower their data consumers with the right data at the right time to deliver business value and a positive impact on video businesses’ revenues.
One of the main challenges we have seen that our clients and many other video businesses are facing is that they have plenty of data, many different tools to measure that data and dozens of KPIs they track, but at the end of the day they rarely use this data, or at least not its full potential to impact their main business goals such us engagement or monetization.
There’s no question that media consumption in digital formats has grown exponentially over the last few years. People are increasingly turning to OTT platforms to view their favorite content. Artificial intelligence, Big Data and the intelligent use of data are essential to attracting, acquiring, and retaining OTT subscribers. When Disney launched its video service in 2020, it was able to attract over 10 million subscribers in just 24 hours. Clearly, OTTs need to focus and work intensely to improve their subscription revenues and make their platforms successful and profitable.
Fuel Data-Driven Decision Making with trusted Data
The famous customer experience futurist Blake Morgan’s philosophy on the acquisition process insists on the importance of connecting with customers in order to offer them products that are truly of value to them, now and in the future. It is crucial for OTT providers to understand their audiences and how to supply them with the content that is most relevant to them. Therefore, the analysis of the behavior of their users allows us to help them make recommendations based on the data obtained through Artificial Intelligence and Machine Learning. The success of an OTT depends on its content, but also on how positive the experience of using and perusing the platform is.
For companies, acquisition is a challenge that has its own set of complications. Befpre the development of predictive analytics, there was no way to forecast the future behavior of users. Today, however, thanks to major advances in ML and IA, we now have predictive techniques that allow video platforms to anticipate movements and develop much more effective strategies.
Personalization is another vital means of exponentially increasing the earnings of video platforms and can be helpful in reacquiring customers they thought they had lost. Personalization requires the ability to group consumers of content by level of engagement and create clusters that take into account their habitual tastes. It’s also a way to maximize marketing.
Let’s imagine a situation where you come to realize that users that regularly view comedy content have been inactive for some time. So you decide to launch new content that is related to previously-viewed content to user groups that have been carefully segmented based on a number of demographic and consumption variables, along with a campaign to get their attention (perhaps through notifications or emails). Thanks to these actions, you can reduce expenditures by acting directly on those people you know will consume the content, inducing them to return to the platform and increasing their loyalty while also greatly reducing the costs associated with launching the marketing campaign, since it will be directed towards a very specific segment of users for maximum impact, rather than towards all of the users in the database, which would not only be a large investment but would also bring down the engagement rate of users that are not interested in that type of content.
To create campaigns that are successful in acquiring new customers, it is also important to identify the most appropriate platforms and means for your communications efforts. Nowadays, there are many ways to communicate and send messages: push notifications, SMS, emails… all good tools that OTT providers can use, and the right mix can achieve the desired effect and ensure that your influence reaches the intended consumers. To deliver a message to future viewers, it’s important to take advantage of the strengths that these communication channels present for each specific group of users, and thereby achieve greater reach without incurring additional costs.
The most successful companies know how to balance their investment in acquiring new customers with their investment in retaining their existing customers on the platform. To achieve this balance, it is of utmost importance to understand the Customer Lifetime Value for both of these categories. When an OTT knows how much their customer is worth, then it will have a greater awareness for making smarter and more exact investments. Otherwise, the money invested may only lead to losses for the platform. Netflix, Hulu and Amazon Prime Video have been able to amass millions of monthly active users.
During and after the kind of isolation that our society has experienced, the acquisition of new customers has become easier than before. It has led to a large increase in OTT subscribers, with the search for new avenues for the virtual distribution of content that until then had been enjoyed directly. The expectation is for this exponential growth to continue in the coming years, with a very positive perspective. Media analysts predict that in 2025, SVOD platforms will gain close to two billion subscribers. Studies of 16 different countries show that at the end of 2020 there were 121.9 million paid subscribers.
This information indicates that there will be many opportunities for video service providers. Many regional video platforms are taking steps and growing more, and even giving big OTTs like Netflix and Amazon Prime a run for their money. The use of intelligent data will be essential to success on this journey and towards a deeper understanding of their audience. This is how they can offer their customers relevant and attractive content. A satisfying experience for subscribers and personalized marketing are the keys to achieving an increase in subscription revenues.