Internet TV's operating value will increase N times in the next 3-5 years

Abstract: Since 2014, the scale of OTT screen terminals in China has rapidly expanded. From January to November 2017, the number of OTT activation terminals was 148 million, and the annual average daily activity was 63 million. The number of ultra-large-scale OTT terminals gave birth to the commercial value of OTT large-screen advertising. According to Gozendata, OTT advertising revenue in 2017 was 2.3 billion yuan, an increase of 130% over the same period of last year. From the perspective of the specific structure, among them, 1.7 billion for patch advertising accounted for 70%, 460 million for booted advertising accounted for 20%, and the other 240 million accounted for 10%.

With such a vast market, how can the data be shared among them?

On December 22, 2017, the 2017 China OTT Industry Development Summit hosted by the Check Data was held in Beijing. The Chairman and Chief Executive Officer, Yu Liangxing, highlighted the data and released the 2017 OTT Industry Development Report. During the summit, Mr. Yu Liangxing was interviewed.

Based on data, promote healthy development of the industry

The reason why we chose the field of big data is actually due to Yu Liangxing’s “personal complex”. In 2002, Yu Liangxing did ratings research on Beijing TV. In 2014, he saw the combination of content and hardware and changes from product data to user data.

"At present, there are two dial-ups for OTT research. One is to reach a deep cooperation with the terminal vendors like a positive one and have first-hand data; the second is to obtain some data through manufacturers for analysis."

"The difference between the two systems, one is real-time data, the former can be real-time second-level return data, with continuity, stability, it will not appear empty period, can be viewed in real time; the latter because it is indirectly obtained, time On the other hand, there will be longer data processing time and return time. The second is a stable data source. The former can obtain relatively stable terminal data based on its own terminal scale, and it is consistent before and after, and the latter's data source will have many risks. There are ambiguous factors that can cause inconsistencies in data sources."

The advantages become more obvious and help the development of OTT industry

Since its establishment in 2014, Going Data has become China's largest OTT data platform. Yu Liangxing, who heads up the helm, believes that it benefits from three major advantages:

1. Established a continuous, stable and reliable data source system and jointly covered 7000+ million smart terminals.

2, with excellent professional team. The team can endure loneliness, deep plowing in the field of big data for many years, with professionalism. At present, the connection between live broadcast, on-demand and size screens has been fully achieved, and a complete real-time monitoring system has been formed.

3. Focus on the industry, rooted in the industry, has been dedicated to smart TV big data research since its establishment. From advertising to media has formed a good product system for B-side enterprise services - to help the media manage users and do user operations; to help advertisers achieve accurate delivery, multi-screen joint investment, real-time screen monitoring.

The three major advantages have benefited from the accumulation of self-checking data, and they have to face some real problems in the OTT industry: With the rapid development of the industry in the past two years, some unstable factors have gradually appeared in the upstream and downstream of the Bad influence, the industry value is difficult to achieve a breakthrough in value improvement.

For the current series of data fraud, content fraud, advertising fraud and a series of issues, Yu Liangxing said: "We hope that through the data can continue to quickly promote the sound development of the industry, based on data, for advertisers to help advertisers achieve accurate marketing , increase exposure conversion rate, allow consumers to entertain happily through OTT open advertising, accurate advertising, and scene placement ads.”

Unification of standards + breaking data islands to achieve value improvement

On May 23, 2017, Sophoric (CSM), CCTV Market Research (CTR), Huannet.com, Checking Data, and one point of five networks jointly established the Smart TV Big Data Alliance. On December 1st of the same year, at the Fifth China Internet Audiovisual Conference, the Internet TV Seven Licensees established the Internet Television Working Committee.

“As one of the initiators of the Smart TV Big Data Alliance, the data is highly hopeful that the data will have a unified standard in terms of use and specification. In simple terms, all parties have different definitions for OTT, and this will cause a gap in data usage. The establishment of a large-screen data system is also aimed at better regulating large-screen consumption and entertainment data. It is hoped that more organizations can participate in this, and jointly promote data standards and create a good ecology."

In addition to the unified standards for data, Yu Liangxing believes that "data connection" is also a major issue that restricts the development of the industry. Because user behavior occurs at multiple levels, and many companies do not openly and difficult to share data in the hands, thus forming a data island. Only by breaking data silos can data be standardized.

Regarding how to realize data realisation, he stressed: “With the promotion of the “bigger and stronger digital economy” and the national big data strategy, speeding up the construction of digital infrastructure is the top priority. However, with the massive inflow of capital, the market has begun to appear as a bubble. It has to move towards a short-term expansion phase.The Central Economic Work Conference held in the previous few days put forward efforts to solve outstanding problems such as false information fraud on the Internet, reselling personal information, etc. Checking data services must be done under the condition of protecting user privacy information. The screen is open to completely evade the leakage of personal information and family information."

It is understood that at present the company has formed two sets of data solutions centered on media and advertising. “In the new environment, we have done a more comprehensive analysis and interpretation on the large-screen media. In the short term, we will make differentiation. As OTT becomes the mainstream of the market, it will surely cover all application areas in the long-term.”

Future media trends, giving some judgments

“Before the era of user accumulation and television internetization, the value of Internet TV operations began to become prominent after 2014.” For OTT's big-screen value, Yu Liangxing believes that the value of Internet TV's operation will be N in the next 3-5 years. Times increase. The scale of smart TV inventory will exceed that of cable TV in 2019, 70% of households will be covered by 2020, and the OTT behavior time will exceed 50%. The audience returned to the living room and spent more time on television. Among them, the proportion of successful upstarts, middle class, and minority groups will account for more than half.

"The OTT advertising in 2018 will reach 6 billion yuan, and the integrated marketing of OTT booting and non-booting resources will be favored by advertisers. The targeted user operation of real-time data insight may become an effective way of advertising premium. In addition, global marketing As the curtain rises, cross-screen advertising will achieve better marketing results."

Finally, when it comes to the media development trend in the future, Yu Liangxing gives him some judgments:

1. Users are becoming more accustomed to new media. With the increase in the number of paid members, new media operations are paying more and more attention to the user's experience. The mandatory boot advertising form is no longer suitable for current advertisers.

2. Compared with start-up advertisements, scene-based advertising is more accurate, and multi-screen joint investment is conducted around family circles and relationship circles. At the same time, interactivity increases. As a result, the memory effect of advertisements is prominent, and the brand positioning is clear, making users tend to purchase.

3. Video media in vertical applications is still the main force in the market and will lead the industry in exploring operations.

4. The value of the distribution platform will gradually be reflected, and the form of video distribution advertisement will no longer be single. Educational applications and service scenarios will become new growth points on the smart screen after the video and distribution platforms.

5, the audience is the user, the television station has entered the era of user traffic operations. The television station has changed from the previous broadcast format to focusing on the user's operations and paid attention to the effect of the distribution of its content on large screens and across screens. Ratings are no longer the only assessment system. Take "The Year of the Month" as an example. The live stream value remains the same. On-demand streaming occurs during the broadcasting of live broadcast channel content. On-demand and live users flow to each other, and on-demand traffic is back-fed to the live broadcast. 20% of the live broadcast traffic during the broadcast of “Yuekaipuyue” was introduced on demand.

6. As a broadcast control platform, cable television has a very simple income model, and its advertising model will gradually turn into a contracting system. Because audiences have a high degree of trust in television, television stations can turn their influence economy into a purchasing power economy.

7. In the next three years, cable television, OTT, IPTV, and satellite TV will present themselves in a plentiful manner.

postscript

As the Internet TV big data industry has been seen as an outbreak in the past two years, advertisers' demand for OTT large screen advertisements is more specific and accurate. At the same time, the selection of media platforms is more imaginative. The use of accurate media user portraits to help advertisers achieve effective reach has contributed to the support of big data behind them.

As Yu Liangxing said before: Our dream is to connect all the data of smart devices. As a third-party platform big data company in the field of intelligent terminals, data is being used to provide true, comprehensive, and continuous data for upstream and downstream parties in the OTT industry chain. Only this kind of adherence for many years can promote the rapid and sound development of the OTT industry and realize the realization of the value of the OTT industry.

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