CTV in Asia Pacific
APAC, like Europe – perhaps even to a greater extent – is a richly diverse region, each country having its unique characteristics.
The one thing the regions share, however, is that audiences have
fully embraced streaming video, and viewer numbers have now reached critical mass and continue to grow along with the amount of time spent watching streaming video.
APAC continues to be a mobile-first region, especially among younger OTT audiences.
However, CTV adoption is growing not only in the more advanced markets of Japan, Philippines, Singapore, and Vietnam, particularly among older consumers.
With CTV on the rise, advertisers now have major opportunities to tap into the advantages of addressable TV, including the more granular audience targeting that CTV facilitates.
Source: ThinkWithGoogle
OTT Reaches Viewers Watching Linear TV and YouTube
According to the latest Magnite OTT is for Everyone 2021/22 report, the adoption of advertising video on-demand (AVOD) is rapidly increasing as audiences migrate away from linear TV. Free streaming video has already exceeded linear TV as the most regularly watched platform among younger video viewers.
For older viewers, free streamed video now rivals linear TV as the most regularly watched platform, while cable/pay TV remains the least watched by young and old audiences. Audiences who watch UGC (user-generated-content) platforms such as YouTube also actively watch OTT.
Across Southeast Asia, where a variety of regional and local OTT players exist, the combined OTT reach across the five markets is comparable to that of YouTube’s.
Source: ThinkWithGoogle
Source: Magnite
APAC Younger Generation Viewers
OTT audiences aged 16-34
Within this age range, at 64%, smartphones are the dominant viewing device.
Smart TV usage is growing particularly in Japan, Philippines, Singapore, and Japan, with Vietnam ranking highest at 27%.
Traditional TV, at only 3%, was ranked as the leased preferred device for video consumption throughout all regions.
APAC Older Viewers
OTT audiences aged 35-44
Smartphones are also the preferred device to watch video content for this age group, but smart TV adoption is growing significantly, particularly in the more advanced markets.
20% of OTT audiences across the Philippines, Singapore and Vietnam rank smart TVs as their second most preferred device.
Source: Magnite
Source: Magnite
Affluent OTT Viewers
Although affluent OTT audiences can afford the cost of ad-free experiences, free streaming video content remains widely watched within this major and growing group.
Smart TV adoption is also higher at 20%, while smartphones continue to dominate at 52%.
Affluent OTT audiences are also highly engaged viewers who purchase online and offline and appreciate ads which are relevant and non-disruptive.
- OTT Reaches Linear TV & UGC Audiences
- 61% of affluent video viewers regularly watch free streamed content
- 32% of affluent OTT viewers are willing to pay for an ad-free experience
- 68% of affluent OTT viewers can still be reached through AVOD services
A Relevant, Non-Disruptive Ad Experience is Preferred
Across all OTT viewer demographics, while OTT viewers are open to ads in exchange for free content, they do appreciate less repetitive ads, and ad experiences that align with their preferences.
Thus advertisers shouldn’t ignore the importance of a seamless ad experience, which is achievable on OTT where frequency capping and an intuitive user experience can contribute to greater effectiveness.
43% of OTT viewers rank relevance as a top factor for watchable ads.
41% of OTT viewers rank non-repetitive ads as a top factor to keep them open to watching ads.
68% of OTT users prefer the destination of a clickable ad to be within the platform/app where the ad was viewed versus an external destination.
CTV Delivers Results For Advertisers
OTT adoption has grown rapidly throughout the APAC region, boosted in part by the pandemic.
AVOD, in particular, is now actively watched by linear TV and UGC audiences, especially the younger demographics who have shifted away from TV to video streaming platforms across mobile and CTV.
This offers brands a unique opportunity to reach engaged viewers in a premium environment that brings together the best of both TV and digital. CTV audiences have embraced ad-supported content and are willing to watch ads in exchange for free content. However, the ad experience remains important to all audience groups.
Relevant, non-repetitive, and engaging video ads better resonate and more effectively capture viewer attention.
With viewers drawn to its convenience and variety of premium content, OTT and CTV promise to continue their upward growth rate, and advertisers wanting to reach the right audience and achieve key marketing objectives should consider CTV a crucial addition to any TV-based media plan.
Connected TV is Global
Frequently Asked
Questions
Growing Rapidly Worldwide
CTV and OTT is set to replace most terrestrial TV viewing in many countries.
