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SINGAPORE, Feb. 28, 2022 /PRNewswire/ -- A third (34 percent) of Southeast Asian viewers are now streaming over-the-top (OTT), according to a new study by The Trade Desk (NASDAQ: TTD). The research also shows that the region welcomed 20 million new OTT viewers in the past year. There are now 200 million users who stream 9.7 billion hours' worth of OTT content per month, an increase of 22 percent in OTT consumption over the past year. This is further indication that OTT services are meeting consumer demand for professionally-produced TV content streamed on demand over the internet that has accelerated throughout the pandemic.
The study found that OTT has captured viewers who are increasingly shifting away from traditional TV, whose content is not available on demand. Regionally, more than one in five (22 percent) OTT viewers no longer watch traditional TV. This is a 29 percent year-on-year increase that is attributed to more consumers working from home and bingeing on content at their convenience throughout the pandemic. The findings are consistent with the same study conducted one year prior, which found that OTT viewers streamed more during the pandemic, with 73 percent planning to maintain or increase OTT consumption even after the pandemic.
"Today's consumers are moving towards a new model of TV consumption, one where they can watch their favourite shows anytime, anywhere, and on any device. For broadcasters and advertisers, it's now about how quickly they can pivot to where the eyeballs are moving. Many traditional broadcasters are at the forefront of this as they have invested heavily in their own OTT offerings," says Mitch Waters, Senior Vice President for Southeast Asia, India, Australia and New Zealand, The Trade Desk.
Viewers are increasingly watching their favourite shows on OTT
Fifty-six percent of the viewers across the region say their favourite programs are on OTT, compared to 41 percent on traditional TV. This trend is even more pronounced in Singapore, where just 36 percent say their favourite shows are on traditional TV. In fact, the lion city logged the highest OTT penetration in the region, with one in two users now streaming OTT. Singapore viewers cite flexibility as a huge draw to OTT, giving them the ability to watch shows whether they're on the go or at home.
Millennials and Gen Zers are leading the shift to OTT
The study affirms that younger viewers are driving the shift to OTT. Across the region, 44 percent of OTT viewers are Millennials and Gen Zers, aged 16 to 34. These age groups are among the most coveted by advertisers because they are at a stage in life where they are starting to build long-term brand loyalties, and they tend to be trendsetters for all age groups. In Singapore, these young audiences are early adopters and heavy users, often consuming more than four hours of OTT content per day.
Ad-supported OTT sees rapid adoption
According to the study, ad-supported viewership has grown rapidly. Currently, there are 116 million Southeast Asian viewers that have embraced ad-funded content. An overwhelming majority of these viewers are ad tolerant, with nine in 10 (89 percent) willing to watch two or more ads in exchange for an hour of free content. In Singapore, ad supported viewership is rising fast as more than half of OTT viewers (52 percent) are using ad-supported platforms.
With millions relying on ad-funded content, OTT is proving to be a valuable channel for brands competing for the limited attention of consumers. The study demonstrates that OTT's professionally produced, premium content offers advantages for brands. In particular, brand recall of OTT ads is at an all-time high of 39 percent, compared to 29 percent in the prior year.
Korean content is king
Gen Z and younger Millennials are also dictating the content that will succeed on OTT platforms. Korean content, a Gen Z favourite, has come to dominate streaming schedules, stealing the spotlight from the Western fare. While the study found that the popularity of Korean content rose by 21 percent across the region, Western content saw an 11 percent drop in popularity year-over-year. Regionally, K-drama content is now the most popular genre on OTT, with 60 percent of women ranking it as their top genre, as did 62 percent of Gen Z viewers. Specifically in Singapore, Korean content saw an increase of 25 percent.
Key cross-market highlights from the study include:
Methodology
This study was commissioned by The Trade Desk and carried out by the world's leading marketing data, insight, and consultancy, Kantar. Kantar surveyed 6,715 consumers about their media consumption habits, ages 16+ in the Philippines, Singapore, Malaysia, Vietnam, Thailand, and Indonesia in November 2021.
You may download the The Future of TV 2022 reports from these links: Southeast Asia and Singapore.
About The Trade Desk
The Trade Desk™ is a technology company that empowers buyers of advertising. Through its self-service, cloud-based platform, ad buyers can create, manage, and optimize digital advertising campaigns across ad formats and devices. Integrations with major data, inventory, and publisher partners ensure maximum reach and decisioning capabilities, and enterprise APIs enable custom development on top of the platform. Headquartered in Ventura, CA, The Trade Desk has offices across North America, Europe, and the Asia Pacific. To learn more, visit thetradedesk.com or follow us on Facebook, Twitter, and LinkedIn.
