October 8, 2015, Riga (Latvia) – the Nemo Telecom, designer of the OTT video service Nemo TV, launches additional advertising monetization of the project. The transition to a mixed business model will ensure business diversification and support the company’s entry into new markets.
The Nemo TV, an integrated OTT TV video service, starts using advertising tools in the application as a commercial experiment. So far, the Nemo TV has operated exclusively under paid subscription. The advertisers accessing the OTT-TV segment will get an access to an efficient channel for communicating with audience.
The Nemo TV service works on Smart TV, on regular TV-sets by using set-top boxes Nemo Box HD, on tablets and Smartphones. Video advertising in the application is actually available just on the platform Smart TV.
Despite the fact that Smart TV remains still a very young advertising platform, the advertisers’ interest to it has been growing. According to our estimates, the Smart TV-sets will be used by over 20 million of Russians by the New Year. For sure, the advertisers can not ignore the fact that a substantial part of the solvent audience shifting to the Smart TV is not covered by them, as pointed out by Dmitry Mineev, Content and Business Development Director at the Nemo TV. The format of cooperation with advertisers may completely differ, starting with video and banner ads and ending with special projects and media barter.
Apart form the Smart TV, the targeted video advertising in the Nemo TV service will be also available soon on other platforms: tablets, Smartphones and TV set-top box Nemo Box HD. The Nemo TV’s cross-platform ability will ensure a significant advantage to the service in attracting advertisers.
The advertising in the service is now partially present in the Video Library, as well as when changing 36 TV channels, available to the Nemo TV’s users for free.
At the moment, this is test functionality, which following to the analysis, statistics and dialogue with partners will be honed to perfection. The advertising does not interrupt TV channels’ broadcasting, does not cut into air, and it runs only when changing channels. When watching video, there are displayed pre-rolls, mid-rolls, post-rolls and pause-rolls, as specified by Dmitry Mineev. For the Nemo TV’s paying subscribers, as well as for new users, who test the service under the promotional period conditions, the advertising is disabled.
The high efficiency of advertising tools offered by the Nemo TV is due to a number of factors. First, a significant part of the service’s audience is represented by residents of million-plus cities of Russia and the 11 largest cities in the CIS countries. As a rule, the middle class and the well-to-do who are great on new technologies, is the very attractive audience for advertisers. Second, the solution by Nemo TV allows adjusting the geo targeting up to a certain residential community. Third, the lack of high advertising pressure has a positive effect on the audience’s loyalty and enhances attention to the content of an advertising message, thus increasing the rate of viewing clip to its end.
The transition to a mixed business model with launching advertising tools will provide the video service Nemo TV with additional monetization source, what will help it to diversify its business and to build a new and efficient channel of dialogue with users. The company intends to develop cooperation with the largest advertisers, sales houses and RTB sites in Russia and CIS countries.
