The untapped potential of OTT for Singapore marketers

 

A recent study commissioned by Nexxen unravels how Singaporeans use ad-supported streaming platforms and the relevance of OTT for advertisers. The study reveals valuable data about the content that Singaporeans tend to watch, the services they use, and how they feel about the ads they encounter. Meanwhile, the research also includes insight from senior advertising and marketing executives about OTT platforms as ad platforms, the benefits of adopting the model, and the perceptions about its potential in 2025. 

 

Affordability is attractive

 

Cost-of-living pressures continue to influence consumer spending. Whether it's in groceries, energy bills, rent, or other product and service categories, Singaporean consumers are welcoming opportunities to save.

 

In the case of screen-based entertainment, services that incur monthly or annual subscription costs might not be feasible, especially when viable alternatives exist. Our research suggests that platform costs significantly influence viewer behaviour. When asked which factor most influenced viewers’ choice of streaming platform, cost was identified by 60% of our survey group. 

 

Ad-supported streaming platforms operate on a simple proposition - they offer big libraries of content to viewers for free in exchange for watching relevant advertising alongside. This allows viewers to enjoy the shows and movies they love without any upfront cost.  

 

It’s clear that many consumers are happy to watch ads in exchange for free content, and the many ad-supported streaming platforms available in Singapore make for content-rich and easy viewing experiences. Advertising partners of these platforms naturally stand to gain the benefits.

 

Serving ads effectively

 

When it comes to ad-supported content, preferences exist among Singaporean consumers and advertisers regarding when and for how long these ads should appear. 

 

While consumers have accepted the contract of being served ads, streaming platforms will retain more viewers if they are closely aligned with consumer preferences, leading to greater impact for advertisers. 

 

It’s likely that for this reason, most advertisers surveyed (61%) feel that the six-to-15-second format represents the optimal length of an ad placed around content.  

 

Advertisers tend to prefer their ads to roll before a show starts (pre-roll), with 44% of those surveyed identifying this as the most effective. However, just over a third (36%) of viewers surveyed find pre-roll ads to be attention-grabbing, while just under a third (32%) find mid-roll ads generally catch their attention.  

 

While both group's preferences drop a little lower for post-roll ads, viewers are almost agnostic about pre- or mid-roll ads, despite advertisers tending to favour the former.

 

This is a great data point for advertisers to consider when picking placements. Another interesting point to note is that 44% of advertisers also found sponsored or branded content (where ads are built into the video or show itself) to be the most effective, and 36% of viewers found these to be attention-grabbing as well.  

 

While there might be an assumption that mid-roll or integrated advertising would be less preferred for viewers than pre-roll, the differences observed in Singapore are slight. 

 

Ad responsiveness and what viewers want 

 

Nexxen is passionate about OTT advertising because we know that it inspires action among viewers. 

 

When we asked viewers about their actions after viewing an ad on an ad-supported streaming platform, 36% acknowledged they had researched a product or service online, while 33% had actually visited the relevant brand’s website. 

 

 

Ads that present special offers and clear benefits are particularly motivating for viewers, demonstrating the importance of brands delivering value-driven messaging in their campaigns. 

 

Singaporean consumers are also calling for more of this. When we asked what improvements viewers would like to see in advertising on video streaming platforms, 51% identified ads that offered immediate benefits, such as discounts or free trials. 

 

Effective personalisation is another important ingredient in increasing the likelihood that ads will be noticed and acted on. Viewers (41%) also indicated this as an area where ads on streaming platforms could improve; they want more personalised ads that are relevant to their interests.

 

Beyond it being a preference for consumers, we’re finding that personalisation could definitely be improved upon in the ad-supported streaming space. While traditional personalisation campaigns would target a number of large demographic segments, the data and technology exist today to deliver much more individualised experiences. 

 

Campaigns that run on the older, segmented targeting approach will be limited compared to those using modern personalisation methods. This is a good reminder for advertisers to explore pre-campaign creative testing to refine messaging and better understand what resonates with target audiences.

 

These insights on consumer responses to ads on streaming services demonstrate that when OTT advertisements are engaging, value-focused, and targeted, they will significantly improve cut-through, piquing viewers' interest and leading them to take action.

 

Expanding the role of OTT 

 

Our research reinforces the strong case for advertisers operating in Singapore to adopt advertising on OTT services if they haven’t already.

 

Consideration factors like high engagement levels, cost motivators and the likelihood of viewers taking action after seeing ads, the Singaporean streaming landscape provides a great opportunity for OTT advertising growth.

 

We observed that 73% of Singapore-based advertisers have a positive impression of OTT advertising and expect to factor them considerably into their overall marketing mix in the next two to three years.

 

Additionally, more than a quarter of advertisers see the potential to outperform traditional media in this sector, and we expect this proportion to grow.

 

While this article has touched on some great data points and the trends that they underpin, many more insights are waiting in our new report: Navigating the Future of OTT Advertising in Singapore. I encourage you to download it and explore the complete findings. I’d love to know what you think.

 

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About Amresh Kumar

Amresh Kumar serves as Commercial Lead for Southeast Asia at Nexxen, where he drives strategic partnerships and revenue growth across the region. Amresh has diverse expertise in account management and leadership in advertising and digital media, bringing deep knowledge of programmatic advertising, influencer marketing, and cross platform campaign management.