Table of Contents Hide
- 20 OTT Platform Metrics
- Active users:
- Time spent on the platform:
- Stream starts:
- Stream completions:
- Retention rate:
- Engagement rate:
- User acquisition cost:
- User lifetime value:
- Revenue per user:
- The average revenue per paying user:
- Churn rate:
- Content retention rate:
- Subscription conversion rate:
- Subscription retention rate:
- Ad viewability:
- Ad engagement rate:
- Ad click-through rate:
- Customer satisfaction:
- Net promoter score:
- Customer acquisition cost:
As an OTT Platform, it is critical to have a grip on the success of your service. You need to be able to interpret data quickly and draw meaningful insights from it to stay ahead of the competition.
Understanding key performance indicators (KPIs) such as platform adoption, engagement rates, retention rates, revenue per user, and cost-effectiveness will give you better clarity into your overall performance.
We’ll look at 20 metrics every OTT platform should care about and discuss why each one matters for success in today’s competitive landscape.
As the OTT landscape evolves rapidly, it can take time to know what performance metrics to track.
You need to pay attention to the right indicators to get an accurate view of your platform’s success and may miss out on opportunities for improvement.
To help make things easier, we’ve put together this comprehensive list of the key 20 metrics all successful OTT platforms should track if they want authentic insights into their audience engagement and overall performance.
Read on to learn which metrics are most important — from customer churn rate to cost per subscriber — and why they’re essential for understanding user behavior on your platform.
20 OTT Platform Metrics
Active users of an Over-the-Top (OTT) platform can define as consumers who have access to the forum and use it regularly. These individuals are essential to measuring engagement and success, as they can utilize to assess the performance of the platform while providing an understanding of how people are using it.
The number of active users is determined by the number of people actively engaging with or consuming content from the platform. It includes interactions, such as logging in, watching videos, or playing games. This figure is referred to as ‘monthly active users’ (MAUs) or ‘daily active users’ (DAUs).
The MAU figure gives insight into how many people consistently interact with the OTT platform over a long period, while DAUs provide information about short-term user engagement levels. By tracking both figures, we can better understand engagement and determine whether the audience is growing or declining.
Apart from tracking MAU/DAU figures, there are other ways to measure active user engagement on an OTT platform. For example, you can monitor pageviews per session which give insights into activity within each session; average watch time – i.e., how long someone watched before finishing; return rate – whether viewers continue viewing different content; and video progress – i.e., if they stopped watching halfway through or completed it entirely. All these metrics provide a more comprehensive view of user engagement trends on OTT platforms, giving valuable information about consumer behavior patterns and preferences.
Time spent on the platform:
Time spent on Over-the-Top (OTT) platforms is increasing every day. It refers to the streaming services, content, and other activities that users can access online through the internet instead of a traditional cable or satellite connection.
The OTT industry is booming, with more than 700 million subscribers worldwide in 2020, according to the Digital TV Research report. It makes OTT one of the fastest-growing markets globally.
The time consumers spend on these platforms has increased considerably over the years due to the convenience and accessibility they provide. For example, a survey conducted by Deloitte in 2019 revealed that 63% of respondents stream content using OTT services at least once a week. It is significantly higher than the 25% reported in 2018.
Recent studies have found that people spend an average of two hours per day watching content on an OTT platform, with some even spending more than three hours per day.
Consumers are using multiple OTT services simultaneously and engaging in other activities such as gaming, browsing social media networks, and so forth while streaming videos and other content on these services.
It suggests that customers increasingly embrace a “multi-screen” approach to consuming digital media across different devices rather than relying solely on TV sets for their entertainment needs.
This trend is further accentuated by providers offering exclusive content and additional features such as Augmented Reality (AR). All this demonstrates how much time consumers are now dedicating to exploring what different OTT platforms have to offer them.
Stream starts are an essential feature of any OTT (over-the-top) platform. Essentially, they are the way that viewers gain access to streamed content. Stream starts as the first point of contact when a viewer begins watching a stream. It could be through a launch pad or a direct web address entry. Stream starts are essential for several reasons when it comes to streaming services.
For one, the stream starts directly impacts how much time it takes for viewers to begin watching content. The faster and easier viewers start streaming content, the more likely they will stay and protect longer. Additionally, the stream begins also help with retention rates as it makes it easier for viewers to quickly jump between different titles or genres to find something that suits their interests.
Furthermore, having streamlined start options also helps with overall usability and website navigation since users don’t have to fumble around trying to find what they want or where they’re trying to go on the site. Finally, users rely heavily on familiarization. Therefore, introducing features such as stream starts can give them a sense of comfort in navigating a streaming service’s interface quickly and efficiently so that they can get right into their desired content without any hassle.
Stream completions are an important and valuable feature for any Over-the-Top (OTT) platform. It is a way of providing users with content that they may have missed while streaming or that they may be interested in watching at a later time. Stream completions enable viewers to continue their viewing experience on the same platform even after the original stream has ended.
This feature allows viewers to pause, rewind and fast-forward through shows and movies, create personalized playlists of their favorite titles, and quickly resume streaming where they left off.
For OTT providers, stream completions offer an excellent opportunity to improve user engagement and increase viewership. They can use the data gathered from stream completion activities to tailor content recommendations and suggest titles that match each viewer’s interests. It helps keep customers engaged with the platform for extended periods and can lead to increased provider revenue.
Additionally, it encourages customers to watch more content from different genres to expand their streaming library over time. It is beneficial for OTT platforms that operate on a subscription model, as it encourages users to keep their subscriptions active to access the wider variety of content available on the platform.
A retention rate for an OTT platform measures how many of its viewers continue to use the service or product over a certain period. It is measured over a week, month, quarter, and year. An OTT platform’s retention rate is an important metric that helps providers understand their customer satisfaction and engagement levels. A higher retention rate indicates that customers are more engaged with the content they’re watching and therefore spending more time and money on the platform.
To accurately measure an OTT platform’s retention rate, providers must consider the total number of users in a given period and compare it to those who return after that period. Generally speaking, this metric is used to calculate in terms of days, but now providers have started measuring it in weeks or months to get more accurate data points. Factors such as user experience and quality content can significantly influence the overall retention rate of an OTT platform. For example, media with higher user satisfaction ratings tend to have higher retention rates than those with lower ratings.
Additionally, platforms offering exclusive or specialized content will watch to see increased retention rates due to increased audience engagement and loyalty towards the specific content type or genre provided by them. By understanding what drives viewer engagement on their platforms, providers can make changes that help increase the overall OTT platform’s retention rate and secure long-term success for their business.
The engagement rate for OTT (Over-the-Top) platforms has seen tremendous growth in the past years. OTT refers to content delivery services such as Netflix, Hulu, Amazon Prime Video, and others offering streaming movies and TV shows directly to a user’s device. Demand for these platforms has driven a corresponding increase in engagement rates.
According to recent reports, the engagement rate for OTT platforms is between 50-60%. This means that roughly half of all users who sign up for an OTT service are actively engaged at least once a month. Additionally, more than two-thirds of all subscribers log on once per week or more frequently. This sustained engagement demonstrates users’ intense loyalty and satisfaction with these services.
Moreover, the high engagement rate indicates that users are willing to pay for content from these platforms, expecting to receive quality entertainment experiences in return.
In addition to high customer engagement rates, many studies have found that content providers also experience significant financial success when utilizing OTT platforms compared to other distribution channels like television networks and movie theatres. It is mainly due to the massive number of viewers that can reach through streaming services and the convenience offered, allowing users to access content online and through mobile devices.
Furthermore, because OTT services enable direct communication between content creators and their audiences, they provide opportunities for increased audience participation, further boosting viewership numbers and revenues.
User acquisition cost:
The User Acquisition Cost (UAC) for an OTT platform can be tricky to calculate. Depending on the scale of the OTT platform, user acquisition costs can vary greatly. When calculating the UAC for an OTT platform, it is essential to consider factors such as marketing budgets, ad placement, and audience reach.
Regarding marketing budgets, large streaming platforms are better equipped to invest more money into their campaigns to acquire new users. It could include higher ad spend or running promotional campaigns with a higher reach. With increased ad spend, these platforms have the potential to acquire more users faster than those with lower budgets.
In addition to the budget, it’s also important to consider where ads are placed and how many people they reach. Ads placed on social media or other popular websites will likely result in more users being acquired due to the more significant number of people exposed to them.
Aside from marketing budgets and ad placement, it is also essential to consider other factors, such as user retention rates and onboarding processes, when calculating the UAC for an OTT platform. Platforms with longer onboarding processes may require more resources and time to bring new users on board successfully; however, this could also lead to higher user retention rates in the long run if done correctly.
Additionally, platforms with well-designed onboarding experiences can acquire users faster due to their simplified processes, making it easier for new users to get started. All these factors must consider when determining a platform’s UAC to gain accurate results and develop a successful user acquisition strategy for an OTT platform.
User lifetime value:
User lifetime value (LTV) is a critical metric in determining the success of an over-the-top (OTT) platform. It reflects the total revenue generated from a user over their lifetime, making it a key indicator of long-term success. In an OTT context, user LTV is calculated by looking at a customer’s average revenue per user or ARPU and then multiplying that by the average number of months/years, they remain active on an OTT platform. This results in an estimated value for how much money each individual will bring in over their lifetime.
To maximize user LTV, OTT platforms must focus on customer acquisition and retention strategies, such as offering personalization features, providing rewards and discounts to loyal customers, leveraging predictive analytics to identify trends, and delivering content tailored to individual users. Additionally, they should optimize their pricing models by segmenting different users into different plans; this way, they can offer more competitive prices to new customers while still making a profit off of existing ones.
Finally, OTT platforms need to constantly measure the performance of their business and make sure they are making progress toward their goals; calculating user LTV is critical for doing so. Every OTT provider can become successful over time by taking these steps and understanding how user LTV works for its platform.
Revenue per user:
The revenue per user for OTT platforms is a critical metric when determining the financial success of the platform. For any business, it is essential to understand how much each user contributes to their respective bottom line. OTT platforms are no different, and depending on their services, they can generate substantial profits due to their users’ engagement and loyalty.
An OTT platform’s revenue per user typically refers to the average amount of money generated by a single consumer over time. It may be calculated annually or over several months, depending on the individual platform. It’s important to note that the figure reflects not only the cost generated by subscription fees or purchases made within the forum but also additional sources of income, such as advertising, in-app purchases, and commissions from referrals or collaborations with other companies.
As well as considering subscription fees and other transactions within the app, another critical element to consider when calculating an OTT platform’s total revenue per user is its ability to drive engagement amongst its users. Venues with high levels of customer satisfaction often experience more consistent usage, which helps keep their customers engaged with the content and encourages them to spend more money on new features or services the platform offers.
Additionally, well-crafted campaigns tailored towards specific audiences can help boost overall revenues for certain OTT platforms that cater to niche markets or even international ones where growth opportunities are abundant.
The average revenue per paying user:
The average revenue per paying user (ARPPU) for an over-the-top (OTT) platform varies greatly depending on the nature of the forum and its overall success. Generally, OTT services, such as streaming media and gaming companies, tend to have higher ARPPU values than subscription-based services or eCommerce platforms.
On average, successful OTT platforms have an ARPPU of between $3 and $9, while more established players like Netflix and Amazon Prime can generate up to $15 or even more per paying user.
In addition to the platform type, user engagement and churn rate also affect the ARPPU. Companies that offer attractive discounts on subscription fees can draw in new users in large numbers. However, if they fail to engage their users through meaningful content or value-added services, there may be a high rate of churn, which would lower their overall ARPPU.
To ensure their service is successful, OTT providers must focus on creating a compelling product offering with high user engagement. Other factors that influence an OTT’s ARPPU include pricing models (pay-per-view vs. subscription), usage plans (including tiered plans for different levels of subscribers), and how effectively the company monetizes its service through advertising partnerships or other revenue streams.
The Churn rate for OTT Platforms is a crucial metric for streaming services to measure the success of their platform. It shows how many users are leaving the service, or in other words, ‘churning.’ A high churn rate means the service is losing customers and may need adjustment. The average OTT churn rate can range from 5-20%, but there are some cases where it can reach as high as 40%.
Several factors affect the OTT churn rate, including user experience, content selection, streaming quality, device compatibility, pricing structure, and customer service. For instance, if an OTT platform offers a large selection of content but has poor user experience or low stream quality, customers may be more likely to leave.
Similarly, if the device compatibility or pricing structure is competitive, this could lead to subscribers staying on the platform. Additionally, poor customer service will increase a platform’s churn rate by creating negative feelings toward the brand, which could result in people unsubscribing from their subscription plans. To reduce the churn rate, companies should focus on improving their platforms in these areas and invest time into understanding their customers’ needs to provide a better overall experience.
Content retention rate:
The content retention rate for the OTT Platform is a critical metric in determining the success and longevity of an OTT platform. It measures how long customers keep using the services offered compared to other platforms and is a strong indicator of customer loyalty. The content retention rate is calculated by taking the total number of active users within an allotted time (usually 30, 90, or 360 days) divided by the total number of users at the beginning of that same period.
Content retention rates for OTT Platforms are typically higher than those seen in traditional broadcast media due to their on-demand nature and convenience. For example, customers don’t need to be available for a specific time or date to watch something, as they can watch whenever they choose, meaning that content is more likely to be consumed when it’s convenient for them.
Additionally, consumers don’t need to wait for their favorite shows or movies to come back; they can watch something new whenever they want. This convenience factor helps drive higher content retention rates for OTT Platforms compared to broadcast media. Furthermore, platforms such as Netflix and Hulu provide personalized recommendations based on user preferences which help increase engagement with content and boost content retention rates even further.
Subscription conversion rate:
The subscription conversion rate for the OTT platform is an important metric to measure and reflects the business’s success. It is calculated by dividing subscribers by the total number of visits to the platform in a given period. Generally, a higher subscription conversion rate indicates that more visitors are signing up for paid subscriptions, which is beneficial for any OTT platform.
To achieve a higher subscription conversion rate, OTT platforms must provide quality content with well-defined value propositions that appeal to their target audience. Additionally, they should have an optimized user experience and an effective marketing strategy that resonates with their users. For instance, offering discounts on specific plans or providing personalized recommendations can be used as incentives to motivate users to subscribe.
Furthermore, platforms should focus on customer service and satisfaction to keep subscribers engaged and increase loyalty toward the brand. By leveraging consumer insights and analytics, they can identify where customers may be hesitating and adjust accordingly. All these strategies contribute towards increasing the subscription conversion rate and ultimately generate more revenue for the business.
Subscription retention rate:
The subscription retention rate for the OTT platform is significantly higher than that of other streaming services. It is mainly due to the diverse range of content available on the platform and its focus on customer service. Additionally, the platform’s low cost relative to other streaming services makes it an attractive option for those looking to save money while still receiving quality content.
The subscription retention rate for the OTT platform reflects a commitment to providing users with an enjoyable experience. The user interface of the website and app are both highly intuitive, allowing viewers to quickly find what they’re looking for without having to wade through confusing menus or complex navigation systems.
Furthermore, customer support is always available if viewers have questions or issues with their viewing experience. The platform also offers a wide variety of movies, shows, and documentaries from significant networks and indie filmmakers, giving viewers plenty of options for entertainment. Finally, its monthly price point is more affordable than its competitors, making it more accessible to viewers on tighter budgets. All these factors have contributed to its impressive subscription retention rate.
Ad viewability for the OTT Platform is a key metric used to measure the effectiveness of digital advertising campaigns. This metric measures whether or not an advertisement has been seen by a viewer and can apply to any content consumed on the OTT platform. Ad viewability is calculated in terms of impressions, defined as when an ad appears within the user’s viewing area for more than two seconds.
Therefore, it helps advertisers understand how many people have seen their ads and if they have been exposed to them long enough to register the campaign’s message.
Advertisers use ad viewability metrics to gain insights into their campaign’s performance, allowing them to make modifications and optimize their ads accordingly. By understanding what works and doesn’t, they can better target potential customers and increase their Return on Investment (ROI). In addition, it helps them adjust creative elements like format, length, or placement to maximize visibility.
It also enables brands to monitor whether ads have been delivered as expected – helping them eliminate waste due to fraudulent traffic or low-quality placements that need to meet their goals. Ultimately, ad viewability provides valuable insights that allow marketers to serve their customers better and ensure maximum success for their online advertising campaigns.
Ad engagement rate:
The ad engagement rate for the OTT Platform is an important metric to measure the success of a campaign or advertisement. It refers to the percentage of viewers actively engaging with the ad, such as clicking on a link, downloading an app, or purchasing a product. It’s a crucial metric for measuring an ad campaign’s effectiveness and whether it resonates with consumers.
The OTT Platform’s engagement rate is measured by tracking how many viewers interacted with an advertisement during their viewing session. It could mean watching a video ad all the way through, clicking on an interactive element within the video, or completing an action after clicking the advertisement, like downloading an app or subscribing to a service.
The number of times viewers interact with ads in each viewing session can use to determine the engagement rate. Most platforms also track ‘viewability’ – meaning they follow whether viewers have seen the ad as well as if they have interacted with it. An increase in viewability will often result in increased engagement rates too.
Measurable ad performance data helps determine which campaigns are most successful and where money should spend to get better results. Advertisers can use this data to make informed decisions about what media they choose and adjust their strategies accordingly.
By understanding user engagement across various demographics and devices, marketers can gain insight into what works best for their target audience and optimize their efforts. Furthermore, understanding how users interact with content helps improve product experiences, ultimately leading to higher customer satisfaction.
Ad click-through rate:
The ad click-through rate for an OTT platform can be tricky to measure. It is mainly because it’s a relatively new medium, and there are many ways to track clicks accurately. However, some experts suggest that the average click-through rate on an OTT platform hovers around 0.50%. Numerous factors can affect this number, including the placement of the ad within the content, its relevance to viewers, and whether or not viewers have been exposed to it before. Additionally, the type of ad used can have an impact; for example, interactive ads tend to have higher click-through rates than static ones.
Regarding cost-per-click (CPC), OTT platforms are typically much more cost-effective than other digital mediums. It makes them a good choice for advertisers looking to maximize their budget while still reaching a large audience. t
Targeted campaigns with higher engagement rates yield better results than those without any targeting elements; precise targeting can help increase CTRs and improve ROI significantly. Advanced analytics tools such as machine learning algorithms can further optimize campaigns to achieve maximum performance from an advertiser’s investment in digital marketing efforts on OTT platforms.
Customer satisfaction for the OTT Platform is an important concept since it provides a means for companies to gauge the success of their services. It can measure in various ways, such as customer surveys, ratings, reviews, or customer feedback on social media. The ultimate goal is to understand how customers feel about their experience with the product or service so that businesses can make improvements and adjustments accordingly.
Customer satisfaction with the OTT Platform will depend on several factors, including how easy it is to use and navigate, the quality of content they can access, the reliability of streaming services, value for money spent, the customer support offered by the company, and overall user experience. To provide high levels of customer satisfaction, companies must invest in research and development of their platforms and ensure reliable service delivery.
They should also ensure quick response times when customers reach out with inquiries or complaints and offer tailored rewards or discounts based on usage patterns. Other important considerations include marketing efforts such as promotional campaigns and product demonstrations which help enhance user experience and build customer trust. Providing a safe environment where subscribers can access content without fear of being cyber-attacked should also be considered when measuring an OTT platform’s customer satisfaction.
Net promoter score:
The Net Promoter Score (NPS) for an Over-the-Top (OTT) Platform measures customer loyalty and satisfaction. It is based on the responses to a single survey question, “How likely are you to recommend this platform to a friend or colleague?” The NPS score can range from -100 to +100, with higher scores indicating greater customer satisfaction, loyalty, and brand advocacy levels.
An OTT platform’s NPS score is calculated by subtracting the percentage of detractors (those who respond with 0-6) from the percentage of promoters (those who respond with 9 or 10). A score above 0 indicates that supporters outnumber detractors, while a score below 0 means the opposite. An NPS score of 50 or more generally shows high customer satisfaction and loyalty levels.
Generally speaking, an NPS over 75 is considered an excellent score for any business. The key for any OTT platform is to understand its customer base and use insights from the NPS data to make informed decisions about product offerings, pricing models, new feature development, and improvements in customer service experience.
Moreover, an OTT platform should track its NPS over time to assess how it responds to changes in the market. It will give them valuable insight into areas where they can focus their efforts to serve their customers better and stay ahead of the competition.
Customer acquisition cost:
The customer acquisition cost for an over-the-top (OTT) platform can be the total cost associated with onboarding and acquiring a new customer. This cost typically comprises marketing expenses such as advertising, search engine optimization (SEO), content creation, influencer campaigns, etc.
Additionally, the customer acquisition cost includes costs related to customer service, such as developing effective onboarding processes or providing customer support. To determine the value of a new customer to an OTT platform, businesses must look at both direct and indirect costs associated with acquiring each new user.
Businesses need to consider their current infrastructure and operational costs when considering the customer acquisition cost for an OTT platform. Media may have different infrastructure requirements depending on their individual needs.
For example, some OTT platforms may require special development teams or additional hosting fees to serve customers effectively. Additionally, if businesses plan to expand their operations geographically, they’ll likely face additional infrastructural costs to meet local market conditions.
Alongside these technical considerations, businesses must consider how they will engage and retain newly acquired customers through compelling content strategies and engagement techniques. It could include personalization initiatives such as utilizing machine learning models or creating tailored experiences based on user behavior data.
Businesses should also focus on ensuring users have access to relevant content right from the start; this could involve creating video playlists tailored for specific interest groups or suggesting content based on users’ past viewing habits. Finally, it’s also crucial for businesses to provide adequate support throughout the user journey to ensure that any issues are quickly resolved, and customers remain engaged with the OTT platform in the long run.
As the adoption of streaming services grows, so does the need for a detailed understanding of how users interact with them.
The 20 metrics highlighted in this article provide critical insights for marketing professionals at OTT platforms.
By tracking these metrics, you can develop a holistic view of your platform’s health and identify areas for improvement.
If you need help developing or refining your marketing strategy, our team of consultants can assist you.
We have experience helping OTT platforms grow their user base and achieve their business goals. Contact us today to learn more about our services.