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Dr. Peng Group's subsidiary envisions a world fully immersed in smart home technology, with barley products embedded in smart terminals. The company has established a strategic partnership with Galaxy Internet TV, focusing on soft power integration. It has developed a unique integrated marketing strategy and successfully launched the OTT family entertainment platform. Now entering the second half of its OTT journey, how should this "battle" be approached? During the GFIC2017 Global Home Internet Conference, the reporter had an exclusive interview with Tan Wei, Deputy General Manager of the company.
[Image: Tan Wei, General Manager of Home Vision World]
Dr. Peng is China's largest private telecommunications operator, specializing in telecom value-added services, security monitoring, and network media. With 212 subsidiaries worldwide, it owns China Telecom and Great Wall, the country’s largest telecommunications-neutral data center cluster. Its broadband coverage exceeds 100 million households and 300 million people, with over 1 million new users added monthly. A wholly-owned subsidiary manages the group's overall video business, including the barley OTT platform.
In 2018, the OTT market is expected to experience explosive growth. Barley OTT has already achieved impressive user numbers: 7 million cumulative users, 25 million daily broadcasts, 81% monthly active users, and a 100% terminal activation rate. By 2018, the target user base is projected to reach 15 million.
So, what are the future expectations for the OTT market? Mr. Tan believes that user scale and value realization are the two core drivers, creating new growth points for the Chinese business model. Expanding user base and monetizing user value are central to the mission of barley OTT. Over the next three years, as the user base grows, the business model will undergo significant transformation. By 2020, the entire OTT industry is expected to enter a more dynamic and competitive phase.
Barley OTT’s integrated marketing model aims to capture and retain users effectively. As OTT continues to evolve, users now have more freedom to choose content on their TVs, drawing them back into the living room and reshaping the home entertainment economy. The market value of OTT is widely recognized, and the next big shift will be for advertisers to focus not on whether to use OTT, but on how to make it more valuable.
What strategies does barley OTT have for big-screen advertising in the future? Mr. Tan explained that in 2017, barley OTT leveraged the Group’s big data center to develop a unique OMO (Online-Merge-Offline) integrated marketing model. Key advantages include:
1. Every Dr. Peng broadband user receives a barley box.
2. Coverage in first-tier cities reaches 45%.
3. Seamless integration with Dr. Peng’s cloud data center.
The OMO model features five key attributes: operator-specific strengths, access to big data centers, nationwide coverage across 200,000 communities, online-offline integration, and a blend of brand and performance marketing.
Dr. Peng’s big data center offers four capabilities: platform, data, product, and operational. It builds comprehensive user databases, analyzes behavior patterns, and targets audiences based on brand needs, significantly boosting ad effectiveness. It also enables personalized content recommendations across both online and offline channels.
Marketing strategies are divided into online and offline approaches:
**Online:**
- Open screen ads for strong brand exposure.
- Screensaver ads showcasing brand details.
- Boot screen and sub-channel recommendations for long-term visibility.
- Corner signs with program information to reinforce brand image.
- Detail page banners to enhance brand influence.
- Customized brand pages for exclusive content promotion.
**Offline:**
1. Broadband service staff connect with barley OTT users through SMS and voice announcements.
2. National brand events in 200,000 communities to boost brand awareness.
3. Product bundling: Purchase a branded product to receive 100M broadband service, increasing sales and brand loyalty.
At Home Vision World, the concept of “interpreting love with science and technology†drives innovation. By leveraging resource integration and strong brand exposure, barley OTT continues to harness the technological power of Chinese operators, shaping the future of smart home entertainment.