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Dr. Peng Group's subsidiary envisions a fully connected smart home ecosystem, with barley products embedded in smart terminals. The company has formed 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. As the OTT market enters its second half, how should this "competition" be approached? During the GFIC2017 Global Home Internet Conference, we had an exclusive interview with Tan Wei, Deputy General Manager of the company.
![Picture: Home Vision World General Manager Tan Wei]
Dr. Peng is China's largest private telecommunications operator, engaged 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 neutral data center cluster. Its broadband network covers over 100 million households and 300 million people, with a monthly increase of one million new users. A wholly-owned subsidiary is responsible for the group’s overall video business.
In 2018, the OTT market is expected to experience explosive growth. Barley OTT has achieved impressive user numbers, with 7 million cumulative users, 25 million daily broadcasts, and 81% monthly live users. The terminal activation rate is 100%, and the target user base is projected to reach 15 million by 2018.
So, what are the future market expectations for OTT? Mr. Tan believes that user scale and value realization are the two core drivers, which will bring new growth points to the Chinese business model. Expanding user base and monetizing user value are central to the company’s mission. 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 mature and fragmented stage.
Barley OTT's integrated marketing model aims to capture and retain users effectively. With the rise of OTT, users now have greater freedom to choose their favorite content on TV, bringing audiences back to the living room and reshaping the living room economy. The market value of OTT is widely recognized, and the future trend is that advertisers will no longer question whether to invest in OTT, but rather how to make it more valuable.
To address big-screen advertising challenges, Barley OTT has developed a unique OMO (Online-Merge-Offline) integrated marketing model. This model leverages Dr. Peng’s big data center and offers several key advantages:
1. Every Dr. Peng broadband user receives a barley box.
2. Coverage in first-tier cities reaches 45%.
3. Seamless connection with Dr. Peng Group's cloud data center users.
The original OMO approach features five distinct elements: unique operator attributes, strong support from 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 provides four core capabilities: platform, data, product, and operational. It builds comprehensive databases for broadband and OTT users, integrating global data to analyze user behavior and tailor campaigns for different brands. This enhances the effectiveness of advertising and enables personalized content recommendations for users.
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 first screen recommendations for long-term visibility.
- Corner signs with program information to reinforce brand image.
- Detail page banners to enhance brand influence.
- Customized brand special pages to create exclusive content sections.
**Offline:**
1. Seamless integration between broadband and barley OTT users through service workers.
2. National brand collaborations in 200,000 communities to boost brand awareness.
3. Product bundling: purchasing a brand product grants access to 100M broadband service, promoting sales and brand loyalty.
At Home Vision World, the concept of "interpreting love with science and technology" drives innovation. By leveraging resource integration and brand exposure, Barley OTT continues to harness the technological power of Chinese operators, shaping the future of smart home entertainment.