In the previous blog post, we introduced to you the concept of Crawl, Walk, Run as a success-proven method for building an OTT business, and detailed what steps are involved in the first stage - Crawl.

Today we continue the journey to explore the next phase - Walk. This phase is about making calculated progress, not just moving forward. Setting a clear budget and timeline for app improvements helps you prioritize the most urgent features and functionalities without overextending your resources.

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The Walk Phase

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1. Make the most out of user data and feedback

As you enter the Walk phase, it's time to dig deeper into the data you’ve previously gathered to analyze user behavior, content performance, and technical metrics. This data serves as your compass, guiding key decisions that will shape user satisfaction and engagement.

Streaming servicer’s users are generally open to their data being collected for service improvement purposes: results from our own survey show that 69% of consumers worldwide agree to personal data collection if it leads to more relevant ads and content recommendations. Your user base is unique, with interests specific to your service. Your mission is to identify these unique engagement factors that set your audience apart and form the foundation of your growth strategy.

Understand what the data is telling you

Different data points, such as asset load time, page load time, and crash rates, can reveal where to focus on app stability and performance improvements.

Ask questions to pinpoint specific issues:

• Is the content meeting user expectations?
• How are users engaging with the app experience? 
• Which platforms or devices see the most usage? These are potential areas for further investment.
• What platforms underperform, and why?

If you include feedback tools within the app or through social media, look at improving these workflows. This will help you efficiently categorize and effectively incorporate the user content preferences into your app on the fly. Accurately classifying and identifying high-value feature requests from users will also help you expand your feature set and create stronger brand satisfaction. 

Optimize content delivery and cost control

With your Walk phase underway, another important task is to assess content engagement to balance user experience with cost efficiency. For instance, the top 15-20% of content can be cached in lower CDN tiers close to major cities, making it load quickly for large audiences. By doing this, you ensure popular content is easy to access without delays. Less popular content can remain in higher-tier servers, which costs less but may take slightly longer to load. This balance lets you deliver a smooth experience for popular shows while managing storage costs effectively.

Fill in the data gaps

Finally, consider the completeness of your data. Look for any gaps that might hinder decision-making and implement strategies to close them. A/B testing, improved feedback tools, and tracking additional user behaviors can all contribute to a more rounded dataset, supporting more informed decisions as you continue on the Walk phase.

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Example from Netflix: User data that guides content presentation

With a global audience and diverse content library, Netflix has mastered personalization to enhance user engagement through its understanding of user data. One standout tactic is its use of customized thumbnails for each title. Rather than showing the same thumbnail to all viewers, Netflix creates multiple versions for each piece of content and displays the one most likely to appeal to each viewer’s unique interests—such as highlighting romantic, comedic, or action-oriented elements. This approach subtly guides users toward content that resonates with their preferences, ultimately boosting engagement and reinforcing brand loyalty.

While you may not need this level of personalization, for more niche content, consider creating thoughtfully crafted thumbnails that showcase key themes to connect with your audience on a deeper level.

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2. Evaluate your monetization strategy and costs

Now that your service is live and attracting a steady stream of users, it’s time to evaluate its financial health. This includes comparing your revenue with costs, as well as identifying areas for improvement. Here are some key questions to help you get started:

• How does your actual average revenue per user (ARPU) stack up against projections?
• What’s the cost per install (CPI) for each new user?
• Are cloud costs exceeding initial estimates?
• How many of your ad slots are being filled and delivered to viewers?

Assessing these aspects now can help set your service on a sustainable path, uncover quick wins, and guide longer-term revenue strategies that support ongoing growth.

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Example: How to optimize ad-based monetization

Consider a streaming service that relies on advertising for revenue. Advertising faces a variety of issues including measurement, fill rate, and targeting. 

Choosing the right ad-insertion method 

Client-side Ad Insertion (CSAI) gives greater control over ad delivery but can disrupt the viewing experience and is more vulnerable to ad blockers. In contrast, Server-side Ad Insertion (SSAI) provides a smoother, uninterrupted experience by stitching ads directly into the video stream, though it can have higher setup costs and complicate measurement. Which method to go for depends on the service’s specific audience and operational priorities.

Increase ad fill rate and revenue

The ad fill rate—the ratio of ads served to ads requested—depends on factors like ad providers, demand for the ad slot, and technical challenges like ad transcoding. A higher fill rate often means more ad revenue, but increasing fill rates can be tricky without adequate demand for the streaming service. To draw more advertisers, the service needs to leverage audience data to showcase its reach, align content with audience interests, and promote its service on platforms where its viewers spend time.

For example, if targeting younger audiences, promoting on platforms like TikTok and Instagram is a good choice as they have large user bases in younger demographics. This targeted approach can help build demand, increasing the appeal of the video service to advertisers.

Better ad performance with advanced management tools

Platforms like Google Ad Manager offer robust solutions for managing ad insertion and can even guarantee a 100% ad fill rate. However, a full-fill rate isn’t always ideal if it means serving irrelevant ads. Here, frequency capping (setting view limits on specific ads) can provide a better balance, allowing users to see varied ads without becoming overwhelmed. This approach reduces ad fatigue, improves user experience, and maintains ad performance by showing fewer, better-targeted ads.

This case highlights how data insights and strategic choices in ad placement, user targeting, and platform engagement can enhance your ad-based revenue model.

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3. General recommendations:

When planning for the Walk phase, consider how your service might grow differently across various device platforms. Identify the platforms with the most active users, and consider directing more resources toward them, while scaling back on platforms with lower engagement. This same analysis applies to app features: focus on expanding popular features while evaluating whether less-used features should be removed to streamline your service.

It’s also important to understand the efficiency and challenges faced by your operational team. During this phase, it is among the top priorities that you focus on improving and stabilizing the day-to-day management of your video service (in terms of both staff and tools) as you prepare for steady growth. Identify any areas that may be falling behind. If specific tasks are causing delays, consider whether they need to be handled in-house or if outsourcing to a specialized third-party team could offer cost savings and improved efficiency.

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What to consider in the Walk phase?

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