An in-depth study from the Interactive Advertising Bureau (IAB), Ad Receptivity and the Ad-Supported OTT Video Viewer, reveals an opportunity for brands to connect directly with key consumer segments through ad-supported video (ASV) delivered over-the-top (OTT).
Results show that the largest audience segment of ASV OTT viewers is 18-34-year-old adults and they are likely to be higher income ($75+K). In addition, the audience includes households with kids and skews more male. Nearly three-quarters (73 per cent) of those that regularly stream video say that they have watched ad-supported OTT. Moreover, 45 per cent of streamers report that they watch ad-supported OTT the most.
ASV OTT viewers are not easily reached through TV or subscription-based video on demand (SVOD). More than half (52 per cent) of ASV OTT viewers are cord-cutters or cord-shavers, largely due to cost (77 per cent), while 42 per cent of ASV viewers cite ‘convenience/flexibility’ and 38 per cent cite ‘better content on streaming services’ as a reason. Additionally, they spend less time watching cable than SVoD viewers. ASV OTT viewers report watching more video OTT than they did a year ago.
Important for brands is that ad receptiveness is stronger for ASV OTT viewers than those who watch SVoD or TV-only. A higher percentage of the ASV OTT segment also enjoy interacting with ads in comparison to SVOD viewers, providing opportunities to engage and develop one-to one-relationships with these households and consumers.
The study also found that ASV OTT viewers are more likely to try new brands, with 36 percent stating they learn about new brands/products/services from video ads. In fact, ASV OTT viewers report spending more on online subscription purchases ($119 per month vs. $89/mo for SVoD viewers)—from meal kits to contact lenses—making them an ideal target for direct-to-consumer marketers.
In addition, ASV OTT fans are more likely to follow social influencers than SVoD and TV-only viewers, pointing to an important part of the media mix that marketers should pay attention to if they want to reach this audience.
“Advertisers have a real opportunity to make connections with younger consumers, who are likely to have higher-income, through ad-supported video delivered over-the-top,” said Anna Bager, Executive Vice President, Industry Initiatives, IAB. “The findings from this study can help marketers navigate their way to valuable and receptive audiences by deploying an OTT strategy.”
“This study showcases the high value that brands should place with increased investment in ad-supported OTT,” said Sue Hogan, Senior Vice President, Research and Measurement, IAB. “IAB research is dedicated to helping brands optimise their spend on digital media—and the findings of this report underscore that commitment.”