Ad-supported OTT video offers young, affluent audience to brands | OTT | News | Rapid TV News
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Brands have an opportunity to connect directly with key consumer segments through ad-supported video delivered over-the-top, according to research.
hulu 15 august 2017

According to the Interactive Advertising Bureau’s (IAB) Ad Receptivity and the Ad-Supported OTT Video Viewer report, results show that the largest audience segment of ASV OTT viewers is 18-34-year-old adults.

This segment is also likely to earn higher incomes ($75,000 or more per year). In addition, the audience includes households with kids and skews more male. Nearly three-quarters (73%) of those that regularly stream video say that they have watched ad-supported OTT. Moreover, 45% of streamers report that they watch ad-supported OTT the most.

At the same time, the report found that ASV OTT viewers are not easily reached through TV or subscription-based video on demand (SVOD). More than half (52%) of ASV OTT viewers are cord-cutters or cord-shavers, largely due to cost (77%), while 42% of ASV viewers cite ‘convenience/flexibility’ and 38% 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.

“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, EVP, 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,” added Sue Hogan, SVP, 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.”