Untapped ad opportunity in mainstream OTT arena | Media Analysis | Business
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A survey from global ad exchange OpenX has revealed what it believes is a massive untapped OTT advertising opportunity that awaits advertisers and media buyers to better target audiences through TV ads.
Hulu HandmaidsTale 10Jan2018
In the survey, OpenX tapped The Harris Poll to survey 2,002 consumers to find that OTT is now totally mainstream with US consumers subscribing to an average of three streaming services, with half of consumers subscribing to at least one. The data showed that 61% of Americans own a smart TV and 52% use OTT services. 

All people spend more time watching OTT content than they do driving a car or talking to friends/family. Millennials who subscribe to at least one OTT service watch more than twice as much OTT content as they do live TV while fewer than two-fifths of OTT millennials plan to keep their existing cable package. In addition, 43% of those that are cutting the cord, feel that way because OTT services make traditional cable seem unnecessary. As many as two-thirds of cord-cutters say doing so has ‘noticeably’ improved their lives.

The average survey also revealed that OTT consumers own on average three devices that let them watch OTT content, and subscribe to three different OTT services. Not a single Netflix, Hulu or Amazon original is in the top 10 shows for consumers and whether it is with cable/OTT, consumers want about 15 channels, and were willing to pay around $100 in total.

Yet OpenX found that his massive demand was not being properly monetised. It calculated that in 2018, US advertisers spent around $70 billion on TV ads, yet only $2.1 billion was spent on targeted, addressable ads, otherwise known as personalised, 1:1 advertising.

The good news was that almost 70% of respondents would be willing to watch ads in exchange for either a cheaper or free version of Netflix. This makes sense given the streaming platform recently rose its prices.