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Tackling OTT: Understanding the Ad-Supported Over-The-Top Viewer

OTT (over-the-top) is programming and content that viewers can stream through cable – think Hulu, YouTube, even your favorite network channel typically has OTT – think NBC app. So, now imagine that advertisers have figured out a way to monetize this service. Ok, don’t imagine because it’s happened. Taking note of the growing demand for OTT content, advertisers are tailoring their content to complement the growing platform. And, that’s great because studies show that ASV OTT viewers are the most receptive to direct brand messaging.

Great. So, what is an ASV OTT viewer defined as?

• A consumer who watches video via a free streaming service with ads (ex. YouTube), a paid streaming service (ex. Hulu with ads), a streaming app that requires a cable login (ex. Spectrum) or a cable TV company based online* (ex. Sling TV)

Tell me more about the ASV OTT Audience Profile:

Characteristics: Predominately male (60%), younger (44% are ages 18-34, 37% ages 35-54), higher household income (34% with more than $75k), and married with children (49% married and 51% with children*)

• Attentive: Almost 1 in 3 people rank commercials on free ASV OTT services (such as Roku Channel or YouTube) as more pertinent, appealing and targeted than traditional TV ads*

     o The majority (two-thirds) are okay with watching ads during their programming

• Interested: Tend to appreciate the value of ads and relate to them more than Subscription Video on Demand (SVOD – think Netflix and HBO Go) viewers*

     o 90% of ASV OTT audience believes ads on free ad-supported video are the same, if not more pertinent than traditional TV ads*

     o 51% of audiences enjoy when brands ask for their input after they watch an ad

• Open-minded: Receptive to promoting brands, exploring new ones, signing up for subscriptions (and spending nearly $120 on average per month*) and watching influencers

     o 25% routinely see YouTube influencer videos*

• Cost-conscious:

     o 77% of ASV OTT viewers cited cost considerations as the number one reason to disconnect or downgrade cable subscriptions*

     o 42% of this audience ranked convenience as the second reason for cord cutting*

     o 38% rated better content than traditional TV which came in third for making the switch*

What does this mean for my brand?

As OTT and its sub-categories continue to expand, it’s important to pay attention to potential risks such as ad fraud and becoming more in sync with consumer preferences for engaging content. As digital and traditional content delivery mesh, watching industry trends and leaning on trusted advisors is imperative. Have more questions? Contact ChappellRoberts about taking your brand to the next level with OTT. We Create Change.

*Data Source: IAB Video Center of Excellence study (2018)