Brands Can Build Relationships with Younger, High-Income Consumers via Ad-Supported Over-The-Top Video, According to IAB Research

Study Finds Buyers Can Gain Incremental Reach by Targeting OTT
Ad-Supported Video Viewers

LOS ANGELES–(BUSINESS WIRE)–The Interactive Advertising Bureau (IAB)
today, at NewFronts
West
, released “Ad Receptivity and the Ad-Supported OTT Video
Viewer,” an in-depth study that 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%) of those that regularly stream video say that they have watched
ad-supported OTT. Moreover, 45 percent 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%) of ASV OTT viewers are
cord-cutters or cord-shavers, largely due to cost (77%), while 42
percent of ASV viewers cite ‘convenience/flexibility’ and 38 percent
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 optimize their spend on digital media—and the findings of
this report underscore that commitment.”

To download the study, please go to www.iab.com/ad-supported-video-ott.

Methodology

Two online surveys were fielded among MARU/Matchbox’s Springboard
America online panel (~250,000 U.S. members). 1.) Omnibus among 1,500
nationally representative U.S. sample to determine the profile of the
Ad-Supported OTT Video Viewer; fielded August 10, 2018. 2.) A study
among 1,223 consumers ages 18+ in the U.S., with age/gender quotas set
to reflect viewership profiles from the omnibus study; fielded September
25 – 26, 2018.

About the Digital Content NewFronts

The Digital Content NewFronts is an annual series of events founded by
AOL, Digitas, Google/YouTube, Hulu, Microsoft, and Yahoo in 2012. It is
committed to the creation of valuable partnerships between brands and
native digital content. Our mission is to shape the NewFronts into a new
and practical marketplace for connecting the wealth of digital content
and content creators to brands and their media and marketing agencies.

About IAB

The Interactive Advertising Bureau (IAB) empowers the media and
marketing industries to thrive in the digital economy. Its membership is
comprised of more than 650 leading media and technology companies that
are responsible for selling, delivering, and optimizing digital
advertising or marketing campaigns. The trade group fields critical
research on interactive advertising, while also educating brands,
agencies, and the wider business community on the importance of digital
marketing. In affiliation with the IAB Tech Lab, it develops technical
standards and best practices. IAB and the IAB Education Foundation are
committed to professional development and elevating the knowledge,
skills, expertise, and diversity of the workforce across the industry.
Through the work of its public policy office in Washington, D.C., IAB
advocates for its members and promotes the value of the interactive
advertising industry to legislators and policymakers. Founded in 1996,
the IAB is headquartered in New York City and has a San Francisco office.

Contacts

IAB
Media
Laura Goldberg
347-683-1859
laura.goldberg@iab.com

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