Study: Consumers Who Watch Ad-Supported OTT Are Younger, Higher Income

It turns out there’s a large group of Americans who don’t watch just Netflix or other ad-free video services: 45% of consumers who regularly watch video online say they mainly watch ad-supported over-the-top services.

That’s according to a new study from the Interactive Advertising Bureau. The online-advertising trade group’s research also found that the largest audience segment of ad-supported OTT viewers comprises adults 18-34 years old, and on average they have higher incomes than the overall U.S. population (with 34% of ad-supported OTT viewers reporting income of $75,000 or more).

In addition, consumers who mostly watch ad-supported OTT services skew higher among men; black and Asian consumers; and households with children, the IAB study found.

As a cohort, ad-supported OTT viewers are harder for advertisers to reach through conventional TV (while pure subscription-based video-on-demand services like Netflix, Amazon Prime, or HBO Now do not carry advertising). On average, primarily ad-supported OTT viewers watch 10.4 hours of cable TV per week versus 14.7 hours among TV-only viewers. Meanwhile, about 52% of ad-supported OTT viewers are cord-cutters or cord-shavers, with over one-third citing “better content on streaming services” as a reason for choosing ad-supported OTT over other services.

IAB released the findings at its inaugural NewFronts West advertising event in L.A., which runs Oct. 9-10. Sue Hogan, the trade group’s SVP of research and measurement, said the study points to “the high value that brands should place with increased investment in ad-supported OTT.”

The IAB’s study defined ad-supported OTT video viewers as those who watch video through a free streaming service with ads (such as YouTube, Pluto, the Roku Channel, Crackle or Vevo); via an online pay-TV provider (e.g., Sling TV, DirecTV Now); through a streaming app that requires a cable, satellite or telco login (e.g., Discovery Go, FX app, WatchESPN, Comcast Xfinity); or through a subscription-streaming service that includes ads (e.g., Hulu or CBS All Access with limited ads).

The IAB study also found that the predominantly “ASV OTT” cohort showed higher ad receptiveness than those who mostly watch SVOD or only watch TV — which is not surprising, but a key point for marketers. About 59% of ASV OTT users agreed that “I don’t mind seeing ads if I’m getting to watch content when I want,” compared with 47% of primarily SVOD viewers and 34% of TV-only viewers.

In addition, ad-supported OTT viewers reported spending more on online subscription purchases — $119 per month — than subscription VOD viewers, at $89 per month. ASV OTT fans also are more likely to follow social influencers: 25% said they regularly watch videos from YouTube personalities, vs. 17% of SVOD-dominant consumers and 5% of TV-only viewers.

read more here: variety.com

YouTube ditches creators, targets TV users and reaches 25% of the world

YouTube ditches creators, targets TV users and reaches a quarter of the world

At its annual Brandcast event last week, YouTube said more than 1.8 billion users – almost 25% of the world’s 7.6 billion population – log into the streaming platform each month. It represents a 20% increase from the year before and a substantial increase from its total in 2013, of 1 billion.

Alphabet – which owns Google, YouTube’s parent – earned more than $95 billion in advertising revenue last year. Estimates put the total amount of online ad revenue at around $300 billion. EMarketer estimates that around 11% of this revenue comes from YouTube. If true, this would make YouTube one of the largest advertising platforms in the world.

YouTube targets TV users

Brandcast did more than demonstrate the immense influence and scale of YouTube; it also showed a change of strategy. The company announced, “over 150 million hours of YouTube watch time was recorded per day on TV screens alone.”

“The YouTube content is actually scaling for TV incredibly well,” said YouTube Chief Business Officer Robert Kyncl. “It is our fastest growing screen of all screens.”

The company will add TV screens to the list of devices that advertisers can target through AdWords and DoubleClick Bid Manager. For brands chasing cord-cutters, the company is introducing a new audience segment called “light TV viewers.” Targeting the new segment will allow advertisers to reach YouTube viewers who watch most of their videos on the television.

Companies can now buy TV inventory through the Google Preferred ad program. vMVPD users subscribers Q4 2017Google is adding the TV network ad inventory it gets through YouTube TV to the program. The move will allow brands to target audiences watching the most popular YouTube content and traditional TV shows in a single campaign.

YouTube touted its new vMVPD service, YouTube TV, as momentous. Though it hasn’t revealed monthly subscribers, it said the service is now available in more than 85% of US households. It is also the largest vMVPD service available. According to data from TiVo, 9% of consumers used the service in Q4 2017, more than double its biggest rival.

However, television wasn’t the only strategic change targeted by the platform.

YouTube ditches its creators for celebs

It’s no secret that YouTube enjoys massive popularity with the young Gen Z demographic. These children and young adults idolize internet sensations such as Logan Paul, Pewdiepie, and Liza Koshy. However, during Brandcast these stars were nowhere to be found. There was, however, no shortage of familiar faces.

Will Smith, Priyanka Chopra, Kevin Hart, and Demi Lovato were just some of the stars at the event as YouTube looked to “shine a light on human stories that inspire us.” The top Hollywood talent took center stage, while it was tough to find a single YouTube creator in the mix. YouTube announced new videos and partnerships with these celebrities. For example, Will Smith will bungee jump from a helicopter, and Demi Lovato will star in a show to build awareness, both efforts to help highlight the inspiring stories campaign.

read more here: nscreenmedia.com