Ad-Supported OTT Viewers Incremental To TV

Consumers that watch ad-supported streaming over-the-top video services are largely incremental to those that watch linear TV. They are a “high-value” audience. as well, per the IAB.

The IAB released its report, “Ad Receptivity and the Ad-Supported OTT Video Viewer,” at the first edition of its NewFronts West event, held in Los Angeles Tuesday.

The IAB sought to explore who watches OTT video and determine some of the defining characteristics the audience.

The report found that viewers of ad-supported OTT services (i.e. YouTube, Crackle, Roku Channel) do not typically watch linear TV. Over half are cord-cutters or cord-shavers. In other words, they make up a largely incremental audience to linear TV.

The IAB also found that even though the primary audience for ad-supported OTT services are the “typical ad blocking demo,” skewing younger and male, they are not opposed to ads delivered through these services.

“ASV OTT viewers are more receptive to advertising than either SVOD OTT or TV Only viewers,” the report says. “Many report they enjoy interacting with ads. In fact, ASV OTT viewers think of ads on this platform as being better.”

All told, 73% of adults surveyed that watch OTT video also say they watch ad-supported OTT video, with 43% saying they watch ad-supported services the most out of their streaming options.

That suggests that while ad-free options like Netflix and Hulu remain powerful forces in the industry, there is still opportunity for ad-supported options.

The full IAB report can be found here.

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

IAB says revenues up 21% to $88B in 2017. What they don’t say: ‘not for you’

The IAB (Interactive Advertising Bureau) is out with its Q4 and 2017 year-end state of the digital advertising industry report. In a repeat of the past several years, digital advertising revenue is up. There was growth across formats and devices. And while the IAB doesn’t name names, Facebook and Google continue to suck up most of the oxygen in the room.

The data for the IAB report is collected from IAB member companies and publicly available corporate data by PwC.

Overall, digital ad revenue grew 21.4 percent to $88 billion in 2017. To put that in perspective, PwC says the revenue change in digital seen last year is greater than in the newspaper industry as a whole.

Digital video increased overall share in 2017, chipping away at search, to $11.9 billion, up 33 percent from $8.9 billion in 2016. Search still continued to grow at 17.5 percent in 2017, to $40.6 billion. Banner revenues, which includes banners, sponsorships and rich media, totaled $27.5 billion in 2017, up 23 percent from 2016.

Mobile continues to gain share, accounting for 57 percent of the overall digital ad pie in 2017, to reach $49.9 billion. That’s more than all digital ad revenues in 2014. Mobile has seen a compound annual growth rate (CAGR) of 71.4 percent since 2010. Mobile share grew across all formats, as shown in the slide from the IAB webinar on the report.

Despite mobile’s ascendance, desktop revenues still grew in 2017, with a CAGR of 6 percent over 2016.

CPMs also increased in 2017, according to data from SQAD.com shared by the IAB. CPMs for in-stream video were up 3 percent 2017 year over year to $25.22, and CPMs for display rose 6 percent to $14.72 on average.

Social media isn’t broken out as a format, but its share of revenue topped 25.2 percent in 2017, reaching $22.2 billion. Facebook, of course, accounts for the bulk of social media advertising spend in the US.

Duopoly dominance
The IAB doesn’t release data on specific companies, but the top 10 companies commandeered 74 percent of total revenues. That share among the top 10 has remained relatively consistent, says the IAB. The elephant in the room is the fact that the top two — Facebook and Google — now make up the majority of that 74 percent.

During the webinar announcing the IAB report, Brian Wieser of Pivotal Research shared his analysis of Google and Facebook’s share of the market in the US. Acknowledging there are “a lot of assumptions” that go into these estimates and that his analysis is based on gross revenue, Wieser said, “It seems clear they are taking share. [Google and Facebook] probably accounted for 90 percent of the growth. The rest probably accounted for 10 percent or so.” Weiser pegs the duopoly’s share of US ad revenues at above 70 percent.

read more here: marketingland.com

50% of Brands see Video as Key Driver of Further Programmatic Investment

The ability to connect with audiences via programmatic video advertising is seen as a key driver of further investment in programmatic advertising by 49 percent of advertisers, compared to 19 percent last year. The data was release today in IAB Europe’s ‘Attitudes to Programmatic Advertising’ report which highlighted several other changing attitudes, showing that advertisers and agencies are becoming more aware of programmatic trading’s benefits beyond targeting efficiency, programmatic stakeholders are increasingly keen to take programmatic in-house, and most players are quickly adopting new metrics to measure their programmatic campaigns.

IAB Europe’s report surveyed over 700 participants from a mix of advertisers, agencies and publishers to gauge their views on programmatic advertising. Targeting efficiencies have always been reported to IAB as the dominant drivers of programmatic investment, and this remains the case this year with 71 percent of advertisers and 78 percent of agencies listing it as such. For publishers, client demand remains the highest motivator for investment, with 71 percent of publishers calling it a key driver. But this year’s results showed increasing awareness of other benefits of programmatic across the board. Brands are much more positive about programmatic video’s potential than last year, positivity that has followed a 155 percent increase in programmatic video investment in 2016. More brands and advertisers than last year listed campaign flexibility and reduced media wastage as key business impacts of programmatic trading, and more publishers than last year cite increased control of inventory and increased media value as key impacts.

While the report listed brand safety as a dominant barrier to investment, it is still not the primary concern despite its prominence in the news. Lack of talent, cost of technology and fee transparency were all listed as barrers by more brands than brand safety was. Meanwhile more agencies are worried about lack of talent, the difficulty of training people adequately, and quality of data than are worried about brand safety.

Whatever barriers do exist though, they’re not preventing high levels of investment as 88 percent of advertisers, 93 percent of agencies and 88 percent of publishers are planning to increase their investment in programmatic advertising over the next twelve months.

As investment increases, companies across the board are increasingly taking their programmatic trading in-house. This is most evident among advertisers where 23 percent now say they handle programmatic operations in-house, compared to 16 percent in 2016. This trend is set to continue too, as 56 percent of publishers and 46 percent of advertisers that don’t already have an in-house strategy state that they are planning to develop one in the next twelve months. The biggest barrier here remains a staffing one; both sectors list hiring people with the rights skill set and training people adequately as the top two challenges of an in-house strategy.

read more here: videoadnews.com

4 Ways To Enhance Video Advertising

by Tom Alexander

New options for enhancing your video include companion banners, which can be purchased from most publishers, and sequential messaging and retargeting, which are relatively easy options that don’t require rich media-type servings.

Another option is to overlay a custom creative unit on top of your pre-roll ad that invites users to skip the pre-roll and jump straight to the content video by interacting with your brand. The benefit is being able to capture both “skip” actions and completed views.

Here are four enhancements that will help you prepare your video for repurposing across multiple channels and boost overall consumer engagement with your brand.

1. OTT Branding

While traditional advertising delivers your brand message to a viewer just once, over-the-top branding focuses on building long-term relationships that turn leads into loyal customers. Solid OTT strategies create opportunities to deliver relevant messaging to people who actually want to receive it on an ongoing basis. Instead of focusing only on broadcast placements, brands should consider adding OTT to their video strategies.

2. Sequential Messaging

Placing retargeting pixels within creative allows you to display a second message for users who have already been exposed to your campaign. And it helps keep in contact with potential customers.

Customers frequently transition between devices, which means you have to deliver your message to them multiple times. Each message should build off the previous ones, tailored to the device they’re using at any given time. The most crucial element of this tactic is identifying the same customer across multiple devices.

3. IAB Rising Stars Ad Units

Consider ways to create more engagement opportunities, one option is the IAB’s Rising Stars ad units, which are ad formats that take up more space upon opening or as the page expands.

Rising Stars can play video in the billboard or filmstrip units of a Web page to provide a more interactive experience for users. Billboard ad units appear above the main content on the page, and filmstrip units provide a large space to fit content and visual elements. These larger interactive ad units with rich content appeal to customers more than traditional ads, furthering engagement.


4. Interactive Elements With Pre-Roll

With customized interactive overlays, completion rates for video ads hit almost 95 percent.

read more here:

https://www.mediapost.com/publications/article/300674/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+video-daily+%28MediaPost+%7C+Video+Daily%29

video: Digital Buy Side Wants Audience Quality

Has the pendulum begun to swing from advertising and media’s preoccupation with digital viewability to audience quality? It’s a trend that comScore executive Aaron Fetters is seeing on the buy side—along with a keen desire to clean up “a mess” of an ecosystem.

“We finally seem to be going a little bit beyond just the discussion of viewability and fraud and getting back to how does that combine with audience,” Fetters says in an interview with Beet.TV at the IAB Annual Leadership Meeting. “I’m hearing the buy side really begin start to ask again am I getting the audience I thought I was buying.”


Now SVP, National Agencies & CPG Business at comScore, less than two years ago Fetters was on the buy side, as Director of Global Insights at the Kellogg Company. He thinks it’s a positive sign that the industry seems to be moving beyond a sole concentration on viewability, fraud and eliminating waste.

“It think we’ve probably made a lot of progress in beginning to eliminate a lot of the waste in the ecosystem, but now I’m seeing the attention turn back to it’s not enough to just know that I’m getting a quality impression,” Fetters says. “I want to know who’s seeing that impression.”

Addressing the digital ad ecosystem, Fetters expects the consolidation among ad tech providers to continue. “Clearly we’re seeing it week after week, month after month,” he says.

read more here:

http://www.beet.tv/2017/02/aaron-fetters.html