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

Nielsen: Americans Now Spend Nearly 6 Hours Per Day With Video

Americans’ appetite for video just keeps rising. Measurement specialist Nielsen released its Q1 2018 Total Audience Report today, finding that U.S. adults now consume 5 hours 57 minutes of video per day. That’s an increase of 11 minutes per day just in the last quarter.

Of that 5 hours 57 minutes, 4 hours 46 minutes goes to live and time-shifted TV viewing, up 2 minutes this quarter. The biggest gain is with TV-connected devices (including internet-connected devices, game consoles, and DVDs) which average 46 minutes per day, up from 40 minutes last quarter.

Video on a computer gets 10 minutes, video on a phone (either through an app or browser) gets 10 minutes, and tablets get 5 minutes, all of which are fairly flat.

Looking at Americans’ total media diet, Nielsen finds we spend 11 hours 6 minutes each day connected to some kind of media. This figure includes all internet, phone, and radio use. That’s up from 10 hours 47 minutes in the previous quarter.

Two-thirds of U.S. homes own devices that let them stream video to the television set, and 2.7 percent subscribe to a skinny bundle (vMVPD) while 64 percent subscribe to a subscription service (SVOD). Even cord-cutters and cord-nevers find plenty to watch, as over 80 percent of non-TV homes still watch video.

For more, download the full Nielsen report (registration required).

The Math of OTT: A Formula Of Addition, Not Subtraction

With 820 million connected video devices in the U.S. and hundreds of different streaming services, the over-the-top video ecosystem is about delivering more to the consumer. The Video Advertising Bureau (VAB) just released it latest report.

More…Distribution
71% of Internet users use an OTT service at least once a month

More…Content
Consumers have a voracious appetite for content, in fact a large majority of OTT HHs (70%) also have a multichannel subscription

More…Choice
Nearly one-third of OTT subscribers hold 3 or more means of accessing OTT content, an eight-fold increase over just the last two years

More…Convenience
45% of streamers say it’s important to them to be able to watch TV programs “on the go” while 81% say it’s important to them to watch TV programs whenever they want

More…Advertising Opportunities
Currently, advertising comprises 45% of all online video revenue and is projected to grow to almost 60% over the next 10 years

65% of people who use a second screen while streaming have looked up info on a product that’s been advertised in a TV show

To learn more about VAB’s competitive OTT video ecosystem, click here to download the report.