In its study based on a Sept. 25-26 survey of 1,223 consumers ages 18+ in the U.S., results found that the largest audience segment of OTT video is 18-34-year-old adults with household incomes above $75,000.
The audience includes households with kids and skews more male. Nearly 73% of respondents who regularly stream video say that they have watched ad-supported OTT. Moreover, 45% of streamers report that they watch ad-supported OTT the most.
“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,” Anna Bager, EVP, industry initiatives, IAB, said in a statement. “The findings from this study can help marketers navigate their way to valuable and receptive audiences by deploying an OTT strategy.”
Indeed, the report claims respondents are not easily reached through broadcast TV or subscription-based video on demand (SVOD). More than half (52%) of ad-supported OTT viewers are cord-cutters or cord-shavers, largely due to cost (77%), while 42% cite ‘convenience/flexibility’ and 38% cite ‘better content on streaming services’ as a reason. Additionally, they spend less time watching cable than SVOD viewers.
The report found that a higher percentage of respondents 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.
Ad-supported OTT video viewers are more likely to try new brands, with 36% stating they learn about new brands/products/services from video ads. In fact, respondents said they spend more on online subscription purchases ($119 monthly vs. $89 for SVOD viewers).
“This study showcases the high value that brands should place with increased investment in ad-supported OTT video,” said Sue Hogan, SVP, research and measurement, IAB.