Advertising via OTT Platforms can be More Effective than Traditional TV Advertising
When consumers can view the TV shows and movies they want, at the time they want, it’s no surprise that streaming digital video on desktop and mobile devices continues to rise. With over-the-top (OTT) viewing growing in popularity, it makes perfect sense that advertising via OTT platforms is a smart way to go.
Advertising via OTT engages viewers more than TV advertising
Using OTT viewing platforms in lieu of traditional television advertising could potentially result in a higher ROI for many marketing departments. Most OTT viewers tend to be younger than television and cable viewers, making OTT advertising the perfect medium for those that are targeting the highly discerning millennial population, according to a FreeWheel report. Furthermore, unlike traditional television advertising, OTT advertising is highly effective at engaging your audience. FreeWheel states that a whopping 98% of OTT viewers engage the video ads delivered to them!1
Affluent millennials can be reached on OTT devices
Statistics continue to demonstrate that a captive audience of well-to-do millennial consumers can be reached on their desktop and mobile devices. Although these consumers are younger than traditional TV/cable viewers, their median household income is $61,200, which is $9,700 more than TV/cable viewers, according to Nielsen data cited in the FreeWheel report. What’s even more promising for marketers is that an astounding 56% of the U.S. population utilizes an OTT device at least once a month.1
Data can help you target millennials more effectively
Within the millennial market segment there is wide-ranging diversity as it relates to financial profiles. For more precise targeting, data and insights can help improve segmentation. In the “Following the Millennial Wallet” report, the top 10 cities with the highest growth in millennial households are dissimilar across income, assets, discretionary spending, credit capacity, and other attributes. For example, there is a $30,000 difference in discretionary spending between the highest average city – Washington, D.C. and the lowest average city – Virginia Beach, VA. Households in Washington, D.C. also have the highest credit balance average of $149,000, which is more than double the lowest average of $69,000 in Pittsburgh, PA.2
OTT has proven to be a viable and effective advertising medium
OTT will continue to set itself apart as a valuable advertising medium. It has become an essential platform for consuming entertainment and a viable marketing channel due to its proven ability to engage its viewers. For savvy consumer marketers, increasing adoption of OTT advertising services is a good idea, and the time is now.
What should OTT platform providers do next?
OTT providers can profile their viewer portfolios and share statistics around household or device consumption of targeted ads in order to support stronger performance from their advertising sales teams. Using data the sales teams can position OTT advertising as a more effective form of advertising compared to cable or linear TV. To help maximize the value of viewer profiling, OTT providers can leverage the data to continuously improve targeting efficacy with insights solutions based on estimated wealth, ability to pay and discretionary spend attributes. Combining your own customer data with external market and estimated consumer household income profiles helps enhance segmentation and your ability to deliver hyper-targeted viewer experiences that marketers will love.
To find out which metro areas in your footprint have had a large growth in millennials and to discover their likely financial profile, please contact us.