So, your TV station isn’t offering streaming of its newscasts, local sports, weather or any other programming produced in-house? You’re already at a big loss.
New data from the Video Advertising Bureau (VAB) show a huge jump in the number of adults aged 25-34 streaming video. Today, 9 out of 10 people in this age group are streaming something they can watch.
The VAB report dives deep into the dynamics between linear TV and over-the-top (OTT) TV viewing, as well as the benefits for marketers planning omnichannel advertising campaigns.
Ad-supported OTT is one of the fastest growing areas in video advertising, and the VAB report Linear TV and OTT: Living Together in Harmony is the latest analysis in a series of comprehensive guides to OTT video the VAB has released since March 2018.
“The VAB report answers the question marketers often have when developing a video campaign about how linear TV and ad-supported OTT work together to solidify brand identity and drive business outcomes,” the association says.
Increased Viewing Access and Interest
Many consumers have expanded their viewing to include OTT platforms and devices. Among the key statistics included in the new VAB report:
- Ninety percent of adults ages 25-34 stream video, an increase of 18% since 2016.
- Seventy-three percent of adults who watch streaming video say they watch ad-supported OTT video.
- Sixty-seven percent of households now have access to an internet-enabled TV-connected device, an increase of 10% from 2017.
- OTT-only homes comprise 10% of video households and have grown 15% over the last two years.
- Total time spent streaming OTT is up 28 percent vs. 2017.
Millennial Viewing
A custom VAB analysis finds that while linear TV is their preferred way of watching video, 36% of millennials can be reached via OTT-alone or in combination with Linear TV.
- Millennials that can be reached by a combination of linear TV + ad-supported OTT = 23%
- Millennials that can be incrementally reached via ad-supported OTT (not exposed to linear TV) = 13%
Benefits for Marketers
Marketers taking an omnichannel, end-point agnostic approach to video media planning are growing (62% vs. 29% in 2014). Although linear TV is the dominant reach and engagement delivery platform for advertising, marketers are realizing many benefits from using a combined linear TV and ad-supported OTT buying strategy.
- Viewing an ad on both linear TV and OTT platforms leads to a twofold increase in brand favorability lift.
- Most digital ads views are within OTT and are double that of smartphones (41% vs. 19%)
- Viewers spend an average of two times longer engaging with ads on CTV vs. similar ads online. The video completion rate for CTV is 25% higher than it is for desktop and mobile.
- Case studies from Samsung Ads included in the report demonstrate how a layer of data-fueled ad-supported OTT can provide incremental reach of a brand’s best prospective customers leading to improved business outcomes.
“Combining linear TV and ad-supported OTT inventory can deliver even stronger campaign results and increased business outcomes for marketers,” said VAB President/CEO Sean Cunningham. “Advertisers utilized over nine trillion premium TV ad impressions in the U.S. in 2018. Adding OTT to the media mix will extend the reach and engagement of the premium, brand-safe environment marketers are demanding in order to drive product and services sales growth.”
The complete VAB Linear TV and OTT: Living Together in Harmony report can be found here.
