The Interactive Advertising Bureau (IAB) defines OTT as: A device that can connect to a TV (or functionality within the TV itself) to facilitate the delivery of internet-based video content. According to eMarketer, over 58% of the US population uses an OTT device at least once a month.
A new FreeWheel report divides these devices into three groups;
- Attached Devices (84% of all Ad Views): Devices that plug into or pair with a television set to stream digital content. These devices are mainly used for digital content consumption. Examples: Apple TV, Chrost, Roku and Amazon Fire TV
- Gaming Consoles (11% of all Ad Views): Devices that include home video game systems that also have built-in entertainment platforms and apps. Examples: PlayStation, Xbox and Wii. Video gaming typically drivhe purchase of these devices, but many owners are increasingly using these devices for video streaming.
- Smart TVs (5% of all Ad views): Internet-enabled television sets that have the ability to receive traditional linear feeds as well as stream on-demand content without any additional devices.
The Freewheel Report covers several of features of OTT platforms for marketers including these two:
- OTT allows marketers to reach viewers who are harder to find on traditional TV, including affluent millennials and cord-cutters. The median OTT viewer is 23 years younger than TV viewers and yearly median housd income is nearly $10,000 higher than traditional TV households (based on Nielsen DAR measurement of audience composition by show on desktop and mobile devices, extrapolated to OTT based on the show mix of Oevices).
- OTT is likely to result in higher levels of ad exposure compared to other platforms. Viewers on OTT devices can’t switch to another tab when an ad plays or easily change the channel during commercial breaks. As a result, OTT’s average video ad completion rate is a whopping 98%.
Finally, FreeWheel points out that traditional TV and digital measurement solutions were not designed to incorporate OTT viewing and that the industry has yet to arrive at a common standard for how to evaluate campaign reach, targeting, and performance. There are many ways to get credit for audiences on OTT — but all of them take work and require flexibility from buyers. This new analysis suggests that making the extra effort is worth it
To read the complete article, click to visit Freewheel.
Register now to attend the ARF’s OTT event on October 3, 2017, OTT: Is TV by any other name still TV?