OTT Providers: 5 Things to Know About Millennials
The Millennial audience is very discerning and a lucrative market for many consumer goods and services companies. In fact, what’s interesting about the Millennial generation is the diversity within the population and how it differs from previous generations (e.g. Baby Boomers). Therefore, a deeper understanding of this market segment can help OTT (over-the-top) providers improve their marketing and also make OTT advertising offerings more attractive for companies seeking to reach them.
So, take a look at these five Millennial attributes that you may not even be aware of.
#1 Millennial household financial profiles are very diverse.
Income, assets, discretionary spending and credit capacity vary by market. For example:
- $30,000 difference in discretionary spending between the highest average city – Washington, D.C. and the lowest average city – Virginia Beach, VA.1
- Washington, D.C. households have the highest credit balance average: $149,000 – more than double the lowest average of $69,000 in Pittsburgh, PA.1
#2 Millennial OTT viewers have higher incomes than traditional TV/cable viewers.
- The median age of an OTT viewer is 31, and their median income is $61,200.2
- Furthermore, the average traditional TV/cable viewer is 54 years old and has a median income of $51,500.2
#3 OTT viewing by Millennials is increasing, and their ad engagement is high.
- OTT share of TV viewing time among Millennials increased from 15% in 2013 to 54% in 2016. Traditional TV viewing for this group dropped sharply from 75% to 39% for the same period.3
- Millennials are more likely to turn to OTT services rather than TV network channels when they want to watch TV programming. 36% stated that a major video streaming provider was their “go-to source” for TV content while 29% said it was live TV.3
- 98% of viewers consume the video ads delivered to them.4
#4 Leveraging data and insights helps improve market segmentation.
- Combining your own customer data with external geographic market and estimated consumer household economic profiles can enhance your ability to segment and target audiences.
- Additionally, insights from estimated income, discretionary spending capacity and ability to pay enable you to identify and target the most lucrative Millennial segments.
#5 Promoting OTT benefits and offering Millennial-focused packages may help enhance target marketing and boost monetization of advertising.
- First, understanding and promoting insights about your OTT audience can help attract and retain advertising dollars. Second, profile viewer portfolios and share household/device ad consumption information. Finally, show OTT performance over cable and traditional TV.
- Marketers across industries, from electronics to fast-food and fashion, are targeting millennials. Therefore, delivering hyper-targeted packages of viewer segments to your advertisers can improve their targeting precision and return on their advertising dollars.
To learn more about the financial profile of your Millennial audience, check out this infographic.
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