Deeper Insights on Millennial Viewers Can Lead to Higher Retention for OTT Service Providers
In a previous post, we highlighted that advertising via over-the-top (OTT) platforms can be more effective than traditional TV advertising and boasts 98% ad consumption1. Ad consumption rates are high via OTT and have the potential to be more effective when the content is personalized for viewers. Market trends show a continued rise of ad views on OTT, which grew to 29% in Q2 2017.2 It’s no surprise why advertisers are embracing TV programming through the internet.
OTT viewers are a growing captive audience for advertisers
The average U.S. household now has 10 connected devices,3 leading to a proliferation of audience fragmentation among screens and viewing habits. That said, viewers using OTT platforms tend to select a specific program that they are vested in and are less apt to multitask during the show or ad breaks. People who watch digital content online are not channel surfers. These emerging trends and viewing realities lead to new opportunities for advertisers to personalize ads for each individual viewing experience.
There are hundreds of channels and apps and OTT providers face an uphill battle in maintaining viewer retention as content and accessibility preferences vary by consumer. The challenge is especially true when advertising to millennials. This often talked about generation is diverse, independent, opinionated and a desirable audience.
With a deeper understanding of these viewers, OTT providers can better define sub-segments (e.g., demographic, behavioral, contextual) and deliver highly targeted, relevant content, which in turn, supports higher retention. OTT measurement capabilities, such as the ability to target viewers by a device ID, allow advertisers to weave in additional data to more accurately identify and reach intended audiences.
Finding strong data partners is an important first step in taking full advantage of OTT and digital media’s targeting and measurement precision. To learn more about reaching millennials through OTT, take a look at this infographic, How to Reach Millennials: Go Over-the-Top.
1FreeWheel Report Calls OTT Better Form of TV Advertising (2017), http://www.broadcastingcable.com/news/currency/freewheel-report-calls-ott-better-form-tv-advertising/167604#
2FreeWheel Q2 2017 Video Monetization Report, http://freewheel.tv/insights/#video-monetization-report
3VAB Left to Your Own Devices Q1 2017 Report, http://www.thevab.com/wp-content/uploads/2017/09/Device-Usage-Report-1Q-17-Final.pdf
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