Author: H.B. Duran. Source: a.list
New data from IAB shows that ad-supported video over-the-top (ASV OTT) viewers in the US tend to be younger, male and earn a higher income. Cost savings is a major driver for cord-cutting or shaving off existing services, the study found, and reaching this audience through traditional channels may prove difficult.
IAB conducted a joint study with MARU/Matchbox that examines consumer behavior in the US as it relates to watching ad-supported streaming content. Around 250,000 US consumers over the age of 18 were surveyed between August and September of this year.
“Ad Receptivity and the Ad-Supported OTT Video Viewer” found that a majority (73 percent) of video-streaming respondents watch ad-supported OTT video and 45 percent said most of those videos are ad-supported. This group was found to be more receptive to advertising, saying that ads on ASV OTT services are better than TV commercials—more engaging, relevant and unique.
More than half of ASV OTT viewers said that they pay more attention to ads when they see fewer of them, and nearly half said they remember the ad even if it was skipped. Just over half—57 percent—said they like when brands support the content they watch, compared to 39 percent of SVOD viewers.
Of those who watched AVS OTT the most, 60 percent were male and 44 percent were between the ages of 18-34. About half of this demographic was married with children and 34 percent earned more than $75,000 per year.
Higher income doesn’t mean they want to spend all that money on cable, however. Just over half of ASV OTT viewers have cut back or eliminated cable, satellite and/or telco services, with “cost” being the top reason across the board. After saving money, the top reasons were convenience and flexibility at 42 percent, while 38 percent claimed better content on their streaming services.
IAB found the majority of regular ASV OTT viewers to watch less cable than SVOD viewers—10.4 hours per week compared to 11.6. Also, these users are watching more on OTT than they were a year ago. ASV OTT viewers are also more likely to follow social media influencers and spend more on subscription services like meal kits.