Shifting to digital delivery systems could be a good thing for TV advertising according to a new report on over-the-top viewing. FreeWheel, a leading Ad-tech company that is owned by Comcast, revealed that consumers who watch TV on over the top platforms winded up being more engaged with the programs and advertisements that run on the platforms. According to the report, OTT viewers complete 98% of the video ads that they’re served. The consumers are also of a younger age when compared to the viewers of traditional broadcast and cable TV, which means that OTT advertisers can target the coveted millennial generation, who often elude TV. According to an analysis of Nielsen data, the median age of OTT viewers is 31, compared to a median age of 54 for traditional TV. Median household income for OTT is $61, 200 while traditional TV households have income of $51,500.
“The rise of video consumption in the living room through OTT devices provides great opportunities for advertisers—new sources of premium inventory coupled with the ability to align delivery with changing consumption habits allows us to better connect with the consumer and ultimately drive more brand value for our clients,” said Jon Anselmo, chief digital officer and president at Omnicom Media Group, who is quoted in the report. “A focus on this area now ensures our clients are ready for a future that one could argue is already here.”
According to the report, advertisers are worried that advertising on OTT doesn’t get them the same viewers as traditional TV. But the report found that views on OTT peaked at the same time as traditional viewing, which suggests that consumers are slowly shifting away from traditional viewing and adopting OTT formats.
“The desirable audiences, engaged viewers, and marketing effectiveness that OTT brings to the table make it an increasingly essential channel for marketers. While barriers remain to opening the floodgates of advertising investment, each member of the premium video ecosystem—buyers, publishers, distributors, tech providers—must do their part to develop and align on standards for transacting OTT,” the report said.