There has been a massive consumer shift towards OTT video content consumption in the US, with 40% of OTT users have “paused to purchase” – pausing the streaming content they were watching to learn more or make a purchase from an ad, according to new research.
With the majority of American adults now using at least one OTT service, with most using on average three separate platforms to stream content, the new study highlights how OTT has become the primary video content channel for nearly all age groups in the U.S. today.
The study comes from OpenX which commissioned a nationwide survey with Harris Poll.
Key statistics include:
- On average, OTT consumers use their mobile devices for more than 6 hours a day.
- Nearly one third of people say screen size has no impact on how long they watch or what type of content they watch.
- 70% of people watch OTT content in bed at night, 30% watch while on vacation, 21% watch at their desk at work, and almost 30% watch in the bathroom!
- 40% of OTT users have “paused to purchase” – pausing the streaming content they were watching to learn more or make a purchase from an ad.
- One third of OTT consumers share passwords.
The new report also uncovers new opportunities for marketers to expand their ad strategies beyond traditional TV buying to include targeted and effective OTT user engagement. Despite the report’s finding that OTT viewing has surpassed live television for many demographics, only $2 billion of the $70 billion spent on television advertising in the US in 2018, was spent on targeted, addressable TV ads.
Key highlights from the new study include:
- OTT is now mainstream. A majority of US adults now stream OTT content daily, and Millennials who subscribe to at least one OTT service watch more than twice as much OTT content as they do live TV.
- OTT consumers are mobile-first. On average, OTT consumers use their mobile devices for more than 6 hours a day, and nearly one third of people say screen size has no impact whatsoever on how long they watch or what type of content they watch. Millennials stream more video content on their smartphone than they do on their television sets.
- Password sharing and screen sizes complicate marketing strategies. One third of OTT consumers share passwords and the average OTT user has three different connected devices that they stream video content on. This sharing and fragmentation requires marketers to take a more comprehensive approach to delivering 1:1 experiences in OTT environments.
- There is room for different business models. Streamers are about evenly split between wanting an ad supported or subscription model. A slim majority of viewers prefer a cheaper or free service supported by ads rather than a more expensive ad-free service.
- OTT ads work. Not only have two-thirds of OTT users learned about a new product or company from an OTT ad, but 40 percent have “paused to purchase” – pausing the streaming content they were watching to learn more or make a purchase.
“Consumer attention is shifting significantly to OTT channels and this sea change in how we consume video content represents the most significant evolution in media consumption since the introduction of the smartphone,” said Dallas Lawrence, chief brand officer at OpenX. “More than half of all Americans now use an OTT service, and they stream a lot – more than two and a half hours every single day. With OTT now capturing a significant percentage of total consumer video time, yet less than 5% of total television ad spending, an enormous shift in how marketers diversify their advertising strategy is on the horizon. This research clearly signals that the OTT era has arrived, and with it, new and disruptive opportunities for marketers to elevate the power and efficacy of video brand advertising beyond anything we have seen before.”
Visit http://www.openx.com/OTTresearch