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Ad Receptivity and the Ad-Supported OTT Video Viewer October 2018 Made Possible with the Financial Support of: Produced by IAB Video Center of Excellence

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Page 1: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

Ad Receptivity and the Ad-Supported OTT Video Viewer

October 2018

Made Possible with the Financial Support of:

Produced by IAB Video Center of Excellence

Page 2: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

Objectives and Methodology

2

Objective:

The study aimed to both size the audience and provide demographics of U.S. video streamers watching Ad-

Supported Over-the-Top (ASV OTT) video. Once ASV OTT viewers were identified, a deep dive survey

further explored the video viewer segments to gain insights into their behaviors, attitudes and usage in order

to help better target the ASV OTT cohort.

Methodology:

Two online surveys were fielded among MARU/Matchbox’s Springboard America online

panel (~250,000 U.S. members):1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video

Viewer; fielded 8/10/18.

2. Study among 1,223 consumers ages 18+ in the U.S., with age/gender quotas set to reflect viewership profiles from the omnibus

study; fielded 9/25/18-9/26/18.

Page 3: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

Definitions

3

Ad-Supported OTT Video Viewers (ASV OTT Viewers) are defined as those who watch video…

Free Ad-Supported OTT Video Viewers (Free ASV OTT Viewers), a subset of ASV OTT, are defined as those who watch video…

Subscription Video On Demand (SVOD) Viewers defined as those who watch video…

TV Viewers are defined as those who watch…

Through a streaming service I watch for free and there are ads (e.g., YouTube, Pluto, Roku Channel, Crackle, Vevo, Xumo, etc.)

Through an online-based cable TV provider (e.g., Sling TV, DirecTV Now)

Through a streaming app that requires a cable/satellite/telco login (e.g., Discovery GO, FX app, WatchESPN, Xfinity, Spectrum, etc.)

Through a streaming service I subscribe to for a monthly fee, and there are ads (e.g., Hulu with limited ads, CBS All Access with limited ads, etc.)

Through a streaming service I subscribe to for a monthly fee, and there are no ads (e.g., Netflix, Amazon Prime, HBO Go/Now, Showtime App, etc.)

TV Only Viewers = those who only watch TV/Cable

Heavy = those who watch TV/cable daily+

Light = those who watch TV/cable weekly or less

Through a streaming service I watch for free and there are ads (e.g., YouTube, Pluto, Roku Channel, Crackle, Vevo, Xumo, etc.)

‘Regular’ (not cable) TV to access free local channels (e.g., ABC, CBS, NBC, FOX, etc.) using an antenna or ‘over the air’

Through my cable/satellite/telco provider (e.g., live TV, DVR, VOD)

Page 4: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

Key Takeaways

4

73% of adults 18+ who typically watch streaming OTT video say they watch ad-supported OTT video

45% of adults 18+ who typically watch streaming OTT video say they watch ad-supported OTT video most out of streaming videos

Ad-Supported OTT Video Viewers (ASV OTT) are an INCREMENTAL audience: • ASV OTT viewers do NOT typically watch linear TV (ASV OTT viewers spend less time watching cable than SVOD OTT

viewers)—they are an incremental reach.

• Over half are cord cutters/shavers with over one-third citing ‘better content on streaming services’ as a reason.

ASV OTT Viewers are a HIGH-VALUE audience:• Profile: Younger; with kids in household; skews male.

• Similar to SVOD OTT viewers except that they skew more male.

• Very different from TV only viewers: Younger; more male; diverse; with kids; higher income.

ASV OTT Viewers are an ENGAGED audience:• Roughly 1 in 3 ASV OTT Viewers say that ads on free ASV OTT services are better than TV commercials.

• About 1 in 3 say ASV OTT ads are more engaging, relevant and unique than TV commercials.

Page 5: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

Key Takeaways

5

ASV OTT Viewers watch a variety of platforms

Over 2-in-5 ASV OTT Viewers are watching more ASV OTT video than they did a year ago.

ASV OTT Viewers are receptive to ads: They are much more likely than SVOD OTT viewers to enjoy ads, find them useful, have higher engagement with them and to enjoy interacting with ads.

More ASV OTT Viewers try new brands, are brand influencers and buy direct brands.

Compared to SVOD OTT Viewers and TV Only Viewers, ASV OTT Viewers are more likely to follow Social Influencer stars and they spend more on subscription purchases (e.g., meal kits or contact lenses).

Page 6: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

Why Does This Matter?

6

ASV OTT viewers are a valuable audience who are similar in demographic to SVOD OTT viewers but reachable primarily through ASV. They are a more desirable audience than TV Only viewers.

ASV OTT viewers can be more elusive to target than TV Only or SVOD OTT Viewers but can be found on ad-supported video OTT channels, where they are watching more ASV OTT than a year ago.

Despite being the typical ad blocking demo (young, male), ASV OTT viewers are more receptive to advertising than either SVOD OTT or TV Only viewers. What’s more, many report that they enjoy interacting with ads. In fact, ASV OTT viewers think of ads on this platform as being better.

ASV OTT viewers report that they are open to new brands, new ways of advertising and marketing and have a penchant for direct brands. This target is prime for direct brand messaging.

Page 7: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

7

Meet the ASV OTT Viewer

Page 8: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

8

73%

QS1_Services. How do you typically watch TV or streaming video on your TV? 'Video' may include TV shows, movies, news clips, music videos, online original video series, etc.

Omnibus., n=900

of adults 18+ who typically watch streaming video say they watch ad-supported OTT video

Page 9: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

9

45%

QS2_ServicesMost. And which of the following do you watch most often?

Omnibus, n=900

of adults 18+ who typically watch streaming video say they watch ad-supported OTT video most out of streaming videos

Page 10: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

18-34 35-54 55+

10

Demographics Those who watch Ad-supported Video (ASV) OTT most skew: male; younger; diverse; and with kids

G E N D E R

U.S. 18+ GEN. POP. WATCH ASV OTT MOST

A G E

18-34 35-54 55+

60% MALE49% MALEFEMALE FEMALE

30%

33%

36%

44%

37%

18%

Gender, Age, HH Income, Marital Status, Kids in HHOmnibus, n=1,512; floating by Platform Users. Watch ASV OTT Most n=388,

Page 11: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

64%

12%

16%

8%

58%

15%

14%

12%

11

Demographics Those who watch Ad-supported Video (ASV) OTT most skew: male; younger; diverse; and with kids

Caucasian

African-American

Hispanic

Asian/Other

P A R E N T S

E T H N I C I T Y

U.S. 18+ GEN POP WATCH ASV OTT MOST

Married Have children

in household

50% 41%

Married Have children

in household

49% 51%

Caucasian

African-American

Hispanic

Asian/Other

M A R I T A L S T A T U S

H o u s e h o l d

I n c o m e

$ 7 5 k +28% 34%

Gender, Age, HH Income, Marital Status., Kids in HH

Omnibus, n=1,512; Watch ASV OTT Most, n=388

Page 12: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

Those who mostly watch ASV OTT Video most are similar to SVOD viewers except that they skew much more Male and are slightly more diverse

12

U.S. Gen Pop Watch ASV

OTT Most

Watch SVOD

OTT Most

TV Only

Viewers

Male 49% 60% 46% 44%

Female 51% 40% 54% 56%

18-34 30% 44% 42% 10%

35-54 33% 37% 36% 28%

55+ 36% 18% 21% 61%

White/Caucasian 64% 58% 60% 72%

Black/African American 12% 15% 11% 11%

Hispanic 16% 14% 23% 11%

Asian/Other 8% 12% 6% 7%

$75K+ Income 28% 34% 34% 21%

Married 50% 49% 51% 51%

Kids in Household 41% 51% 51% 26%

Gender, Age, HH Income, Marital Status, Kids in HHOmnibus, n=1,512; floating by Platform Users. Watch ASV OTT Most n=388, Watch SVOD OTT Most n =512, TV Only Viewers n=566.

• ASV OTT viewers are very different from TV only viewers: Younger, more male, diverse, with kids at home and higher income.

Page 13: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

44%

17%15%

25%

16%

29%

62%

43%41%

34%

54%

42%

37%

48%

Ad-free SubscriptionService

Ad-supportedSubscription Service

Streaming app thatrequires a

cable/sat/telco login

Ad-supported FreeService

Online-based cable TVprovider

Regular (not cable) TV Cable/Sat/Telco TV(e.g., live TV, DVR,

VOD)

% Who Typically View OTT Video via Each ServiceAmong U.S. Adult 18+ OTT Streamers and Among U.S. Adult 18+ OTT Streamers Who Watch ASV OTT Most

US 18+ Gen Pop ASV OTT Most Viewer

13

OTT Video Services Typically Watched

QS1_Services. How do you typically watch TV or streaming video on your TV? 'Video' may include TV shows, movies, news clips, music videos, online original video series, etc.

Omnibus, n=1,512; Watch ASV OTT Most, n=388

(e.g., Netflix, Amazon Prime, HBO

Go/Now, Showtime App, etc.)(e.g., Hulu with limited ads, CBS

All Access with limited ads, etc.)

(e.g., YouTube, Pluto, Roku

Channel, Crackle, Vevo, Xumo, etc.)

(e.g., Sling TV, DirecTV Now) (e.g., ABC, CBS, NBC, FOX, etc.)

using an antenna or ‘over the air’(e.g., Discovery GO, FX app,

WatchESPN, Xfinity, Spectrum, etc.)

Page 14: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

14

TV and The ASV OTT Viewer

Page 15: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

More ASV OTT Viewers than SVOD OTT Viewers have recently cut/shaved cable/satellite/telco service

Cost remains the top reason for cord cutting

52%47%

26%

ASV OTT Viewers SVOD OTT Viewers TV Only Viewers

% Who Are Cord Cutters/Shavers

More than half of ASV OTT Viewers are cutting back on cable/ satellite/telco services due to cost

15

QS7. Have you ever subscribed to a paid TV service (Basic cable, Digital cable, Telco or Satellite)?

QS8. Have you recently cut back on your paid TV service (Basic cable, Digital cable, Telco or Satellite)?

Base: Floating by Platform Users; ASV OTT n=589, SVOD n=332, TV Only n=302.

Q_WhyCordCutShave. Which of the following reasons, if any, explain why you cut back or stopped your cable TV subscription?

Base: Total n=540, ASV OTT Viewer n=306, SVOD Viewer n=155, TV Only Viewer n=79

"Cost” is the top reason for all groups

23% 28%CUT

SHAVED

11%

29% 19%

15%

Page 16: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

The convenience of choosing from vast content supply, including TV Shows, impacts perception of “better” OTT content, leading to cord cutting/shaving

16

QS7. Have you ever subscribed to a paid TV service (Basic cable, Digital cable, Telco or Satellite)? QS8. Have you recently cut back on your paid TV service (Basic cable, Digital cable, Telco or Satellite)?

Base: Floating by Platform Users; ASV OTT n=589, SVOD n=332, TV Only n=302.

Q_WhyCordCutShave. Which of the following reasons, if any, explain why you cut back or stopped your cable TV subscription?

Base: Total n=540, ASV OTT Viewer n=306, SVOD Viewer n=155, TV Only Viewer n=79

Q11. [NET: Top Box] Now let’s talk about what types of video you watch. Do you typically watch: TV Shows: Current or past TV shows from Reality TV to Comedy to Drama, etc.

(i.e. Big Bang Theory, Friends, South Park, Real Housewives, Deadliest Catch, etc.)

Base: ASV OTT Viewers n=589, SVOD OTT Viewer n= 332

42% 29% ‘Convenience/flexibility of streaming services’

Reasons for cutting/cutting back on cable:

38% 32% ‘Better content on streaming services’

77% 74% ‘To save money’

72% 77% Typically watch TV Shows

79% 87% Rate the format good/excellent for variety of content

ASV OTT

ViewersSVOD OTT Viewers

ASV OTT

Viewers

SVOD OTT Viewers

Most ASV and SVOD OTT viewers typically watch TV Shows and think the formats offer good content variety

Price, convenience and content impact cord cutting

Page 17: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

ASV OTT Viewers are not as easily reached via TV

17

ASV OTT Viewers are an incremental reach: They spend less time watching cable than SVOD Viewers

QS6. [TV through cable/satellite/telco provider (e.g., live TV, DVR, VOD)] How many hours a week do you watch on each of the following platforms?

Base: ASV OTT Viewers n=340, SVOD Viewers n=193, TV Only Viewers n=262

ASV OTT Viewers

10.4hrs

Hours Spent Watching Cable/Sat/Telco TV Per Week

SVOD OTT Viewers

11.6hrs

TV Only Viewers

14.7hrs

Even lower among Free ASV OTT Viewers: 10.1hrs

Statistically significant differences between ASV OTT and TV Only.

Statistically significant differences between SVOD OTT Viewers and TV Only

Page 18: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

And more than 2-in-5 ASV OTT Viewers are watching more on OTT platforms vs. a year ago

18Q8. [More than a year ago] Would you say you currently watch each platform more, same or less than a year ago?

Base: ASV OTT Platform Users.

53%

47% 46%44%

42%

35%32%

Ad-free SubscriptionService

Streaming app thatrequires a

cable/satellite/telco login

Ad-supportedSubscription Service

Ad-supported FreeService

Online-based cable TVprovider

Regular (not cable) TV Cable/Satellite/Telco TV

% Watching Each Service More Than They Did a Year Ago(Among ASV OTT Viewers)

(e.g., Netflix, Amazon

Prime, HBO Go/Now,

Showtime App, etc.)

(e.g., Hulu with

limited ads, CBS

All Access with

limited ads, etc.)

(e.g., YouTube, Pluto,

Roku Channel, Crackle,

Vevo, Xumo, etc.)

(e.g., Sling TV,

DirecTV Now)

(e.g., ABC, CBS, NBC,

FOX, etc.) using an

antenna or ‘over the air’

(e.g., live TV, DVR, VOD)(e.g., Discovery GO, FX

app, WatchESPN, Xfinity,

Spectrum, etc.)

Page 19: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

19

Ad Receptivity and The ASV OTT Viewer

Page 20: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

63%

59%

56%

53%

47%

43%

43%

34%

36%

I don't mind seeing ads if I'm payingnothing

I don't mind seeing ads if I'm getting towatch content when I want

I don't mind seeing ads if I'm paying areduced fee

ASV OTT Viewers SVOD Viewers TV Only Viewers

23%

18%

14%

ASV OTT Viewers are more receptive to advertising

20

50%

37%

24%

ASV OTT Viewers SVOD OTT Viewers TV Only Viewers

QS7. How do you feel about advertising in general?

Base: ASV OTT Viewer n=589, SVOD Viewer n=332, TV Only Viewer n=302

Q22. [NET: Top Box] How much do you agree or disagree with the following?

50% of ASV OTT Viewers say that ads can be useful or enjoyable

34%

25%

19%

28%

17%

13%

Agree | Strongly Agree

Ad Receptivity

Statistically significant differences between ASV and SVOD or TV Only

“Some ads can be useful or enjoyable”

Nearly 2/3 of ASV OTT

viewers don’t mind seeing ads

Page 21: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

Most ASV OTT Viewers think ads on free ASV OTT are as good or better than TV ads

21Q12a. [Overall] Compared to ads on TV, ads on Ad-supported Free Services (e.g., YouTube, Crackle, Vevo, etc.) are…

Base: ASV OTT Viewers, n=342

54% 50% 54% 53%

36% 39% 33% 34%

Just as/More Relevant ThanTV

Same/Better Than TV More Engaging Than TV More Unique Than TV

% Who Say That Compared to Ads on TV, Ads on Free ASV OTT are…

Same as TV Commercials Better than TV Commericals

(Among ASV OTT Viewers)

Nearly 9 in 10 ASV OTT Viewers say ads on Free Ad-Supported Video are the same as or better, more relevant, more engaging and more unique than those on TV.

90% 89% 87% 87%

Page 22: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

60%

48%

57%

49%

32%

39%

When I see fewer ads, I pay more attention to them

Even when I skip an ad, I remember what the ad was for

I like when brands support the content I watch

Ad Engagement

ASV OTT Viewers SVOD OTT Viewers

22 Q22. [NET: Top Box] How much do you agree or disagree with the following?

Base: ASV OTT Viewers n=589, SVOD Viewer n= 332

Ad engagement is stronger among ASV OTT Viewers vs. SVOD OTT Viewers

31%

21%

22%

14%

27%

19%

Agree | Strongly Agree

Statistically significant differences between ASV and SVOD or TV Only

• Nearly Half of ASV OTT viewers recall skipped ads

Page 23: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

56%

51%

47%

39%

35%

33%

I like ads that give me the choice to interact with a sponsor (ex. taking aquiz, watching a longer ...

I like when I'm asked for feedback on the ads Ive been shown

I like being able to interact with video ads (ex. taking a quiz, clicking tolearn more about a brand)

Ad Interaction

ASV OTT Viewers SVOD OTT Viewers

23 Q22. [NET: Top Box] How much do you agree or disagree with the following?

Base: ASV OTT Viewers n=589, SVOD Viewer n= 332

ASV OTT Viewers enjoy interactive ads more than SVOD Viewers

Agree | Strongly Agree

29%

16%

25%

16%

23%

14%

Statistically significant differences between ASV and SVOD

quiz, watching a longer video ad upfront) and then watch commercial-free for a period of time

• Roughly half of ASV OTT viewers enjoy interacting with video ads, giving ad feedback or interacting with opt-in rewarded video ads

Page 24: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

24

Direct Brands and ASV OTT Viewers

Page 25: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

A quarter of ASV OTT Viewers say they buy more products directly from the brand online vs. in stores

25

ASV OTT Viewers are…

Q24. How likely are you to try new brands/products? [TOP BOX]

Q25. Which of the following describe you?

Base: Total n=1223, ASV OTT Viewer n=589, SVOD Viewer n=332, TV Only Viewer n=302

are very likely to try new brands/productsTotal

SVOD

VIEWER

TV

ONLY

VIEWER

44% 47% 25%

learn about new products/brands/services from video ads

say others come to them to find out about new products/brands/services

buy more products directly from the brand online vs. in stores

Total

SVOD

VIEWER

TV

ONLY

VIEWER

30% 30% 17%

Total

SVOD

VIEWER

TV

ONLY

VIEWER

20% 20% 7%

Total

SVOD

VIEWER

TV

ONLY

VIEWER

18% 18% 4%

often post about products, brands, or servicesTotal

SVOD

VIEWER

TV

ONLY

VIEWER

16% 16% 6%

Influencers

Influenced by Video

Direct Brand Shoppers

Open to New Brands Total

TV Only52%

36%

26%

21%

25%

Statistically significant differences between ASV OTT and SVOD OTT Viewers or TV Only or Total

(for ex. mattresses, eyeglasses)

Page 26: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

ASV Viewers follow internet influencers – more so than SVOD OTT viewers

26

More ASV OTT Viewers – particularly Free AVS OTT Viewers – engage with internet personalities

Q25. Which of the following describe you?

Base: Total n=1223, ASV OTT Viewer n=589, SVOD Viewer n=332, TV Only Viewer n=302

regularly watch videos from some YouTube stars Total

SVOD

VIEWER

TV

ONLY

VIEWER

18% 17% 5%

listen to video personalities who discuss products / brands / services

follow some internet stars on social media

Total

SVOD

VIEWER

TV

ONLY

VIEWER

15% 15% 4%

Total

SVOD

VIEWER

TV

ONLY

VIEWER

15% 13% 3%

25%

22%

20%

Statistically significant differences between ASV OTT and SVOD OTT Viewers or TV Only or Total

Page 27: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

ASV OTT Viewers spend more on direct to consumer subscription services

27 Q27b. [Subscription Purchases (Pet food, Contact Lenses, Meal Kits, etc.)] How much would you estimate that your household spends on the following per month?

Base: Total n=1223, ASV OTT Viewer n=589, SVOD Viewer n=332, TV Only Viewer n=302

$94.46

$119.19

$89.23

$51.99

Total ASV OTT Viewer SVOD Viewer TV Only Viewer

Mean Spend on Subscription Purchases (e.g., Pet food, Contact Lenses, Meal Kits, etc.)

Statistically significant differences between ASV OTT and SVOD or TV Only or Total

Page 28: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

28

Deep Dive: Free ASV OTT Viewers

Page 29: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

Deep Dive: Free ASV OTT Viewers are open to advertising

29

QS7. How do you feel about advertising in general?

Q22. [NET: Top Box] How much do you agree or disagree with the following?

Base: Free ASV OTT Viewer n=277

44% of free ASV OTT Viewers say that ads can be useful or enjoyable

36% of free ASV OTT Viewers don’t mind seeing ads if they’re paying nothing

29% of free ASV OTT Viewers don’t mind seeing ads if they get to watch content when they want

Page 30: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

Deep Dive: Free ASV OTT Viewers follow influencers

30

They are more likely to follow online personalities and be influenced by them in their purchases

*= significantly higher than Total

Q25. Which of the following describe you?

Base: Total n=1223, Free ASV OTT Viewer n=277

regularly watch videos from some YouTube stars

follow some internet stars on social media

Free ASV

OTT ViewersTotal

listen to video personalities who discuss products / brands / services

27%

23%

23%

18%

15%

15%

Page 31: Ad Receptivity and the Ad-Supported OTT Video …...1. Omnibus study of 1,512 nationally representative U.S. 18+ sample to determine the profile of the Ad-Supported OTT Video Viewer;

31

Q24. How likely are you to try new brands/products? [TOP BOX]

Q25. Which of the following describe you?

Base: Total n=1223, Free ASV OTT Viewer n=277

are very likely to try new brands / products

learn about new products/brands/services from video ads

say others come to them to find out about new

products/brands/services

buy more products directly from the brand online vs. in stores

Deep Dive: Nearly half of Free ASV OTT viewers are very likely to try new brands

often post about products, brands, or services

Free ASV

OTT Viewers Total

47%

40%

26%

19%

24%

44%

30%

20%

16%

18%(for ex. mattresses, eyeglasses)

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Thank You

32

Maru

Rhiannon [email protected]

IAB

Kristina [email protected]

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33

Appendix: Additional Slides

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24%

23%

25%

43%

34%

77%

79%

79%

32%

35%

37%

44%

44%

72%

72%

73%

Original digital video

Music videos

UGC

News

Sports

TV shows

Original series

Movies

ASV OTT Viewers SVOD OTT Viewers

34 Q11. [NET: Top Box] Now let’s talk about what types of video you watch. Do you typically watch:

Base: ASV OTT Viewers n=589, SVOD OTT Viewer n= 332

Types of Video Viewed: Movies, Original Series, TV Shows watched by most

• SVOD OTT Viewers more likely to watch Movies, Original Series and TV shows

• ASV OTT viewers more likely to watch Sports, UGC, Music Videos and ODV

Free ad-supported, professionally produced and digitally distributed

original videos (i.e. Slow Mo Guys, Smosh, Between Two Ferns, etc.)

User generated content – videos made by people like you (i.e. funny

cat videos, cute baby videos, dance routines, viral videos, etc.)

Current or past TV shows from Reality TV to Comedy to Drama, etc.

(i.e. Big Bang Theory, Friends, South Park, Real Housewives,

Deadliest Catch, etc.)

Original series from streaming services - Professional episodic shows

usually made for Netflix, Amazon Prime or Hulu (i.e. Stranger Things, The

Man in the High Castle, Handmaid’s Tale, Orange is the New Black, etc.)

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33%

42%

43%

47%

47%

70%

73%

75%

Original digital video

Sports

Music videos

UGC

News

Movies

Original series

TV shows

Free ASV OTT Viewers

35

Types of Video Viewed by Free ASV OTT Viewers: TV Shows, Original Series, Movies

• Free ASV OTT Viewers much more likely to watch News, Music Videos, UGC

Free ad-supported, professionally produced and digitally distributed

original videos (i.e. Slow Mo Guys, Smosh, Between Two Ferns, etc.)

User generated content – videos made by people like you (i.e. funny

cat videos, cute baby videos, dance routines, viral videos, etc.)

Current or past TV shows from Reality TV to Comedy to Drama, etc.

(i.e. Big Bang Theory, Friends, South Park, Real Housewives,

Deadliest Catch, etc.)

Original series from streaming services - Professional episodic shows

usually made for Netflix, Amazon Prime or Hulu (i.e. Stranger Things, The

Man in the High Castle, Handmaid’s Tale, Orange is the New Black, etc.)

Q11. [NET: Top Box] Now let’s talk about what types of video you watch. Do you typically watch:

Base: Free ASV OTT Viewers n=277

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Cord Nevers: ASV OTT Viewers are less likely to be cord nevers

36

13%

21%20%

ASV OTT Viewers SVOD OTT Viewers TV Only

Cord Nevers

Cord Nevers

QS7. Have you ever subscribed to a paid TV service (Basic cable, Digital cable, Telco or Satellite)?

Base: ASV OTT Viewers n=589, SVOD Viewer n= 332 TV Only Viewer n=302

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Co-Viewing: Most platforms are watched with others. Online cable most likely to be co-viewed; ad supported free less likely to be co-viewed.

37Q22. How many people do you typically watch with on each platform? [I watch by myself] [I watch with others]

Base: OTT Platform Users.

31% 35% 33%46%

24%33% 32%

69% 65% 67%54%

76%67% 68%

Ad-free SubscriptionService

Streaming app thatrequires a

cable/satellite/telco login

Ad-supportedSubscription Service

Ad-supported FreeService

Online-based cable TVprovider

Regular (not cable) TV Cable/Satellite/Telco TV

Ratio of % Who Watching Alone : % Who Watch With Others on this Platform(Among Platform Viewers)

Watch Alone Watch with Others

(e.g., Netflix, Amazon

Prime, HBO Go/Now,

Showtime App, etc.)

(e.g., Hulu with

limited ads, CBS

All Access with

limited ads, etc.)

(e.g., YouTube, Pluto,

Roku Channel, Crackle,

Vevo, Xumo, etc.)

(e.g., Sling TV,

DirecTV Now)

(e.g., ABC, CBS, NBC,

FOX, etc.) using an

antenna or ‘over the air’

(e.g., live TV, DVR, VOD)(e.g., Discovery GO, FX

app, WatchESPN, Xfinity,

Spectrum, etc.)

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38Q1. [NET: Top 2 Box] How do you rate the video platform(s) you use in terms of user experience?

Base: OTT Platform Users.

91%

78% 78% 78%

85%

72%77%

Ad-free SubscriptionService

Streaming app thatrequires a

cable/satellite/telco login

Ad-supportedSubscription Service

Ad-supported FreeService

Online-based cable TVprovider

Regular (not cable) TV Cable/Satellite/Telco TV

UX Ratings for Each Platform(% Who Rate it Excellent/Good Among Platform Viewers)

(e.g., Netflix, Amazon

Prime, HBO Go/Now,

Showtime App, etc.)

(e.g., Hulu with

limited ads, CBS

All Access with

limited ads, etc.)

(e.g., YouTube, Pluto,

Roku Channel, Crackle,

Vevo, Xumo, etc.)

(e.g., Sling TV,

DirecTV Now)

(e.g., ABC, CBS, NBC,

FOX, etc.) using an

antenna or ‘over the air’

(e.g., live TV, DVR, VOD)(e.g., Discovery GO, FX

app, WatchESPN, Xfinity,

Spectrum, etc.)

UX: Some platforms are better rated than others for the user experience

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39[Q2. [NET: Top 2 Box] How do you rate the video platform(s) you use in terms of value?

Base: OTT Platform Users.

88%

80% 81%85% 84%

79%

59%

Ad-free SubscriptionService

Streaming app thatrequires a

cable/satellite/telco login

Ad-supportedSubscription Service

Ad-supported FreeService

Online-based cable TVprovider

Regular (not cable) TV Cable/Satellite/Telco TV

Value Ratings for Each Platform(% Who Rate it Excellent/Good Among Platform Viewers)

(e.g., Netflix, Amazon

Prime, HBO Go/Now,

Showtime App, etc.)

(e.g., Hulu with

limited ads, CBS

All Access with

limited ads, etc.)

(e.g., YouTube, Pluto,

Roku Channel, Crackle,

Vevo, Xumo, etc.)

(e.g., Sling TV,

DirecTV Now)

(e.g., ABC, CBS, NBC,

FOX, etc.) using an

antenna or ‘over the air’

(e.g., live TV, DVR, VOD)(e.g., Discovery GO, FX

app, WatchESPN, Xfinity,

Spectrum, etc.)

Value: Some platforms are better rated than others in terms of value

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40Q3. [NET: Top 2 Box] How do you rate the video platform(s) you use in terms of quality of content?

Base: OTT Platform Users.

89%83% 82%

79%84%

73%76%

Ad-free SubscriptionService

Streaming app thatrequires a

cable/satellite/telco login

Ad-supportedSubscription Service

Ad-supported FreeService

Online-based cable TVprovider

Regular (not cable) TV Cable/Satellite/Telco TV

Content Quality Ratings for Each Platform(% Who Rate it Excellent/Good Among Platform Viewers)

(e.g., Netflix, Amazon

Prime, HBO Go/Now,

Showtime App, etc.)

(e.g., Hulu with

limited ads, CBS

All Access with

limited ads, etc.)

(e.g., YouTube, Pluto,

Roku Channel, Crackle,

Vevo, Xumo, etc.)

(e.g., Sling TV,

DirecTV Now)

(e.g., ABC, CBS, NBC,

FOX, etc.) using an

antenna or ‘over the air’

(e.g., live TV, DVR, VOD)(e.g., Discovery GO, FX

app, WatchESPN, Xfinity,

Spectrum, etc.)

Content Quality: Some platforms are better rated than others in terms of quality of content

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41Q4. [NET: Top 2 Box] How do you rate the video platform(s) you use in terms of variety of content?

Base: OTT Platform Users.

87%83% 81% 81% 81%

71%76%

Ad-free SubscriptionService

Streaming app thatrequires a

cable/satellite/telco login

Ad-supportedSubscription Service

Ad-supported FreeService

Online-based cable TVprovider

Regular (not cable) TV Cable/Satellite/Telco TV

Variety of Content Ratings for Each Platform(% Who Rate it Excellent/Good Among Platform Viewers)

(e.g., Netflix, Amazon

Prime, HBO Go/Now,

Showtime App, etc.)

(e.g., Hulu with

limited ads, CBS

All Access with

limited ads, etc.)

(e.g., YouTube, Pluto,

Roku Channel, Crackle,

Vevo, Xumo, etc.)

(e.g., Sling TV,

DirecTV Now)

(e.g., ABC, CBS, NBC,

FOX, etc.) using an

antenna or ‘over the air’

(e.g., live TV, DVR, VOD)(e.g., Discovery GO, FX

app, WatchESPN, Xfinity,

Spectrum, etc.)

Variety of Content: Some platforms are better rated than others in terms of variety of content

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42Q5. [NET: Top 2 Box] How do you rate the video platform(s) you use in terms of availability of unique content?

Base: OTT Platform Users.

87%

79% 79% 79% 80%

68%64%

Ad-free SubscriptionService

Streaming app thatrequires a

cable/satellite/telco login

Ad-supportedSubscription Service

Ad-supported FreeService

Online-based cable TVprovider

Regular (not cable) TV Cable/Satellite/Telco TV

Availability of Unique Content Ratings for Each Platform(% Who Rate it Excellent/Good Among Platform Viewers)

(e.g., Netflix, Amazon

Prime, HBO Go/Now,

Showtime App, etc.)

(e.g., Hulu with

limited ads, CBS

All Access with

limited ads, etc.)

(e.g., YouTube, Pluto,

Roku Channel, Crackle,

Vevo, Xumo, etc.)

(e.g., Sling TV,

DirecTV Now)

(e.g., ABC, CBS, NBC,

FOX, etc.) using an

antenna or ‘over the air’

(e.g., live TV, DVR, VOD)(e.g., Discovery GO, FX

app, WatchESPN, Xfinity,

Spectrum, etc.)

Availability of Unique Content: Some platforms are better rated than others in terms of availability of unique content

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Ad Receptivity and the Ad-Supported OTT Video Viewer

October 2018