As TV viewers continue to spend more time watching video content via connected TVs and over-the-top (OTT) video services, advertisers need to make sure that they’re there, too.
2018 is the year in which local businesses will find success with OTT advertising.
Maybe your clients are asking for OTT advertising, your boss is asking you to boost OTT advertising sales, or you have read about OTT advertising and wonder how it would work best for your business.
OTT audiences are widespread and engaged. Everyone agrees that there’s value in OTT advertising, and it’s incredible, but you need to justify it to the client. And the client’s first question is “Why OTT?”
Our OTT sales experts are sharing three key facts and stats that you should share with your clients in any conversation you have about OTT to answer the question “Why OTT?”
Here are three tips from our in-house OTT sales experts to help you better sell OTT ads to local and small-business owners.
Decreasing pay-TV subscribers
Winter is here for cable or satellite operators.
American consumers are canceling conventional pay-TV service at a much faster rate than previously expected. According to an analysis of Nielsen data published last week, the erosion of traditional cable TV subscriptions is accelerating, declining by 3.1%, based on Nielsen’s new May 2018 cable network universe estimates.
Over the last few years, there has been a fierce debate over whether "cord cutting" – people ditching their expensive cable TV packages – is a trend or an overblown media narrative. But results show that the pay-TV industry already lost about 762,000 subscribers in the first quarter last year, and estimates the median cable network tracked by Nielsen lost 2.7% subscribers this year, despite an expected 1.0% expansion in the number of TV households for the month.
“Decreasing cable subscriptions are the bedrock for why we preach OTT. Traditional TV advertisers are also beginning to use connected TV and OTT delivery methods to regain the audiences lost to digital streaming.”
Kevin Gianatiempo, Chief Revenue Officer, ZypMedia
OTT adoption on the rise
2017 saw tremendous consumer growth in streaming TV services, and 2018 is set to be even bigger. This year, eMarketer estimates that 181.5 million U.S. consumers will use connected TVs at least once every month -- equating to more than 55% of the U.S. population. And by 2021, that number will expand to 194.4 million, which is almost 58% of the population.
“Consumers are not abandoning TV content but instead changing how they choose to watch it. OTT adoption by households grew by almost 340% in 2018, quickly outpacing other devices such as smartphones and tablets, which weren't even in the double digits.”
Brooke Adams, Regional Director, Sales, Southeast, ZypMedia
OTT isn’t just for Millennials
It’s true that Millennials were among the first to cut the cord and embrace OTT. But now, thanks to the increased ease of access, all generations are welcoming OTT into their homes, especially Gen Z and Gen X. Digital video advertisers are turning to connected TV and OTT to extend their audience reach even further in the digital realm.
Audience data gathered by Simmons Research shows that cord cutters are not just Millennials anymore. In fact, the majority of viewers are between the ages of 25-54. They are educated and tend to have a higher income level.
GfK MRI’s latest “Cord Evolution” study looked at the streaming attitudes and behaviors of 10,000 people across the United States. Here are the results:
- The average age of “cord cutters” (people who have eliminated cable subscriptions) is 43 (accounting for 8% of the total U.S. population).
- The average age of “cord nevers” (people who never had cable) is 34 (accounting for 9% of the total U.S. population).
- Millennials account for 35% of cord cutters and 50% of cord nevers.
There is a massive opportunity for you to sell to any type of audience via OTT advertising. You can reach a premium audience who are not only seeing your ads but also have the spending capacity to buy your product or service.
“OTT is growing by leaps and bounds. To gain substantial penetration among TV households and people with a functional spending capacity, it’s essential for your media mix.”
Erin Hagood, Regional Director, Sales, Mid-Atlantic, ZypMedia
When you're ready to grow your OTT sales, we're here to help you accelerate your success!
SpotX has ranked ZypMedia as one of the top 5 DSPs to help it reach 18x year-over-year growth in advertiser dollars spent on OTT in 2017. We help professionals like you sell more over-the-top advertising every day.
You have questions about selling OTT advertising. We have answers. Learn more about how an OTT solution can support your business growth.