×
You will be redirected back to your article in seconds

Consumers Who Watch Mostly Ad-Supported Internet Video Skew Younger, Higher Income (Study)

It turns out there’s a large group of Americans who don’t watch just Netflix or other ad-free video services: 45% of consumers who regularly watch video online say they mainly watch ad-supported over-the-top services.

That’s according to a new study from the Interactive Advertising Bureau. The online-advertising trade group’s research also found that the largest audience segment of ad-supported OTT viewers comprises adults 18-34 years old, and on average they have higher incomes than the overall U.S. population (with 34% of ad-supported OTT viewers reporting income of $75,000 or more).

In addition, consumers who mostly watch ad-supported OTT services skew higher among men; black and Asian consumers; and households with children, the IAB study found.

As a cohort, ad-supported OTT viewers are harder for advertisers to reach through conventional TV (while pure subscription-based video-on-demand services like Netflix, Amazon Prime, or HBO Now do not carry advertising). On average, primarily ad-supported OTT viewers watch 10.4 hours of cable TV per week versus 14.7 hours among TV-only viewers. Meanwhile, about 52% of ad-supported OTT viewers are cord-cutters or cord-shavers, with over one-third citing “better content on streaming services” as a reason for choosing ad-supported OTT over other services.

IAB released the findings at its inaugural NewFronts West advertising event in L.A., which runs Oct. 9-10. Sue Hogan, the trade group’s SVP of research and measurement, said the study points to “the high value that brands should place with increased investment in ad-supported OTT.”

The IAB’s study defined ad-supported OTT video viewers as those who watch video through a free streaming service with ads (such as YouTube, Pluto, the Roku Channel, Crackle or Vevo); via an online pay-TV provider (e.g., Sling TV, DirecTV Now); through a streaming app that requires a cable, satellite or telco login (e.g., Discovery Go, FX app, WatchESPN, Comcast Xfinity); or through a subscription-streaming service that includes ads (e.g., Hulu or CBS All Access with limited ads).

  U.S. General Population Watch Ad-Supported
OTT Most
Watch Subscription
VOD 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%

Source: IAB and Maru/Matchbox

The IAB study also found that the predominantly “ASV OTT” cohort showed higher ad receptiveness than those who mostly watch SVOD or only watch TV — which is not surprising, but a key point for marketers. About 59% of ASV OTT users agreed that “I don’t mind seeing ads if I’m getting to watch content when I want,” compared with 47% of primarily SVOD viewers and 34% of TV-only viewers.

In addition, ad-supported OTT viewers reported spending more on online subscription purchases — $119 per month — than subscription VOD viewers, at $89 per month. ASV OTT fans also are more likely to follow social influencers: 25% said they regularly watch videos from YouTube personalities, vs. 17% of SVOD-dominant consumers and 5% of TV-only viewers.

The IAB report is based on two online surveys, fielded among Maru/Matchbox’s Springboard America online panel. The first was an omnibus survey polling 1,500 nationally representative U.S. consumers on Aug. 10 to determine the profile of ad-supported OTT video viewers; the second surveyed 1,223 U.S. consumers 18 and older with age/gender quotas set to reflect viewership profiles from the omnibus study and was fielded Sept. 25-26, 2018.

The “Ad Receptivity and the Ad-Supported OTT Video Viewer” study is available to download at iab.com/ad-supported-video-ott.

More Digital

  • CBS Taps Canvs Platform to Analyze

    CBS Turns to Artificial Intelligence to Glean Viewers' Emotional Responses to TV Shows

    CBS’s research team is getting a faster read on how viewers respond emotionally to its TV shows — by using the dispassionate logic of machines. The broadcaster is using the data-analytics platform developed by New York startup Canvs, which uses proprietary artificial-intelligence processing to parse natural-language comments. CBS started using the Canvs Surveys tool to [...]

  • Hiccup (Jay Baruchel) and his Night

    ‘How to Train Your Dragon: The Hidden World’ Again Tops Studios’ TV Ad Spending

    In this week’s edition of the Variety Movie Commercial Tracker, powered by the TV ad measurement and attribution company iSpot.tv, DreamWorks Animation claims the top spot in spending for the second week in a row with “How to Train Your Dragon: The Hidden World.” Ads placed for the fantasy film had an estimated media value [...]

  • ‘Tomorrow and Thereafter,’ ‘Diane Has the

    MyFrenchFilmFestival Prizes ‘Tomorrow and Thereafter,’ ‘Diane Has the Right Shape’

    Actress-director Noémie Lvovsky’s “Tomorrow And Thereafter,” a heartfelt homage to the director’s own mother, and Fabien Gorgeart’s “Diane Has the Right Shape,” about one woman’s surrogate motherhood, both won big at the 2019 UniFrance MyFrenchFilmFestival which skewed female in its winners and viewership, making particularly notable inroads into South East Asia and Latin America. Opening [...]

  • soundcloud-logo

    SoundCloud Launches Tool to Distribute Music to Other Streaming Services

    SoundCloud today announced a new distribution tool that enables artists to distribute their music to other streaming services. The feature, currently in open beta the service’s Pro and Pro Unlimited platforms, means that artists can upload their music to SoundCloud competitors including Apple Music, Amazon Music, Spotify and Instagram. “Creators using the SoundCloud Premier distribution feature keep [...]

More From Our Brands

Access exclusive content