More and more Americans are cutting the cord. Currently, only 56% of Americans watch TV via cable or satellite service, a huge decrease from 76% in 2015. However, marketers have not yet caught up to this trend with their ad spending.
Despite the steady increase in people “cutting the cord” and the continued decline of cable/satellite TV viewers, over-the-top (OTT) ad spending only accounts for 3% of total digital spend per month. However, there is a reason for this minimal percentage: most of the OTT platforms are subscription services with minimal to no ad loads.
Competition in the OTT space is increasing, however, and price point is important. With many Americans unwilling to pay more than $30/month for a streaming subscription, OTT providers need to find ways to keep their costs down. Advertisements can help with cost-cutting.
With 78% of people in the US having access to a subscription video service, marketers have a real opportunity to meet consumers where they are with video content.
Is your organization doing any OTT advertising? If so, what have your results been? We’d love to hear about your experience!