Third-party data drives OTT ad buys

Last updated: 02-11-2018

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Third-party data drives OTT ad buys

According to a SpotX report, TV is Total Video: Predicting OTT and the Future of Video Advertising, changing patterns in the consumption of video have resulted in significant shifts in video advertising strategies. Researchers surveyed 41 total respondents, consisting of 68% at the director level or above, of which 22% were either VP or C-level executives – and found that 80% of all respondents agreed that the changing viewing habits had resulted in the requirement (or ability) to deliver cross-platform audience reach. A full 100% of advertisers said that this was the biggest resulting strategy change for them."As more viewers turn to OTT services for their video, advertisers need to follow viewers to the platforms they are using," said Michelle Abraham, senior analyst at S&P Global Market Intelligence, which conducted the report . “OTT services provide both a challenge and an opportunity for advertisers and those who want to monetise their content via advertising.”Over 60% of respondents say they value pay-TV and OTT audiences differently. About 69% of content owners value audiences differently, while only 44% of advertisers do; about 36% of respondents said that OTT offers higher audience valuations on total reach. Yet for all of that, only about 11% of advertisers spend 21 to 40% of their advertising dollars on OTT platforms. Within two years months, however, this share is expected to grow to two thirds.Advertisers unanimously agreed that third-party data was a strong driver for the adoption of audience-based buying and selling of ads. Content owners were almost as unanimous, with 94% saying that leveraging third-party data is the primary business driver for moving to audience-based buying and selling of ads. Also, 69% of content owners concurred that they would be focusing more on contextual advertising as a result of changing viewing habits.Among advertiser respondents, 44% expect to see an 11-20% increase in return on advertising spending by moving from traditional ad buying to audience-based buying and selling, while an additional 33% expected a 6-10% increase. For advertisers, which made up 78% of respondents, challenges exist in making the transition, especially when it comes to data security and measurement."The OTT ecosystem is continuing to evolve and it's important for all of us in the industry to examine the current state of the market so we can better understand the needs and wants of publishers and advertisers alike," said Mike Shehan, co-founder and CEO at SpotX . "The results from this survey prove that ad dollars are shifting beyond the scope of traditional television for a variety of different reasons but that we still face challenges, many of which SpotX is working to tackle head on."Ashwin Navin, co-founder and CEO of TV data and analytics company Samba TV, added: "OTT enables precise identification of viewing households, providing highly granular audience segmentation for targeted advertising. As the industry moves more towards audience-based buying, OTT will increase in importance as an efficient way to reach desired targets, and this report from SpotX sheds light on how the industry is thinking about OTT ad strategies."


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