VAB Says OTT Ads Work Best Combined With Linear TV

With over-the-top becoming the shiny new thing catching advertisers' eyes, the Video Advertising Bureau issued a new report that argues that OTT advertising is most effective in combination with traditional linear TV.

The VAB notes that more people are streaming video these days, with 90% of adults 25-34 doing it, up 18% from 2016. And 73% of the adults who stream say they watch ad supported OTT video, as opposed to commercial-free services.

While time spent streaming is up 28% from last year and the percentage of OTT-only homes has grown 15% over the last two years, those homes still represent only 10% of video households.

The VAB said marketers benefit by using a strategy that combines the broad reach of linear TV with ad supported OTT.

The organization points to studies that found that viewing an ad on both linear TV and OTT leads to a twofold increase in brand favorability lift.

Viewers spend more time engaging with ads on connected TV devices than with ads online. The completion rate for CTV is 25% higher than for ads viewed on desktops or mobile devices.

Case studies from Samsung show that using data-powered OTT can provide incremental reach to a campaign and lead to improved business outcomes.

“Combining linear TV and ad-supported OTT inventory can deliver even stronger campaign results and increased business outcomes for marketers,” said VAB CEO Sean Cunningham. “Advertisers utilized over nine trillion premium TV ad impressions in the U.S. in 2018. Adding OTT to the media mix will extend the reach and engagement of the premium, brand-safe environment marketers are demanding in order to drive product and services sales growth.”

Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.