Why advertising on OTT connected TV devices is so effective

In a recent edition of the Deloitte Digital Democracy Survey, it was revealed that 83% of U.S. consumers will skip an online video ad if given the option. The ability to “pay” for content with their attention is a very effective way to build an audience without the friction of signing up for a subscription model.

To learn more about some of the ways that publishers are monetizing their OTT services, check out one of our previous posts here on OTT monetization strategies.

Focusing on the topic at hand, one of the main reasons that viewers are able to skip ads has to do with the rising trend of using ad-blocking software.

“Nearly half of Millennials use ad-blocking software”

While this may be an effective way for this group of individuals to bypass seeing an advertisement and essentially not “pay” publishers with their “attention currency” — it comes down to the platforms that they’re choosing to advertise on.

While it’s not be impossible, it’s substantially more difficult to install any sort of ad-blocking software on connected TV devices like Roku, Apple TV, and Amazon Fire TV. This is the main reason why advertising on these platforms is hands down more effective than other distribution methods — there’s no way for viewers to skip ads.

That being said, while there may not be a way for a viewer to intentionally block or skip an ad —there’s no way to guarantee you have their full attention. Viewers these days are multitasking now more than ever. 99% of Millennials are texting, on a social network, reading emails, or shopping online.

Additionally, advertising relevance plays a key role in how engaged a viewer is. Another surprising conclusion from the Deloitte report was that

“67% of consumers find mobile ads on their phones to be irrelevant.”

Data from these OTT connected TV devices will be able to provide more insight and information than ever before. This will aid in allowing advertisers to tailor which ads are served to a viewer and hopefully drive that relevance statistic down. Check out our post on OTT Analytics and Business Intelligence here . Likewise, if you’re new to the OTT world check out our OTT eBook which covers topics like trends and landscape, strategy, monetization, product and more!