November 1, 2021 Gamut Presents / Whitepapers

Drive Incremental Reach with OTT

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Drive Incremental Reach with OTT

We’re reaching the tipping point. eMarketer reports that in 2022, there will be 238M over-the-top video streamers[1] in the U.S., a comparable estimate to the declining reach of linear TV consumers projected at 240M[2]. And 2023 will be the year that OTT is expected to garner a larger audience than traditional broadcast and cable TV combined. Once deemed the medium to reach the masses, linear TV alone can no longer connect brands with the majority of key age demographics, specifically Adults 18-49 and 25-54. The consumer shift to streaming has opened up an opportunity for advertisers to maximize reach beyond broadcast and cable with OTT video.

The Limited Reach of Pay TV

U.S. households are increasingly becoming digital-first homes. From remote work and shopping to the usage of smart devices and telemedicine, the reliance of home internet for daily activities is more prominent than ever. To satisfy the many digital needs of household members, a higher value is put on broadband connection than cable/satellite TV service. The result: cord-cutting. Residential subscriptions are being cancelled at a rapid rate, dropping 2-2.5% each quarter since 2Q 2020[3]. Next year, there will be over 61M broadband-only homes[4], households that subscribe to a wireline broadband service and not multichannel video. This estimate tops the 59M U.S. homes that will subscribe to a cable, satellite or telco video service in 2022. With penetration at less than 50%, more than half of households in America will be missed as matter of course via advertising placed through linear pay TV.

Reaching Cordless Consumers

Streaming is the go-to video viewing method for cord-nevers and the entertainment alternative for cord-cutters. It provides consumers with programming options spanning across all content categories – network shows, news, sports and more. Ad-supported OTT services continue to gain viewers across all age groups making it an optimal medium to connect with consumers, specifically the cordless segment. In fact, 4-in-5 cord-nevers/cutters engage with ad-supported OTT video monthly[5]. These consumers are a valuable segment for brands to target and reach. There is representation from all generations and shopper types.

OTT is Not Just For Cord-Cutters

While streaming services are more likely to draw viewers that do not subscribe to traditional pay TV, that doesn’t mean that OTT is uncommon among linear TV viewers. The majority of corded consumers engage with video from streaming services, including ad-supported programming. In fact, ad-supported streaming has become more abundant among this segment year-over-year, currently reaching two-thirds of the corded group (+5 percentage share points vs. last year)[6].

A Trusted and Proven OTT Solution

Gamut TOTAL® delivers everything the evolving video landscape demands: audience, data, reach, transparency – and total expertise. By leveraging deep relationships and exclusive premium inventory, we have the ability to tap into ad-supported OTT audiences whenever and wherever they are – this includes the once “hard to reach” cordless segment. Currently, half of the audience that Gamut TOTAL delivers resides in a home that does not have access to cable/satellite service[7]. This group will only grow as the audience is also inclined to draw future cord-cutters contributing to a scaling total streamer audience.

Our expertise in campaign delivery promotes optimal frequency that connects with unique viewers without over-saturating the audience. Plus, our partnership with iSpot provides always-on, cross-device reach and frequency measurement using Automated Content Recognition (ACR) technology designed to measure the true reach of ads served across linear TV and OTT.

The ability to deliver audience reach extension is demonstrated by our highly-successful campaign results. For example, a luxury automotive advertiser expressed that connecting with potential buyers beyond a linear TV buy was a key strategy goal for an upcoming campaign. Running OTT advertising through Gamut TOTAL that targeted affluent households in major U.S. markets allowed the advertiser to succeed on that KPI. Nearly two-thirds of the streamers exposed by Gamut’s OTT campaign did not see the ad on linear TV.

Connecting with video viewers not captured by a traditional TV campaign is proven true across a diverse set of advertiser categories and audience targets, all resulting in significant unique reach.

Streaming Video is a Must-Buy for a Reach Strategy

OTT is now mainstream and should be part of every campaign media mix. It reaches diverse viewers while meeting various performance objectives, including driving awareness of your brand. Contact Gamut today to learn more about how you can add a unique, incremental OTT audience to your locally-targeted broadcast or cable TV buy.

[1] eMarketer: US OTT Viewers, September 2021

[2] eMarketer: US TV Viewers, April 2021

[3] S&P Global: Kagan US Multichannel HH Estimates, May 2021

[4] S&P Global: Kagan Broadband-Only HH Estimates, June 2021

[5] MRI-Simmons: Cord Evolution Study, July 2021

[6] MRI-Simmons: Cord Evolution Study, July 2021, July 2020

[7] MRI-Simmons: Cord Evolution Study, July 2021

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