Retail Observer

RETAILOBSERVER.COM DECEMBER 2020 56 O ver the Top, or OTT, is a reference to how web-based video is delivered – without a set-top box. Streaming services such as Netflix, Hulu, Amazon, Roku, Vudu and others now deliver video content into a majority of the homes in the U.S. What began as a way for consumers to watch a movie studio's back catalog is quickly becoming the way vast audiences of consumers choose to stream their TV content … and even live programming! As these viewers (our customers) "cut the cord" and leave cable, satellite and other traditional pay TV viewing, it becomes vital for us to leverage OTT advertising to keep our relevant messages in front of our most relevant customers. Let's consider some research to help us understand how important this avenue of advertising has become: OTT Viewers: Recent studies show that by the end of 2019 there were over 205 million OTT users in the U.S., compared to 188 million traditional pay TV users. U.S. Households: Just prior to the pandemic, 64 million U.S. households, or more than half the homes in the nation, were already streaming TV, and viewed 86 hours of OTT content a month on average. That number is certainly higher in the wake of COVID-related home confinement. Ad-Supported OTT: Of consumers that use OTT, 73 percent confirm they have watched ad-supported OTT. Co-Viewing Value: Ninety-three percent of the time there are multiple people in the room when viewers stream content on their connected TVs. Major Impact that OTT Provides Advertisers: • 19 percent higher perception that a brand is innovative • 32 percent better perception that a brand has a unique story to tell • 67 percent more effective at driving purchase intent per exposure What's more, streaming users have grown across various consumer segments over the last two years, with over 41.1 million appliance and home furnishings shoppers now streaming video in a given week. And, according to Simmons National Consumer Survey, appliance, consumer tech and home furnishings shoppers are 33 percent more likely to be motivated by video advertisements, prompting a purchase. Here's the breakdown: • Furniture & Mattress Shoppers: +48 percent • Major Appliances Shoppers: +37 percent • Electronics Shoppers: +25 percent The numbers don't lie. OTT advertising is even more relevant during the current stay-at-home COVID crisis, and the number of users will continue to grow long after the virus is vanquished. It's estimated that six people are cutting the cord every minute (!), suggesting that the future of TV is cable-free. Moreover, with this form of marketing the advertiser (in this case the retailer) controls where and when their ads are delivered. And working on behalf of BrandSource buying group members, AVB Marketing, the group's digital marketing arm, can target consumers who are shopping for relevant products. OTT is a truly important tool for anyone's media belt, and the program that AVB Marketing has developed for BrandSource members is second to none. OTT'S GOTTA HOLD ON ME Dan Evans Technology of Business Trends RO Dan Evans is Product Manager – OTT at AVB Marketing, the digital marketing and e-commerce arm of AVB/ BrandSource, the nation's leading merchandising and marketing co-op for independent appliance, home furnishings and consumer tech dealers. It's estimated that six consumers are cutting the cable TV cord every minute of every day.

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