ZypMedia OTT Insights from Q3'19

Karen Sowa
2019 Q3 OTT Insights Blog Header
By Karen Sowa
November 25, 2019
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With all the recent media coverage on streaming wars you’re probably aware that OTT viewership is growing quickly, but how are local advertisers responding to the opportunity?

We analyzed data from all of the OTT campaigns powered by our platform throughout Q3 2019 to get a deeper look at the current local advertiser landscape. Keep reading to find out the results of our in-depth analysis.

Local advertisers continue to buy more OTT advertising.

Advertisers continue to increase the amount of OTT ads they buy on our platform every quarter. ZypMedia served 158% more OTT impressions in Q3 2019 compared to Q3 the year before. The number of OTT impressions served has grown 18% compared to Q2 2019. 

2019 Q3 OTT Insights - OTT Impression Delivery gray

 

A large majority of OTT ads in Q3’19 were delivered on a CTV device, likely in a lean-back environment.

2019-Q3-OTT-Insights---top_three_devices-V2

CTV remains the top way viewers connect with OTT content. OTT advertising growth is fueled by good performance with a VCR that remained steady at 97% and the viewer migration towards streaming. 63.3% of the US population will be OTT video service users by 2020 according to eMarketer.

Takeaway: The OTT advertising adoption growth coupled with the big screen delivery we are seeing is a strong indicator that the future of TV is AVOD streaming. OTT ads effectively get in front of the growing number of viewers who can’t be consistently reached through traditional TV advertising, making it the perfect addition to a complete local advertising strategy.

Advertisers buying in top categories vary their ad creatives.

Top categories remained fairly consistent compared to Q2’19, with ‘Automotive’ moving to first place in midwest, northeast, and south. The ’Home & Garden’ and ‘Health & Fitness’ categories also dominated across the country.

Here is a breakdown of the top three advertiser categories in each region in the U.S.:

2019 Q3 OTT Insights - regional_breakdown

 

Takeaway: Many of our advertisers are opting to run campaigns with multiple creatives and targeting optimizations instead of one long single creative campaign. 60% of all campaigns ran in Q3’19 ran less than one month. The top-performing categories follow that trend and were most likely to run campaigns between 1 and 2 weeks long.

“Digital advertising gives advertisers the flexibility to be more granular with their targeting approach, allowing them to have a deeper understanding of the audience they are catering the creative to reach. Running shorter campaigns with multiple creatives helps them combat viewer fatigue and test the effectiveness of new creative concepts.“

Suzanne Kimm, Senior Manager, Ad Operations, ZypMedia

 

Roku continues to reign as most popular device.

As viewer interest in OTT grows, companies continue to invest in building hardware options to facilitate access to OTT content. Controlling the viewer’s environment opens up opportunities for revenue partnerships and a better understanding of viewing trends. We think that devices with easy-to-learn UI and access to the most publishers will ultimately win in the long run.

2019 Q3 OTT Insights - the_most_common_top_5

 

Takeaway: Roku remains the most common device viewers are using to access streamed content, and we continue to see a back and forth between Amazon Fire TV Stick and Google Chromecast for second place. In Q2, Google Chromecast pushed ahead of Amazon Fire TV Stick, but Amazon Fire TV Stick took 2nd place back in Q3, following the back and forth battle between the streaming devices.

Reach your local streaming audiences with OTT advertising and use these key insights for your next OTT ad campaign.


For local advertisers looking to access cutting-edge marketing technology, ZypMedia delivers the full package. We can help you and your organization place OTT ads in front of quality local audiences while helping you drive sales and generate a positive ROI.

We love hearing about the results OTT is bringing to advertisers just as much as we love sharing the insights we have to help educate and inform on OTT. If you have a success story in your market or for your brand, drop us a note and your story could be featured in a future article.

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Picture of Karen Sowa

Karen Sowa

Karen is a marketer with over a decade of success in solving business challenges with digital companies. She is currently the Sr. Director of Marketing at ZypMedia and can likely be found drinking an iced latte behind a laptop somewhere in the San Francisco Bay Area.
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