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OTT TV Ad Prices should be hiked – IAB 29 November 2017

In a video interview by Beet.TV with Anna Bager, Sales and Marketing SVP with Interactive Advertising Bureau (IAB), she commented about the pricing opportunities for advertisements The interview covered the release of IAB’s report on The OTT Co-Viewing Experience, which discusses TV and OTT advertisement. According to her, OTT TV ads should be priced higher than those on TV.

Bager said, “What we can say about OTT is, there should be a higher value in my opinion because it’s a deliberate consumer. It’s somebody who went through a number of different steps to get to the content. He has his own personal prime time that he decides to connect with that content. And he does it and he knows that there may be ads. It’s a deliberate consumer. It’s not someone who’s just kind of putting the TV on and walking around his house.”

According to the report, 92% of co-viewers pay moderate to full attention to the video content, and 79% pay attention to advertisements. When co-viewing is done over OTT, co-viewers have a greater propensity to talk about on-screen brands. They are more likely to change their minds about an on-screen brand.

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