Brands can leverage AVOD services to promote next to premium content

New Ideas in MarketingEssential news for marketers, summarised by YouGov
November 17, 2021, 3:43 PM UTC

50% of households watch premium movies via streaming services instead of cinemas, finds Roku's recent survey of 2,852 US adults.

According to Mike Shaw, Roku's Director of International Ad Sales, the perception that AVOD services don't provide a premium environment for ads is incorrect. Shaw notes that AVOD platforms provide a cost-cutting alternative to numerous paid streaming services to many consumers.

Given that AVOD services provide higher engagement levels and microtargeting benefits, brands can leverage them to ensure their content appears next to premium content. Currently, 80% of US homes use streaming services.

71% of those are aged 50 to 70 and use streaming in some manner. Nearly half of them stream sports. However, advertisers need to commit at least 10% of TV ad impressions to OTT/CTV to get at least 15% incremental reach, as per TVSquared.

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