The Young and the Restless- Generation iPad
Using OTT to reach Gen Z consumers.
When I mention the young and the restless I am talking about the group of consumers who comprise the younger market segment. These are generation Y known as millennials and generation Z known as post millennials, the iGeneration, and generation Tech. Generation Z consumers are reportedly better multi-taskers, less focused, and are less likely to look for bargains than millennials. They are also deemed more entrepreneurial than their predecessors. Generation Z also has higher expectations of brands. They’ve grown up with instant gratification and that is what they expect. Being a fully technical generation, they are not loyal tv viewers. They are more likely to get their content Over the Top (OTT), that is streaming. According to the Video Advertising Bureau (BAV), ad spending on OTT in 2018 was expected to grow to 40%. The most interesting part of this study is that to get free content consumers are willing to watch ads. Ad supported video-on-demand (AVOD) services keep consumers happy watching free content and provides a great opportunity for brands to stay in front of consumers. A key benefit of AVOD ads is that these ads cannot be skipped. Another key benefit of AVOD is that it is targeted to specific consumers.
Walmart announced that it is growing its ad-supported tv and movie service so that viewers can buy at Walmart what they see in the movie. The opportunities to reach consumers of all generations via AVOD is enormous and will only grow as more top players build out their AVOD services and new entrants work to take a piece of the pie. There are some challenges with AVOD that include the lack of consistency, the fragmented players, and the identification of unique audiences across the various AVOD providers.
What we know for sure is that AVOD gives brands a better opportunity to talk to their target customers with relevant and timely information that consumers are willing to see. As you look to implement your 2019 and beyond marketing strategy, talk to your ad agency and marketing crew about AVOD and how you can use it to promote your brand. AVOD is not video and it is not tv. However, the strategies used to advertise on these media can help you create relevant and effective AVOD content.