Expand reach of linear TV campaigns with Amazon OTT
April 12, 2021 | By: Maggie Zhang, Head of OTT Measurement and Research
Behind the Streams: In this blog series, we’ll help you to gain insights and learn about the latest trends that are shaping OTT (over-the-top) video advertising.
In two years’ time, non-pay-TV households in the US will surpass pay-TV households,1 with more viewers turning to streaming. That means advertisers must rethink their media strategies, beyond traditional pay TV, to engage this next generation of viewers who cannot be reached with linear TV campaigns.
Amazon Advertising conducted an analysis across Amazon OTT campaigns in 2020 using industry-recognized third-party measurement to help brands understand how OTT video advertising can complement their linear TV campaigns. In this post, we will discuss our findings around the benefits of the Amazon OTT audience.
Here’s how Amazon OTT can help brands reach new audiences
Benefit #1: Amazon OTT delivers incremental reach and unique audiences to linear TV campaigns.
In an earlier blog post, “What is incremental reach, and why should you care?," we defined incremental reach as the unique audience an OTT video ad campaign engages, in addition to the audience reached by a brand’s linear TV campaign. In our study, we found that Amazon OTT campaigns delivered an average of 6.5% incremental reach to a brand’s linear TV campaign reach. That means if you had a campaign that engaged 100MM viewers on linear TV, you could reach an incremental 6.5MM viewers if you added Amazon OTT video ads to your media mix.
Figure 01: Amazon’s ad-supported OTT delivers an average of 6.5% incremental reach to an advertiser’s linear TV campaign reach.
To help further contextualize this incremental reach, we also found that three-quarters (74%) of the audience engaged by OTT campaigns were exclusive to Amazon―meaning, they were not reached by the advertisers' linear TV campaigns.
Figure 02: On average, 74% of the audience reached by Amazon OTT is not reached by an advertiser’s linear TV campaign.
Benefit #2 Amazon OTT’s audience consists of a higher proportion of light TV viewers than linear TV campaigns.
As TV viewing behaviors continue to shift to streaming, advertisers are eager to engage non-linear TV viewers and light-linear TV viewers that are hard to reach with traditional TV campaigns. Amazon OTT has proven to be an effective and reliable avenue for advertisers to engage with these viewers. We found that nearly half (43%) of the audiences reached by Amazon OTT were light TV viewers, 6x more than linear TV campaigns (7%). With a higher concentration of this audience, Amazon OTT on average delivered 78% incremental reach of light TV viewers.
Figure 03: On average, 43% of the audiences reached by Amazon OTT campaigns are light TV viewers, 6x more than linear TV campaigns.
Benefit #3 Amazon OTT helps provide great viewing experiences by delivering lighter frequency than linear TV campaigns.
One of the biggest challenges today for advertisers is frequency management. Frequency indicates the number of times viewers are exposed to an advertiser’s message throughout a campaign, making it an important metric to the customer viewing experience. We found that linear TV delivered an average campaign frequency between 30 and 64 to heavy TV viewers. On the other hand, Amazon OTT campaigns delivered an average frequency of 4.4―less than half of the average linear TV campaign frequency of 9.5.
Figure 04: Amazon OTT delivers an average campaign frequency of 4.4, less than half of the average linear TV campaign frequency of 9.5.
We are continuing to expand our reach each day to new and unique audiences. We are also working hard to help advertisers reach the most relevant audiences and drive a full-funnel impact across our Amazon advertising solutions. We’ll continue to share more insights into how Amazon OTT is helping brands achieve greater brand lift and drive consideration beyond reach.