The Brand Opportunity for Cord-Cutting Audiences

As consumers realize they no longer need to pay for cable TV, where they likely pay for channels they never watch, the cord-cutter club is growing. Cutting ties with cable giants and finding entertainment through platforms like Netflix, Roku or MLB.TV, customers are honing in on exactly what they want to watch and paying for just that.

However, advertisers may have a harder time fitting into this new era. In years past, advertisers benefitted from limited choice. Consumers were not able to select the channels in their cable bundle and they weren’t able to skip ads — but now they can. It truly is the age of the consumer.

As Netflix has shown us, customers are willing to pay a low monthly subscription cost to binge on episode after episode of “Orange is the New Black,” without interruption — or with Hulu and others— minimal and targeted ads. And even if a customer is subscribed to multiple OTT services, those online video bills often still add up to less than what their cable company was charging for 400 channels they will never watch.

How can brands jump in and take a piece of the OTT pie?

Right now all signs point to data and analytics. Whereas linear TV audiences bought bundles, OTT audiences buy what they like. The OTT model captures valuable data that any brand would love to have and that is: What are people interested in? If advertisers know this, digital ads can be targeted and tailored for the audience. For example, fourteen-year-olds no longer need to sit through car insurance ads.

As online behaviors continue to be tracked and analyzed, ads become more relevant to the consumer.

Premium video providers play an important role, however, in bridging this gap between viewers and brands. Ultimately it is up to video providers to work with advertisers here. Why? Because it’s advantageous to both parties. As video providers track viewer’s engagement, those insights are gold for brands.

Video platforms like Zype make this possible by offering advanced analytics to provide deep insight into the viewer’s habits and behavior.

To learn more about tracking video engagement and the opportunity for advertisers, take a look at these resources:

Watch: Engaging audiences on Connected TV, a free webinar hosted by Tapad and Zype.

Learn: How to track video engagement using the Zype platform.