
#OTTInsights / VOL. 01 / FREEWHEEL SIGNATURE INSIGHTS 5
OUR NOTE ON METHODOLOGY
In order to better understand viewers’ behavior and the opportunity OTT affords, we selected
a sample of U.S. FreeWheel clients representing over 95% of OTT-driven digital ad views in our
research data set, which is also used for the quarterly FreeWheel Video Monetization Report. The
analyses using FreeWheel data were conducted using data from Q1 2017. In some cases, sampling
was applied given the large amount of data and will be called out in the charts within.
While OTT brings together the best of digital video and linear television, it doesn’t neatly t
into either category. Our research identied three concerns from marketers and agencies, and
suggests that misconceptions around the platform have resulted in OTT being under-utilized
relative to its true value:
• VIEWABILITY & FRAUD: Because OTT is an IP-based platform, marketers have carried
over their concerns from desktop around viewability and fraudulent trafc. However, OTT
is inherently less vulnerable to both challenges due to high authentication rates, the
devices’ closed environments, and the nature of the viewing experience.
• INCREMENTAL REACH: Advertisers should not be concerned that OTT audiences overlap with
people they’re reaching through linear buys. In reality, OTT has compensated for a large part of
decline in time spent with Live TV, replacing traditional linear viewing for many consumers. We
found that viewers treat OTT devices just like traditional television — they watch a large amount
of live streamed content and tune in mostly during the popular, primetime TV hours. Therefore,
marketers who only advertise through linear TV spots would miss out on these OTT audiences,
who are watching the same content during the same time period, but on a different platform.
• AUDIENCE MEASUREMENT: While OTT is the best of linear and digital, it doesn’t t neatly
into the measurement frameworks used by either. There are many ways to measure and
transact OTT if advertisers are willing to be exible and innovate, and safe automated
marketplaces open up new targeting and measurement opportunities for buyers.
No doubt there is still work to be done. However, these complexities should not be enough to
dissuade advertisers from taking advantage of this valuable inventory.
To fully realize the potential of OTT, premium video publishers also must position their
organizations to navigate these challenges. This includes:
1. Equipping sales forces with the right tools and information to represent the value of OTT
inventory and address agency concerns.
2. Ensuring technology integrations are optimized to support seamless execution of OTT campaigns.
3. Leveraging 1st and 3rd party data to overcome measurement challenges while
increasing the value of their inventory.
We’re extremely optimistic about the future of OTT and look forward to partnering with you to
unlock its true potential.
Thank you,
FreeWheel Advisory Services