« Back to Posts

How AVOD Provides an Answer to Subscription Fatigue

OTT has become a premier part of the marketing mix for brands, now that some 46 million US households own a smart TV. But because many of the popular Smart TV apps — Netflix, Amazon Prime Video, Hulu — operate on a subscription-based model, consumers are increasingly overwhelmed by multiple monthly fees.

Fortunately, ad-supported video-on-demand (AVOD) services are providing free options for the digital TV ecosystem. For example, Pluto TV is solving subscription fatigue with a slate of more than 100 live TV channels, that includes news, movies, and TV shows on-demand .

It also provides value proposition for brands. Due to 95% completion rates and digital targeting capabilities, OTT is completely redefining what we know as TV advertising. OTT revenue exceeded $2 billion in 2018, and with superior targeting, advertisers will continue to include the platform in cross-platform buys. This is especially important in trying to reach young, diverse audiences, who are increasingly cutting the cord.

Research shows that the average age on broadcast is over 50, but networks like Viacom are cultivating much younger audiences of 30 and older. When cross-platform linear, OTT, and Pluto’s capabilities are packaged together, this enables advertisers to reach more than 50% of the 18-34 demographic in the country. Plus, this is dramatically extendable via social, with the additional reach extension activating more than 80% of the 18-34s.

Pluto TV provides a holistic solution for both advertisers and consumers. The free price point is appealing to viewers, while the opportunity to reach young cord-cutters through digital targeting is a win for advertisers.

*Valerie Bischak is EVP, Advertising Sales, Viacom Media Networks at Viacom