MIAMI — TV ad rates are known for being amongst the highest in the business. So what happens when ads get pumped to a TV set over an internet connection?

According to an executive from publishers’ advertising trade body, OTT TV ads should be higher-priced than those on TV.

Asked how the over-the-top rates should compare with traditional TV, IAB sales and marketing SVP Anna Bager said: “What we can say about OTT is, there should be a higher value in my opinion, because it’s a deliberate consumer.

“It’s somebody who … went through a number of different steps to get to the content. He has his own personal prime time that he decides to connect with that content. And he does it and he knows that there may be ads. It’s a deliberate consumer. It’s not someone who’s just kind of putting the TV on and walking around his house.”

Bager was speaking in this video interview with Beet.TV during Beet Retreat, after launching IAB’s report on The OTT Co-Viewing Experience.

According to the report:

  • 93% of viewers engage in some co-viewing on the big screen.
  • 92% of them pay moderate to full attention to the video content, dropping to 79% for advertisements.
  • When that co-viewing is over OTT, co-viewers have a greater propensity to talk about on-screen brands.
  • They are more likely to change their minds about an on-screen brand.

But, with so many gadgets, dongles, boxes and sticks now offering ways to view, defining “OTT” is never easy.

“We’re in the business of setting definitions and that one took us like a year, maybe more. I’m not sure exactly how to define it,” Bager concedes.

This video was produced at the Beet Retreat Miami, 2017 presented by Videology along with Alphonso and 605. For more videos from the event, please visit this page.