Reach the Right Audience: Optimizing Ad Dollars Among Fragmented Choices in Streaming Media

The world of video and audio streaming is exploding. For digital advertisers, this presents a challenge: with audiences scattered across so many platforms, how do you make sure your message has an impact? Simply put, you need to be where your audience is spending their time. Even in our evolved media world, the legacy concepts of reach and frequency still matter a lot.

We use advanced research to guide our clients through this difficult fragmentation challenge. We identify the platforms that command the most use and engagement, allowing advertisers to optimize their budgets and maximize impact.

New Data Reveals Where Audiences Are Spending Their Time

Our latest Consumer Digital Media Study of over 2,900 U.S. respondents reveals some fascinating insights. We asked respondents how much time they spend on various streaming platforms and traditional media formats each day. By focusing on those who reported at least an hour of daily usage, we pinpoint the channels with the highest engagement and greatest potential for advertisers.

Why Focus on “Heavy” Users?

Platforms with a high percentage of dedicated users from each generation offer a unique advantage. Advertisers can achieve faster campaign results with a more focused ad spend. To further refine this approach, we also analyzed data for those who reported at least two hours of daily use, identifying the true “mega-users” of each generation.

Stay Tuned for More Insights

This analysis focuses on streaming and legacy audio and video, but excludes social media, which will be covered extensively in future updates. This is a small part of our complete media research report; clients receive a more in-depth analysis. We’ll be sharing more media trends soon, so be sure to sign up for free updates delivered directly to your inbox at nuvoodoo.com.

Results – Total Sample 14+

“On a typical day, how much time in total do you spend with…”

The data reveals that video platforms dominate attention in the Total Sample compared to traditional media platforms like cable TV or radio.  This strength is particularly notable among Gen Z and Millennials.

Results by Generation

Gen Z (Heavy vs. Compulsive Daily Use) – 1st: Spotify, etc. (61%, 37%), 2nd: Ad-Free CTV/OTT (56%, 34%), 3rd: YouTube (55%, 33%), 4th: Ad-Supported CTV/OTT (51%, 30%), 5th: Streaming Live TV (Cable Replacements) (46%, 28%), 6th: Local TV using an antenna (25%, 13%), 7th: FM/AM Music Radio (29%, 16%), 8th: FM/AM Talk Radio (24%, 14%), 9th: Podcasts (23%, 10%), 10th: Cable/Satellite TV (28%, 15%).

Millennials (Heavy vs. Compulsive Daily Use) – 1st: Ad-Free CTV/OTT (58%, 38%), 2nd: YouTube (58%, 37%), 3rd: Ad-Supported CTV/OTT (55%, 34%), 4th: Streaming Live TV (Cable Replacements) (53%, 35%), 5th: Spotify, etc. (49%, 29%), 6th: Cable/Satellite TV (38%, 24%), 7th: FM/AM Music Radio (32%, 15%), 8th: Podcasts (30%, 15%), 9th: Local TV using an antenna (28%, 15%), 10th: FM/AM Talk Radio (25%, 11%).

Our Take

Strong Alignment: Ad-supported and Ad-Free CTV/OTT platforms bridge generational gaps with high rankings across all groups. Streaming Live TV (Cable replacement services like Hulu + Live TV or YouTube TV) also garners widespread appeal as a transition between cable-style viewing and modern streaming preferences. YouTube is also popular across all demographics, with Millennials occupying the sweet spot for both heavy and compulsive use.

Generational Divide: Music streaming apps like Spotify dominate among younger audiences, while traditional platforms like Cable/Satellite TV and FM/AM Radio (Music and Talk) hold sway with Boomers. Meanwhile, over half of Gen Z (57.8%) and Millennials (50.5%) report zero use of traditional over-the-air TV, and a significant portion have cut the cord on cable/satellite.

Transition Demographic: Gen X truly stands out as the generational bridge in this data set, serving as a bridge between younger, tech-savvy generations (Gen Z and Millennials) and older, tradition-leaning Boomers. While Gen X still tunes into AM/FM radio and cable TV, they are increasingly adopting streaming alternatives. Advertisers should consider a balanced approach, incorporating both traditional and digital channels to reach this generation.

 

Gen X (Heavy vs. Compulsive Daily Use) – 1st: Ad-Supported CTV/OTT (60%, 36%), 2nd: Ad-Free CTV/OTT (59%, 35%), 3rd: Streaming Live TV (Cable Replacements) (53%, 36%), 4th: YouTube (47%, 26%), 5th: Cable/Satellite TV (42%, 29%), 6th: Spotify, etc. (39%, 19%), 7th: Local TV using an antenna (30%, 17%), 8th: FM/AM Music Radio (28%, 13%), 9th: FM/AM Talk Radio (19%, 9%), 10th: Podcasts (19%, 8%).

 

Boomers (Heavy vs. Compulsive Daily Use) – 1st: Cable/Satellite TV (55%, 46%), 2nd: Ad-Supported CTV/OTT (40%, 24%), 3rd: Ad-Free CTV/OTT (33%, 18%), 4th: Streaming Live TV (Cable Replacements) (30%, 20%), 5th: YouTube (25%, 12%), 6th: Local TV using an antenna (22%, 15%), 7th: FM/AM Music Radio (16%, 7%), 8th: Spotify, etc. (16%, 5%), 9th: FM/AM Talk Radio (9%, 4%), 10th: Podcasts (6%, 1%).

Boomers Are Loyal to Legacy Traditional Media, with higher usage of AM/FM radio, cable TV, and over-the-air TV. These channels remain vital for reaching this demographic. But even this generation adopted connected TV/OTT and YouTube viewing, albeit with lower percentages of heavy daily use compared to younger generations.

YouTube and OTT: The Power Couple of Modern Advertising

Imagine a world where you can reach your audience across all generations, capture their attention with diverse content, and target them with laser precision — all while maximizing your budget. This isn’t a fantasy; it’s the reality of combining YouTube and OTT (Connected TV) advertising.

Think of YouTube as the life of the party. It’s where everyone gathers, from Gen Z to Boomers, to watch everything from quick tutorials to in-depth documentaries. It’s accessible, engaging, and cost-effective, making it the perfect platform to build brand awareness and spark conversations.

Now, picture OTT as an elegant dinner party. It’s where viewers settle in for a premium, immersive experience with their favorite shows, movies, and live events. Whether it’s ad-supported or ad-free, OTT offers a captivating environment to showcase your message.

Together, YouTube and OTT are a power couple. They complement each other’s strengths, creating a comprehensive strategy that covers the entire spectrum of viewer behavior.

With YouTube, you can:

Reach a massive audience across all generations.

• Engage viewers across mobile devices and TV screens.  Nearly half of all impressions are delivered to TV sets these days, with high commercial view-through rates.

• Target with precision using Google Ads’ granular options.

• Maximize your budget with cost-effective impressions, including a pay-for-performance ad model.

With OTT, you can:

• Deliver a premium, TV-like experience to targeted households.

• Capture cord-cutters and cord-nevers.

• Enjoy high completion rates with non-skippable ads.

• Reach viewers in a lean-back, living room setting. Even lower-cost skippable ads often play all the way through in this setting).

By combining these two powerful platforms, you can:

• Cast a wider net and reach audiences across all generations and viewing habits, but in a highly targeted fashion based on household or individual user data.

• Ensure your message is seen in various contexts, from casual browsing to immersive viewing.

• Maximize your ROI with a combination of cost-effective reach and premium impact. NuVoodoo’s Private publisher inventory ensures that your dollars don’t get wasted by fraudulent bot traffic.

In the ever-evolving world of advertising, YouTube and OTT are the dynamic duo that can elevate your campaigns to new heights. Ready to unlock their power? Email tellmemore@nuvoodoo.com, and let us show you how our data-driven approach and experienced marketing campaign managers can help make your next ad campaign uber-efficient and successful.