Spending rising sharply for OTT ad Revenues

Roshan Dwivedi Published on : 25 May 2017

The traditional TV market is being outgrown by new advertising-supported OTT TV digital platforms. According to a new survey conducted by Tru Optik, the audience measurement and data management company focused on OTT, 62% of media-buying executives believe OTT ad spending will increase, 38% feel it will stay the same. Advertising revenue through premium TV network/cable programming on OTT TV platforms via services like Hulu, Sling TV, CBS All Access, NBC’s Seeso amounted to $3.3 billion in 2016. The estimated revenue, 4.4%, was up by 30% compared with that of last year’s.

One-third of media executives believe new OTT ad money will be derived from digital advertising budgets, 23% from traditional, linear TV ad budgets, 21% from a pooled advertising/market budgets, 12% from a “testing/experimenting” budget and 11% from social media budget. Increasing reach among millennials and cord-cutters is the biggest advantage of OTT/connected TV, according to the survey wherein 50% executives feel that precision advertising/targeting is the main benefit for OTT. Most TV viewing for OTT apps/platforms is derived from connected TV, at 78%, with 22% of the OTT content going to desktop/mobile. Read More

Written by: Roshan Dwivedi

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