Tracking the tremendous growth in over-the-top (OTT), I’m pleased to announce that BIA is expanding our local media forecast to include local OTT advertising. At TVB Forward 2019, we’ll present our initial estimates, which show 2019 will generate $857 million in OTT revenue and increase an astounding 148 percent to $2.13 billion by 2024.
As consumers shift their viewing habits, OTT presents an opportunity for broadcasters to extend the value of traditional over-the-air content. Simultaneously, the industry has reached a stage where there are several existing and emerging OTT players that have a high growth potential. By partnering with them, broadcasters can drive new revenue by delivering their valuable content and diverse audiences.
I believe we’re at the tip of the opportunity and we’re working closely with OTT firms to analyze opportunities. Our goal is to scope the revenue possibilities for our broadcast clients.
What are we covering in our local OTT forecast and how do we define it? We define OTT advertising as locally targeted advertising included on streaming video that is delivered to TV sets via Internet connections.
Our OTT ad forecast focuses on the local activation of OTT video impressions on Connected TVs. This ad inventory can be both competitive and complementary, in the case of TV groups, for local linear TV ad budgets including local TV and local cable. It’s fascinating.
We’ll be releasing our full OTT forecast in October for all local TV markets in our BIA ADVantage platform. If you’re a client, stay tuned for details on this major forecast release. If you’re not a client, contact us for details on how to get our local media forecast covering top media like OTT.