Advertisers love television. However, it’s experiencing tough love in the form of declining pay subscriptions, consumers spending more time with Over-The-Top (OTT) streaming platforms and services delivered over broadband Internet. Local TV groups still deliver reach, but many are adding OTT to their sales arsenal to provide advertisers access to digital audiences and data-driven buying and optimizations.
BIA estimates that $857 million was spent in OTT in 2019 targeting local TV audiences. BIA expects this total to rise to over $2 billion by 2024 or about 10 percent of what local TV generates in ad revenue.
We’ve organized our thinking about OTT in the context of three major growth trends:
- Audience fragmentation
- AVOD video
- Cross-platform video
As more viewers, and viewing, migrates from linear TV (OTA and MVPD), advertisers are becoming harder pressed to get the impressions they need for their video campaigns in premium content environments. There is a growing supply of Ad-supported Video on Demand (AVOD) networks, platforms and integrators offering access to local audience video impressions. Ad buyers are finding the combination of targetable impressions in premium video across platforms (TV, mobile, computer) to be just what they’re looking for to complement the reach they continue to get from OTA local TV.
Hear more data and insights on OTT and local TV opportunities in the podcast. Listen now.