OTT Ad Revs, Spending Up Sharply

New advertising-supported OTT TV digital platforms are growing a big piece of the traditional TV market -- with media executive expecting to spend much more.

A new survey says 62% of media-buying executives believe OTT ad spending will increase, and 38% believe it will stay the same, according to Tru Optik, the audience measurement and data management company focused on OTT.

Industry estimates are that advertising revenue going to premium TV network/cable programming on OTT TV platforms -- through services like Hulu, Sling TV, CBS All Access, NBC’s Seeso -- totaled $3.3 billion in 2016, representing 4.4% of TV revenue, up roughly 30% versus the year before.

About one-third of media executives believe new OTT ad money will come 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.

Three-quarters of digital publishers believe that increasing reach among Millennials and cord-cutters is a main benefit of OTT/connected TV, according to the survey; with 50% of executives saying precision advertising/targeting is the main benefit for OTT.

Most TV viewing for OTT apps/platforms is coming via connected TV, at 78%, with 22% of the OTT content going to desktop/mobile.



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