Although media content and advertising executives value OTT and traditional pay TV providers differently, both say data-based audiences will grow when it comes to a return on ad investment.
In a survey from SpotX, a video advertising serving platform, commissioned by Kagan, 54% of respondents expected to see an 11% to 20% increase on advertising spend by moving to audience based buying/selling -- 32% expected a a 6% to 10% gain.
Nearly 70% of content owners place different values on pay TV and OTT audiences, while only 44% of advertising executives value them differently.
In two years, Kagan forecasts the percentage of linear TV advertising coming from programmatic-traded deals will grow to 10.7% -- hitting $9.4 billion. That market share was 0.3% in 2015.
Total U.S. digital video advertising is projected to rise to $17.1 billion by 2021 from $11.9 billion in 2017.
Research was conducted from telephone interviews with 40 of the leading pay TV providers, pure-play OTT providers, content owners and advertisers in the U.S. The survey was conducted in December 2017.