OTT, Pay TV Valued Differently By Video And Ad Execs

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.



1 comment about "OTT, Pay TV Valued Differently By Video And Ad Execs".
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  1. Ed Papazian from Media Dynamics Inc, August 20, 2018 at 12:35 p.m.

    Since true "programmatic" TV time buying and selling is, at present a big zero in terms of ad spend, that Kagan forecast needs to be taken with several large grains of salt. True "programmatic" would require full-or almost full participation by all of the likely sellers  using common metrics and without humans involved in actually making the buys. This simply does not exist in national TV and even in spot--or local--- TV many stations in many markets do not participate while the sellers and buyers make the real decisions, not the computers. In other words, using the term "programmatic" for TV time buying is merely a promotional ploy for its advocates.  What actually happens---when it happens---bears little semblance to what is done in digital media.

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