IAB: Higher Ad Growth For OTT Platforms, 'Walled Garden' Concerns

In the wake of continuing strong growth OTT projections, the Interactive Advertising Bureau has released an overview of the space in a report called the OTT Streaming Video Playbook for Advanced Marketers.

The report from the IAB, the media and marketing trade group, which focuses on the digital economy, cites 37% growth in advertising spending on OTT platforms in 2019 to almost $7 billion, according to an eMarketer October 2019 report.

An August IAB study showed that 76% of those who regularly stream watched ad-supported OTT,  with 49% of those streamers watching ad-supported OTT streaming video the most.

Looking more specifically at connected TV, those ad views now account for nearly half (45%) of all digital video ad impressions in the second quarter of 2019 -- while there has been relatively flat demand on mobile and decline in PC/desktop video impressions.

Sourcing data here comes from the second-quarter reports of Extreme Reach, Innovid, and FreeWheel.  

But the IAB does have concerns about the future of streaming when it comes to new services that may be looking to restrict TV program content and/or data for potential marketers. For many, this could come from more advertiser-supported platforms, such as the forthcoming HBO Max and NBCU’s Peacock.

The IAB says: "There is risk that device platforms which hold the most robust data for targeting and measurement could become more like 'walled gardens' making it difficult for advertisers to freely execute campaigns and measure results across the OTT ecosystem."

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