Local over-the-top (OTT) TV advertising is estimated to sharply climb to $2 billion in revenues by the end of this year -- up from $1 billion in 2020, according to a new study.
The research comes from BIA Advisory Services, a local media consultancy, and is sponsored by Vevo, the digital music video network.
The authors say the average compounded annual growth rate (CAGR) over the past two years for OTT was 43% -- which makes it the fastest-growing local media.
After local TV OTT comes local digital radio, with an annual growth rate of 24.3% over the last two years, followed by local mobile at 20.8%, local digital magazines at 17% and local PC/laptop advertising at 16.6%
The top advertising local OTT category for 2022 is projected to be general services, at $337.2 million. This includes legal/law firm businesses, as well as plumbers, HVAC contractors, utilities, and funeral home operators, to name a few.
The second-biggest local OTT category is automotive, at $273.2 million, followed by restaurants ($203.4 million); health ($202.8 million); and finance/insurance ($182.8 million).
Looking at six U.S. regions, the biggest growth was in Mid-Atlantic markets, with 53% CAGR, and the lowest was the Pacific Southwest, 39% Other regions were as follows: Northeast (47%), Southeast (40%); Midwest (42%) and Pacific Northwest (42%).