OTT Advertisers Demand Enhanced Targeting & Measurement Before Moving Large Budgets

The OTT sector will become a $50 billion industry by 2020 (Over $20B in the US market). As measurement and targeting capabilities continue to advance, advertisers are allocating more budget to this medium which has an audience that continues to grow exponentially. However, until ad capabilities for OTT reach its “household-level” targeting promise, significant advertising growth won’t occur.

- There is optimism for OTT ad spend

  • 62% of the industry executives stated they will increase OTT ad spend

- OTT is pulling from all media budgets

  • Less than fourth report funding OTT from its linear TV ad budget while 33% indicated it will pull funding from its digital ad budget

- Publishers know it’s a way to reach Millennials

  • 75% surveyed said that increasing reach among Millennials and other cord cutters is the main benefit of advertising on OTT

- Most significant barriers to additional OTT advertising spend / revenue

  • Advertisers – cannot buy or validate specific audiences and cannot measure audience performance KPI
  • Publishers – segmenting inventory to advertising specs, providing cross-screen audience & performance measure, and achieving scale