Skip to main content

OTT Television Ad Revenue will Reach $40 Billion

Over-the-Top (OTT) content distribution has been a disruptive force in an otherwise status-quo video entertainment market. As the viewership of traditional linear broadcast TV continues a slow decline in mature markets, advertisers are seeking other ways to reach consumers.

Revenue from OTT television program advertising -- that is, commercial advertising placed in full-length TV-quality programming delivered via broadband -- is expected to grow nearly four fold between 2015 and 2020, according to the latest market study by TDG.

Their worldwide market study produced what represents the first publicly-available advertising forecast associated exclusively with the delivery of OTT TV content.

According to the TDG assessment, the average ad load for a 30-minute legacy linear program will decline by 38 percent between 2014 and 2020, from approximately eight minutes to around five minutes.

During the same forecast period, average OTT TV ad loads will increase 63 percent, from 3.2 minutes to 5.1 minutes, bringing OTT TV ad loads in line with that of legacy linear TV.


TDG believes that this shift in advertising load is not all bad for content networks.

"The value of legacy linear TV advertising in 2020 will be worth considerably more than today," said Alan Wolk, senior analyst at TDG.

New forms of advertising such as native and sponsored promotions could generate additional revenue and keep total TV ad revenue somewhat stable through 2020 -- producing zero growth in total revenue, but no decline, even as more ad budgets are shifted to OTT TV.

By 2020, OTT TV ad revenue will be approximately $40 billion, just under half of the 2020 projected $85 billion in total TV ad revenue. What's not clear, however, is if marketers will continue to invest in any form of advertising, when there are more effective means of reaching potential customers.

The TDG market study included an in-depth examination of the trends driving and inhibiting the shift from legacy to OTT TV advertising, as well as detailed forecasts for total TV ad revenue.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C