Report: Advertising on OTT Services Projected to Surge 40% This Year

Sep 21, 2018  •  Post A Comment

Advertising in over-the-top video is experiencing a steep growth spurt, with Vincent Letang of Magna projecting it will hit $2 billion in the U.S this year, MediaPost reports.

“While it’s a long way from the $63 billion he projects for U.S. linear TV, it’s a big number and is up 40% year over year,” the story reports, adding: “Why so much growth this year in OTT advertising? Simple. It’s all about achieving scale. Ad spend on OTT advertising is growing so much because OTT ad inventory is growing so much.”

MediaPost notes: “For the past couple of years, the biggest knock on OTT advertising has been a lack of scale, driven by the fact that the vast majority of OTT viewing is on ad-free programming — Netflix, Amazon Prime — or programming with ad loads well below linear TV, like Hulu’s.

“Clearly, we now have enough scale in OTT ad viewing that the sector can absorb meaningful amounts of ads with the explosion of services like Sling, DirecTV Now, Vudu’s Movies on Us, Crackle and the host of programmer-owned services like CBS All Access and Turner’s Boomerang.”

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