NEW YORK — Local “over the top” advertising is rapidly growing. How big is the growth forecast? TVB Forward got the answer at a morning presentation from BIA Advisory Services CEO Tom Buono.
A huge increase is anticipated between BIA’s local OTT ad dollar estimates for 2019 and those projected for 2024.
Specifically, Buono estimates that 2019 will generate $857 million in OTT revenue, increasing nearly 148 percent to $2.13 billion by 2024.
“OTT offers a considerable opportunity for broadcasters to grow revenue,” Buono said. “As consumers shift their viewing habits, it’s an opportunity to extend the value of traditional over-the-air content. We’ve added OTT to our forecast to track this growing area and scope the revenue opportunity.”
BIA’s OTT ad forecast focuses on the local activation of OTT video impressions on Connected TVs. This ad inventory can be both competitive and complementary, in the case of TV groups, for local linear TV ad budgets including local TV and local cable.
BIA defines OTT advertising as locally targeted advertising included on streaming video that is delivered to TV sets via Internet connections.
BIA SVP and Chief Economist Dr. Mark Fratrik added, “The industry has reached a stage where there are several existing and emerging OTT players that have a high growth potential. By partnering with them, broadcasters can drive new revenue by delivering their valuable content and diverse audiences. I believe we’re at the tip of the opportunity and we’re working closely with OTT firms to analyze revenue opportunities.”