CHANTILLY, Va.—BIA Advisory Services has announced that it is adding local OTT advertising to its Local U.S. Ad Forecasts, and in its initial report highlighted that OTT revenue is and is projected to grow a strong clip over the next few years.
BIA defines OTT advertising as locally targeted advertising included on streaming video that is delivered to TV sets via internet connections. OTT ad forecasts from BIA focus on the local activation of OTT video impressions on connected TVs. BIA believes that OTT ad inventory can be both complementary and competitive for local linear TV ad budgets.
After generating $598 million in OTT revenue in 2018, BIA estimates that number is set to grow to $857 million in 2019 and eventually to $2.13 billion in 2024, which would represent a 148% growth from 2019.
“The industry has reached a stage where there are several existing and emerging OTT players that have a high growth potential,” said Mark Fratrik, chief economist and senior vice president at BIA Advisory Services. “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.”
BIA will release its complete U.S. Local Advertising Forecast, covering 16 markets including OTT, in early October. The report is available for all 210 local TV markets and is based on a proprietary forecasting methodology of the local advertising marketplace.
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