Local over-the-top advertising revenue is expected to be $857 million in 2019, up 43%, according to a new estimate from BIA Advisory Services.
“OTT offers a considerable opportunity for broadcasters to grow revenue,” said Tom Buono, founder and CEO of BIA Advisory Services. “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 defines OTT advertising as locally targeted advertising included on streaming video that is delivered to TV sets via internet connections. 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 with local TV and cable inventory.
“The industry has reached a stage where there are several existing and emerging OTT players that have a high growth potential,” said Mark Fratnik, chief economist and senior VP at BIA. “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.”
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Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.