OTT Devices Become Ad Magnets

Video streamers, gaming consoles and other TV-connected OTT devices are becoming havens for ad-supported premium programming.

For the second consecutive quarter, the category saw the biggest surge of growth for ad views, according to FreeWheel’s Video Monetization Report for Q2 2017.

OTT devices saw a 32% increase in ad viewing in the period, well ahead of growth on smartphones and tablets, while ad viewing on PCs/desktops continued to drop.

It represents a big climb for OTT, which held 29% of the composition share in Q2 2017, compared to desktops (27%), smartphones (16%) and tablets (8%).

A major bright spot was set-top box (and non-OTT) VOD, which saw ad growth surge 34% from a year earlier.

Overall, premium ad views climbed 17% year-over-year, driven by double-digit growth of full-episode and live stream monetization, said FreeWheel, the ad-tech company acquired by Comcast in 2014.

By content type for online video, live streams 40% year-over-year, and was dominated by sports (73%), followed by news (17%) and entertainment (10%).