OTT TV Advertising to Hit $40B by 2020

Advertising on over-the-top TV programming will grow four-fold to $40 billion by 2020, according to a new report.

According to the Diffusion Group, as ad revenue for OTT grows, TV ad revenues will remain essentially flat at about $85 billion.

The Diffusion Group says between now and 2020, the ad load for TV programming delivered via broadband will increase 63% to 5.1 minutes per half hour from 3.2 minutes. At the same time the ad load in linear TV programming will fall 38% by 2020, putting them at similar levels.

Linear TV network will offset the drop in ad load with increase sales of native advertising and sponsorships.

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.