BIA: Local US OTT ad revenue to hit $2.1bn by 2024
September 27, 2019
BIA Advisory Services has expanded its US advertising forecasts to include local OTT advertising. Presenting at TVB Forward 2019, the firm estimates that 2019 will generate $857 million (€783.6bn) in OTT revenue, increasing nearly 148 per cent to $2.13 billion by 2024.
“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, OTT gives broadcasters an opportunity to extend the value of their traditional over-the-air content. We’ve added OTT to our forecast to 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.
Mark Fratrik, Chief Economist and SVP at BIA Advisory Services, expanded on the firms’ coverage of OTT saying, “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 analyse revenue opportunities.”