The Future of OTT TV Advertising, 2014-2020

The delivery of OTT TV — that is, long-form, professional-produced video content delivered over the Internet — is making significant inroads, with more than half of adult broadband users now engaging a fee-based OTT TV service on their home television. Despite this trend, the networks, advertisers, and MVPDs involved cannot agree on a single system of measurement, thus preventing OTT TV viewing from being fully monetized.

Not surprisingly, OTT TV advertising is a bit of the hybrid. Though ads appear on the same shows with more or less the same advertisers as traditional legacy TV, when buying and selling advertising OTT TV programming is regarded as ‘digital video.’ This has left both networks and advertisers confused as to the true value of OTT TV programming and its relevance in the advertising landscape.

This report offers a detailed analysis of the OTT TV advertising ecosystem, identifying the forces that will determine its future. As well, the report offers extensive forecasts for both legacy and OTT TV ad revenue through 2020. It addresses questions of significance to all those concerned with properly monetizing OTT TV content, and makes surprising predictions regarding issues critical to its future, including:

  • What counts as ‘OTT TV’ and how will OTT TV viewing be measured and valued?
  • What changes are in store for TV advertising during the next five years?
  • What role will programmatic play in buying and selling OTT TV advertising?
  • How much ad revenue will come from OTT TV over the next five years? How will this compare to legacy TV advertising?

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