We’ve reached a tipping point with the rise in cord-cutting and growing demand for premium video content. We’re approaching full-market scale in the U.S., with nearly 200 million OTT viewers in 2018, which equates to roughly the same number of households that subscribe to OTT services as they do pay TV.
Clearly, there’s strong appetite for OTT advertising as advertisers know that they must follow their audiences. According to TDG Research, ad spend in OTT is projected to hit $40 billion by 2020, which is nearly half of the $85 billion in forecasted total TV ad revenue.
But the increasingly fragmented viewership and time-shifted audiences bring greater challenges for advertisers to reach the right viewers. Marketers need to be armed with richer data to gain a better understanding of the OTT marketplace for media planning.