BIA Examines Growth in Local Over-the-Top Advertising at TVB Forward 2022 Conference; Revenue to Hit $2.8B by 2024
BIA Advisory Services' U.S. Local Advertising Forecast reveals that local over-the-top (OTT) advertising is one of the fastest growing local media channels. Presenting at TVB Forward 2022, the firm showcased that year-over-year OTT ad revenue growth has been and will continue to be primarily in the double digits since 2019, and is forecasted that it will increase by 57% this year to $2.0 billion, reaching $3.4 billion by 2026.
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"When you compare TV over-the-air (OTA) to OTT, obviously TV OTA is the juggernaut. However, the growth in OTT demonstrates that it is delivering a proven opportunity for broadcasters to grow revenue," said Rick Ducey, Managing Director, BIA Advisory Services. "Consumers continue to shift, and are sticking with, viewing habits supported by OTT. For broadcasters taking notice, it offers them an opportunity to extend the value of their traditional over-the-air content and deliver it in a manner consumers require."
Other top takeaways in the OTT forecast that explain the growth in this channel include:
In this busy political year, advertisers are using OTT at greater rates. BIA expects to see an extra bump in OTT spending particularly in even years as advertisers decide to mix more of this channel into their cross-platform approach to advertising.
Other local verticals startng to use OTT at noticeable levels include:
Nicole Ovadia, VP Forecasting and Analysis at BIA Advisory Services, expanded on the firms' OTT coverage saying, "As OTT comes of age, we expect it to rapidly seek additional investments to reach new consumers that are harder to hit by linear TV alone. It will be fascinating to watch the growth trend lines. To provide insights into OTT ad spending, we are slicing and dicing our forecast estimates to examine growth and expansion by verticals, regions in the US, by markets and more."
At TVB Forward, Ovadia and Ducey participated in a BIA-lead panel Monetizing Local OTT and Apps. As part of the session, BIA offered a complimentary report examining regional OTT ad spend that is available for download here.
About BIA's U.S. Local Advertising Forecast and OTT Forecast
BIA's U.S. Local Advertising Report covers 16 ad channels (i.e., TV OTA and Digital, Radio OTA and Digital, PC/Laptop, Mobile, OTT and other) and tracks expected ad revenue across 96 verticals. The forecast can be accessed in BIA ADVantage, which is available for all 210 local TV markets. Subscription details available here. To purchase the OTT forecast for a local market, details available here.
Definitions: 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.
About BIA Advisory Services
BIA Advisory Services is the leading authority for data-centered insights, analysis, strategic consulting, and valuation services for the local media and advertising industry. Since 1983, BIA has been a valuable resource for traditional and digital media companies, brands and agencies, the financial and legal community serving media and telecom, as well as the FCC and other government agencies. Today, we offer comprehensive local market advertising intelligence that provides grounded, reliable advertising estimates across media channels and business verticals. We also deliver comprehensive data on the broadcasting and publishing industries. Our leading solutions include BIA ADVantage™ and MEDIA Access Pro™. Our goal is to provide the best service to help our clients discover their path to the best opportunities. Learn more about our offerings, podcast, newsletter and more at http://www.bia.com.