Over the top video advertising now makes up for 26% off video ad spend, an increase from 8% a year ago. This is according to data from SpotX, a video ad serving platform. According to the company OTT ad spend will increase to about 30% by the end of 2017.
“This incredible growth of OTT ad spend across our platform demonstrates a shift in thinking on the part of media buyers, as advances in technology have now made it possible for buyers to follow viewers (wherever they may be) while enjoying the benefits of targeting and analytics that they’ve come to expect elsewhere,” Kelly McMahon, VP of global demand operations at SpotX, told Digital News Daily. “We believe OTT ad spend will continue to build even more momentum throughout 2018.”
While TV is still in the lead when it comes to consumer reach, the increasing popularity of streaming video is leading to more and more consumers switching from TV to invest in straying bundled for online content as well as other special video services. Brands and advertisers have taken note of this shift and are in turn tweaking their marketing strategy in order to incorporate digital advertising. Other key factor that has resulted in the shift to OTT ad spending is the improved and accurate targeting capabilities it provides. Aside from being able to target niche audiences, brands and advertisers can try and track their consumers and learn what they do while online.
“The key to buying across video channels, including OTT audiences, is taking a holistic view of the data that can be made available; specifically: linking consumption behavior, or what people watch, to digital activities, or what they do online, along with ad exposure data,” says Jay Prasad, chief strategy officer for the demand-side platform (DSP) VideoAmp.