BIA: Local OTT Rev To Hit $2.13B By 2024
BIA Advisory Services has expanded its forecasts to include local over-the-top (OTT) advertising. The firm presented at TVB Forward 2019 in New York City and estimates that 2019 will generate $857 million in OTT revenue, increasing nearly 148% 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, it’s an opportunity to extend the value of traditional over-the-air content. We’ve added OTT to our forecast to track this growing area and 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 analyze revenue opportunities.”
In early October, BIA will release its U.S. Local Advertising Forecast for 16 media, including OTT. BIA Advisory Services forecast is available for all 210 local television markets and is based on a proprietary forecasting methodology of the local advertising marketplace.