Revenue from OTT TV advertising – commercial advertising placed in full-length TV-quality programming delivered via broadband – is expected to grow nearly fourfold between 2015 and 2020, according to a new report from TDG.
The average ad load for a 30-minute legacy linear program will decline by 38% between 2014 and 2020, from approximately eight minutes to around five minutes.
During the same period, average OTT TV ad loads will increase 63%, from 3.2 minutes to 5.1 minutes —bringing OTT TV ad loads in line with that of legacy linear TV.
TDG senior analyst Alan Wolk said the value of legacy linear TV advertising in 2020 will be worth considerably more than today.
Wolk said that new forms of advertising such as native and sponsored promotions will generate additional revenue and keep total TV ad revenue stable through 2020.
Furthermore, findings suggest that by 2020, OTT TV ad revenue will be approximately $40 billion, just under half of 2020’s projected $85 billion in total TV ad revenue.