Advertisers Spent 127% More on OTT Advertising in 2019





Woman watching TV

Woman watching TV2019 showed a major shift in viewing habits, with more viewers dropping pay TV and making the switch to digital watching. Trends in TV viewing can be observed through the advertising industry, showing where advertisers are choosing to invest.

A new report from ZypMedia shows that the impact of the digital shift has never been taken more seriously by advertisers than it is right now. ZypMedia, a platform connecting media advertisers to their audiences, looked at over 20,000 ad campaigns from 2019, compared to those from 2018, to show how the digital shift has changed the industry.

What the results show is that advertisers are using OTT advertising to better reach their local audience. As advertisers have chosen to invest more in OTT advertising year over year, it shows that the strategy is paying off. In 2019, advertisers spent 127% more on OTT advertising when compared to 2018.

“It is extremely encouraging that local advertisers are adopting OTT at a faster pace than national advertisers, ensuring that they will be able to reach the hyper-local audiences found across the streaming U.S. population,” said Aman Sareen, Co-Founder and CEO of ZypMedia. “The growth in local OTT advertising will only continue as consumers proceed to augment their viewing habits with ad-supported streaming content. Our data is an indicator of how rapidly the market is growing and changing.”

OTT technology has opened up the number of ways viewers can find, access, and watch long-form video content that was traditionally only available through a cable box. When analyzing the devices by which viewers are now using for consuming ads, streaming devices ranked number one, followed by smart TVs and gaming consoles.

“2020 is the year of ad-supported streaming,” said Sareen. ”We have seen many of the world’s most popular media companies purchase AVOD services, which will ultimately enhance their content offerings and distribution. In addition, local advertisers will continue to diversify their OTT spend, leveraging improved technology and increased media efficiency that the market is bringing to bear.”

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