According to a new report from TDG Research, a research and advisory firm focused on the evolving broadband media ecosystem, revenue from OTT TV advertising –- that is, commercial advertising placed in full-length TV-quality programming delivered via broadband –- is expected to grow nearly four fold between 2015 and 2020. According to TDG’s The Future of OTT TV Advertising report, 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 forecasts OTT TV ad revenue to reach approximately $40 billion by 2020, just under half of projected $85 billion in total TV ad revenue during the same period.
Alan Wolk, TDG senior analyst and author of the new report
The value of legacy linear TV advertising in 2020 will be worth considerably more than today. New forms of advertising such as native and sponsored promotions will generate additional revenue and keep total TV ad revenue stable through 2020 (no growth in total revenue, but no decline, even as dollars are shifted to OTT TV).
