The current times have dictated numerous sources of worry for many local broadcasting entities, as individuals using alternate forms of streaming and internet-based platforms for entertainment have moved into the forefront. A new report from BIA Advisory Services reveals that the over-the-top (OTT) format is one of the fastest growing channels for users obtaining local media, growing at an astounding 43% from 2020 to 2022.
The Vevio-sponsored report was titled OTT – The Rising Star in Local Ad Spending: Regional and Business Vertical Trends, and clearly showed that BIA poses a current forecast of just over $2 billion in OTT advertising in 2022, which is nearly 100% growth from two years ago. This is enough proof, along with positive momentum, to render the segment-ruling OTT as the fastest-growing local advertising platform. With its official definition as “any streaming service that delivers long-form premium content over the internet”, this variation of programming has grown massively from a fill-in audience to a fully-equipped and grown marketing channel.
The Phenomenon of such Rapid Growth:
The ability to optimize and very clearly measure the performance of campaigns, along with defining and activating audience segments with a large amount of gathered data, has fueled much of this growth. We have long taken note at Farfetched Studios with just how broadcasters have been able to use very honed-in localism as a massive selling point. While that used to rival and lure diehard sentiment away from OTT formats, it is clear how intensely and deeply things have changed.
Regardless of many negative trending indicators that can be as obvious as the smart TV label itself, traditional over-the-air (OTA) spending is expected to see a 30.3% rise this year, along with 18.3% for digital TV. As viewers continue to gravitate heavily toward the OTT format, there are new abilities provided frequently to establish very personalized ad campaigns, along with close monitoring of just who they are reaching. “Don’t forget those who simply like to listen” services, such as Spotify, which are synonymous with music streaming, allow users to access playlists that are growing by the day.
Who are Some of the Heavy Hitters in This Category?
The predominant streaming sources where users are finding content’s major players have always been Netflix, Amazon Prime, Disney +, and Hulu, but the selection list of these services is also growing by leaps and bounds. Just as many homeowners, renters, and consumers from all walks of life would need, the top spending business category in local OTT advertising is the general services category. Here, legal, HVAC, utilities, and home improvement entities among others are eager to reach consumers that are taking advantage of this modern and now everyday-practical content medium.
Financial planning and insurance providers, the automotive industry, and restaurants top the runner-up category as they look to maximize their potential on OTT and get directly in front of its loyal users. As OTT continues to prove itself as a savvy choice for brands, agencies, and advertisers looking to boost sales and market share, there will be many opportunities to resoundingly reach the many who have cut the cable cord.
Startups such as Sling TV and DirecTV Now have been very successful at providing the “channels of old” with the “delivery of now” and have also brought their own breed of inviting and viewer-rich platforms to the table as viable contenders for ad spend. As it becomes more imperative every day to reach out to the right audience at the perfect instant, our many varieties of “ad fuel” can rise to the occasion for viewers binge-watching and bursting at the seams with a need for YOUR product or service!