Report: Global OTT Video Ad Spend Jumps from 8 to 26%

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DENVER – The portion of overall ad budgets spent with over-the-top (OTT) inventory owners increased from 8 percent in October 2016 to 26 percent of total spent in October 2017, reports SpotX, a video ad serving platform. 

The company says this equates to nearly 18 times growth in advertiser dollars spent on OTT inventory. And that number could hit 30 percent by the end of 2017 with holiday ad spend added, pointing to growth that shows budgets adjusting in favor of OTT streams as consumers increasingly view content across devices.

The OTT video category includes broadcast-quality inventory from TV networks, multichannel video programming distributors (MVPDs) and other live, linear, and video-on-demand (VOD) streaming services delivered via connected TV devices as well as desktop and mobile screens.

Kelly McMahon, a vice president at SpotX, says by making addressable OTT inventory available to buyers through their platforms, demand-side ad platforms (DSPs) “are placing themselves ahead of the curve in terms of innovation and enabling advertisers to reach audiences across multiple screens at scale.”

McMahon adds, “We believe OTT ad spend will continue to build even more momentum throughout 2018.”

Of the 65-plus DSPs buying through SpotX’s platform, Adobe Advertising Cloud, dataxu, The Trade Desk, VideoAmp, and ZypMedia are leading growth as the top platforms transacting on OTT inventory. Since January 2017, their collective daily spend on the category has grown by more than 675 percent.

Some analysts say streaming live TV is mainstream enough that it’s opening the door for advertisers to capture viewers who aren’t subscribing to traditional cable TV.

Alex Weprin, a reporter with MediaPost News, says while television is still king when it comes to advertising reach, streaming video offerings are leading to more cord cutting in favor of streaming bundles of video and content, as well as niche video services. He adds that media buyers and advertisers are, in turn, responding to that shift in consumption by reevaluating where their money is spent.