Over the past decade, one of the most significant changes to face the TV industry has been rapid fragmentation. This has fundamentally changed how TV is produced, watched, bought and sold. The very term “TV” has also evolved, now encompassing linear and digital (including all forms of OTT, which is in the midst of monumental growth). In fact, according to Magna Global, 29% of viewers now watch TV via OTT platforms, yet only 3% of TV ad spend is devoted to it.
Last year, advertisers began to actively experiment with OTT advertising, using test-and-learn strategies to reach audiences they never would have with linear alone (aka the cord-cutters and cord-nevers). Now, in 2020, we expect to see OTT scale as it becomes a regular and trusted part of the “video mix”—one that’s consistently measured and optimized for performance, right alongside traditional linear TV.
The most sophisticated brands will bring OTT and linear measurement together in a single platform, evaluating performance across all devices and TV buy elements (such as day, daypart, genre, creative—you name it), and then using those insights to consistently optimize. While linear and OTT work well on their own, they work even better together. When OTT is added to linear campaigns, the incremental reach it brings is tremendously impactful.
As 2020 continues, advertisers will create cross-platform strategies that “cover it all,” with a specific focus on what is driving the best outcomes. Many advertisers start with what they have uncovered from linear performance analysis and apply it to OTT, eventually adapting over time as they discover more insights from streaming channels.
Download our ebook to learn more about how OTT advertising is playing a critical role in the TV industry this year, in addition to other key trends shaping the TV landscape in 2020 and beyond.