OTT to account for half of TV ad revenue by 2020

Over-the-top TV ad revenue will account for just under half of total TV ad revenue by 2020, according to The Diffusion Group (TDG). 

The research claims that by 2020, OTT TV ad revenue – commercial advertising placed in full-length TV-quality programming delivered via broadband – will represent roughly US$40 billion (€37 billion) of the US$85 billion in total TV ad revenue, after growing fourfold between 2015 and 2020.

TDG tips the average ad load for a 30-minute linear TV programmes to 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,” added TDG.