OTT ad spend reaches $ 1.3 billion as budgets shift to streaming content

Cable cutting has grown significantly since 2015. Currently, only 56% of Americans report watching cable or satellite TV, down from 76% in 2015. However, 78% of consumers living in the states Uniti has access to a video service via subscription. Despite this big change, OTT spend, aka ad spend on streaming services, only accounts for 3% of digital ad spend because space is dominated by ad-free or light subscription services. This increase in spending, while still a fraction of overall spending, reflects a growing shift towards ad-supported streaming.

The streaming industry has seen growth over the past year. While some platforms like Netflix and Disney + don’t show ads, many other platforms have advertising options. As competition for eyeballs increases, streaming platforms have an incentive to keep prices down. Advertising is a great way to do this, as the report found that most Americans don’t want to spend more than $ 30 on a streaming service. Hulu was the dominant ad-supported service, but the field has been littered with other options ever since.

According to MediaRadar, 5,530 advertisers placed ads on the top 5 streaming platforms in 2021. In total, spending on these platforms reached nearly $ 438 million in the fourth quarter, with about half a million ads placed in the second half of 2021 the fourth and third quarters saw a 22% increase in ad spend. OCT

Retail was the top spending category in the fourth quarter of 2021, accounting for 16% of the market and growing 57% from the third quarter. Retail advertising was the most common on Discovery +, accounting for 22% of all ads on the platform.

Insurance and credit services had the second-largest share, accounting for 14% of advertising in the fourth quarter. Advertising from companies in this industry was most common on HBO Max, accounting for 19% of all ads. In the insurance sector, it was the media, which grew by 46% compared to the third quarter. Home ads promoting programming within the same parent company accounted for 16% of OTT ads in the fourth quarter.