$100M in Local OTT Campaigns Analyzed; OTT is Growing Seven Times Faster than Digital.
SAN FRANCISCO, March 17, 2020 /PRNewswire/ -- According to a new data report by ZypMedia, the programmatic advanced TV platform for local media companies connecting advertisers with their local audiences across all screens, local OTT advertising spend in 2019 increased 127 percent, compared to the year prior. This is seven times the digital growth rate in 2019, according to eMarketer.
Based on the data from nearly three billion ZypMedia impressions, the total number of campaigns increased by 58 percent, while the number of advertisers increased by 33 percent year-over-year.
"It is extremely encouraging that local advertisers are adopting OTT at a faster pace than national advertisers, ensuring that they will be able to reach the hyper-local audiences found across the percentage of the U.S. population that streams," said Aman Sareen, Co-Founder and CEO of ZypMedia. "The growth in local OTT advertising will only continue as consumers proceed to augment their viewing habits with ad-supported streaming content. Our data is an indicator of how rapidly the market is growing and changing."
When analyzing the devices by which viewers are consuming ads, streaming devices ranked number one, followed by smart TVs and gaming consoles. When it comes to the actual device, Roku has the largest market share among local advertisers with more than half of local OTT ads delivered on this device, followed by Amazon Fire TV.
"2020 is the year of ad-supported streaming," said Sareen. "We have seen many of the world's most popular media companies purchase AVOD services, which will ultimately enhance their content offerings and distribution. In addition, local advertisers will continue to diversify their OTT spend, leveraging improved technology and increased media efficiency that the market is bringing to bear."
Top Devices OTT Ads Are Being Served On
|1||Streaming Devices||Boxes or sticks that augment an existing TV set up with internet connectivity and an app interface.||77%|
|2||Smart TVs||A television set with built-in internet connectivity and an app interface.||19%|
|3||Gaming Consoles||Game consoles that augment an existing TV set up with internet connectivity and an app interface.||2%|
(2% of ads were delivered to other/unresolvable device types)
To view ZypMedia's full data report, click here.
ZypMedia analyzed more than $100 million in local OTT advertising spend from over 30,000 campaigns with nearly three billion impressions on TV screens from 2018-2019 in the U.S. Top device share percentages are based on where consumers are viewing ad-supported streaming content, not based on advertiser targeting
ZypMedia (zypmedia.com) is a programmatic advanced TV platform that connects advertisers with their local audiences across all screens with a reach of over 90 million households and 620 million unique devices. The ZypMedia demand-side platform was purpose-built to address the unique requirements and complexities of local advertising with an emphasis on premium OTT content and applications. ZypMedia is a privately held, venture-backed technology company headquartered in San Francisco whose customers include Sinclair Broadcast Group, Nexstar Media Group, iHeartMedia, CBS Local, and Univision.