More and more millennials in the U.S. are becoming cord cutters. In 2017, eMarketer reported a 3.2% surge in the growth of OTT viewers compared to 2016. By the end of 2017, there were already 193.3 million OTT video service users in the U.S. This number is projected to consistently rise in the next few years to more than 209.5 million OTT users by 2021. With OTT advertising spend predicted to hit $20 billion over the next three years, small and mid-size local businesses are bound to shift their ad spend towards digital delivery.
The primary challenge keeping local advertisers from adopting OTT advertising is that there hasn’t been a ton of data available to them to justify an OTT marketing campaign or ad spend.
At ZypMedia, we believe that local advertisers deserve the same OTT opportunities as national advertisers.
We’re happy to announce a partnership with the only audience measurement and data-management platform that works across the entire OTT ecosystem, Tru Optik, for launching a new local ad marketplace for OTT and connected TV services.
The deal will mark a significant push to bring two of the fastest growing trends together -- OTT and connected TV advertising. But these trends are still new to local advertisers, who do not have the same access to OTT marketplaces and customer data that large national advertisers do.
“Our integration with Tru Optik will allow us to power the same data-driven targeting across CTV and OTT that many of the largest media companies in the U.S. already rely on us for across digital, social, and omnichannel local marketing. We are arming local advertisers with the same capabilities as large national advertisers, but with an emphasis on catering to the intricacies of each local community and their target consumers.”
Ramandeep Ahuja, Co-Founder and CTO, ZypMedia
This partnership will change how local brands consider advertising on OTT platforms by providing local advertisers (and anyone who supports them) with the ability to use ZypMedia’s platform to create targeted campaigns across all CTV screens using demographic data.
BIA/Kelsey forecasted that digital advertising in local markets, including mobile, would grow from $44.2 billion in 2016 to $50.2 billion in 2017 -- a 13.5% increase. Meanwhile, the use of traditional media for local ads was expected to drop by 2.4% from $101.1 billion in 2016 to $98.6 billion in 2017. Local ad revenue from all platforms was expected to rise to $148.8 billion in 2017.
The shifting consumer trend towards OTT services and CTV is encouraging local advertisers to start leveraging audiences in this marketplace.
“With the amount of time spent watching ad-supported television shifting more and more towards OTT and CTV, it was inevitable for local advertisers to start focusing on expanding into this landscape. Partnering with ZypMedia, one of the fastest growing platforms, and Sinclair, the largest owner of local TV stations in the U.S., empowers local advertisers with the ability to buy targeted, measurable, brand-safe premium video inventory – a huge win on all sides.”
Andre Swanston, CEO, Tru Optik
…………………….......................We are incredibly excited to partner with Tru Optik and we look forward to working together to create new services that will benefit local advertisers. Stay tuned to discover how this partnership helps our users gain access to OTT marketplaces and create targeted campaigns using demographic data.