OTT advertising trends are constantly changing and evolving. OTT, or “Over-the-top” media services like Netflix, provide an opportunity for advertisers to reach a user that is not on TV, radio, or print.
The OTT market is estimated to be worth $70 billion by 2020 in the US alone and will continue to grow as more people adopt OTT services. Learn about what OTP ads will look like in 2022!
The new trend in the advertising market is low-cost video distribution methods. A decade ago, TV channels dominated the advertising market worldwide.
Currently, these channels are facing stiff competition from streaming services that bring interactive features. These services enable communication with your target audience and help you attract a large group of fans.
Significance of OTT Advertising:
You can use low-cost video ads as a means to promote your products to your customers and boost sales. It is also important to keep up with technological progress and constantly improve your marketing strategy to outpace the competition. This report will discuss some considerations regarding OTT advertising trends 2022.
The digital revolution continues to sweep through the world with changing consumer habits, innovations in content and technology, and rising expectations for programs and services. These trends offer new opportunities for the interactive video to capture consumer attention and open up profitable advertising revenues. Research and Markets have announced the addition of the “OTT Advertising Trends 2022” report to their offering.
OTT (Over-The-Top) advertising allows a one-to-one personal advertising experience, driven by big data analysis, behavioral targeting, and data analysis abilities that are at present impossible in normal linear TV or radio advertising.
The growth of over-the-top (OTT) video services has created the largest incremental advertising and content monetization opportunity since introducing the iPhone. With 100M+ subscribers, Netflix alone now represents 88% of U.S. OTT revenue, according to eMarketer.
Recent estimates from the Goldman project peak US TV ad revenue in 2021 at $36B, with nearly 50% of that being captured by streaming platforms like Amazon, Hulu, Crackle, WWE Network & others (excluding YouTube). The explosion of new content by these OTT providers creates a medium for exponential video ad spend growth.
The key drivers of over-the-top (OTT) advertising growth are the increasing online video consumption, increase in connected devices, availability of advanced video technologies, and improved content creation methods.
The growing trend of outsourcing content development has created an increase in the number of people who are okay with watching advertisements on their TV screens or even accept it as a part of their everyday life. This is one of the major reasons why advertisers and other big players in the broadcasting field have started to explore new dimensions that lead to a non-traditional form of advertising.
The recent move towards OTT channels means that there will be a lot of change that will take place in advertising not only in the local area but also globally.
OTT’s emergence as a mainstream platform has opened up tremendous opportunities for both advertisers and publishers.
Mobile video advertising currently has a CAGR of 109% in 2019 and is expected to generate $42.13 billion by 2022.
An increasing number of Smartphone users, an increasing number of smart televisions, and the increasing popularity of OTT services will drive video advertising. The revenue generated from video advertisement is expected to reach $11.35 billion by 2022
OTT Advertising Trends 2022:
- Advertising will be more targeted, using data and algorithms to identify a persons interests
- More ads will be personalized, building on an individual’s personal preferences to increase customer loyalty.
- Ads will be integrated into content, The line between advertising and programming is blurring as advertisers are becoming content creators
- Brands will create their shows to bypass traditional networks and reach audiences directly
- OTT advertising is projected to grow by more than $10 billion in 2022
- The number of households with an Internet connected TV is expected to rise from 220 million in 2020 to over 300 million by 2022.
- Brands are increasingly investing in interactive ads on OTT services, allowing viewers to control what they see and do while watching content.
- Connected TVs will overtake traditional PCs as the most popular way for people to access digital media by 2022.
- Advertising will become more interactive and immersive.
- Artificial intelligence will be integrated with OTT ads to provide a personalized experience for viewers.
- Brands will use social media influencers in their advertising campaigns and traditional celebrities, which is the trend of 2022.
- More brands are investing in long-form video content rather than short clips
- The continued decline of traditional TV advertising budgets.
- A shift in focus to mobile video ads and more sponsored videos and influencers on social media platforms.
- More targeted OTT advertising
- The death of TV advertising and traditional media.
- Advertising on social media platforms will become more expensive as they continue to grow in popularity.
- Video ads will be a major part of every campaign, with higher production values required due to competition for viewers’ attention.
- Interactive ads will be more popular than static ones
- Brands will spend more on OTT ads
- More personalization in advertising, such as targeting based on location and interests
- Advertisers are turning to OTT advertising as they continue to lose interest in traditional TV
- Advertising on streaming services is expected to grow by 23% by 2022
- Marketers will have an easier time targeting viewers with ads because of the targeted audience data available from streaming sites.
- Brands that advertise on OTT channels can be confident that their ads will reach a desirable demographic, so long as they’re willing and able to pay for it.
- OTT advertising is predicted to account for $8 billion of the global advertising market by 2022
- The average audience member spends more than 2 hours a day with OTT content, compared to just 1 hour and 46 minutes watching linear TV
- YouTube and Netflix accounted for 58% of all U.S. households’ OTT viewing time- this figure is expected to grow in coming years as these platforms continue their dominance.
- By 2022, advertisers will be able to target specific audiences based on demographics such as gender, age range, household income level, or geographic location
- Video will be the dominant form of advertising
- More brands will start to advertise on social media platforms such as Facebook and Instagram
- Marketers will have to create ads that work in different formats, including vertical video
- Brands will use artificial intelligence to target people with personalized messages based on what they’re reading and watching online
- Video advertising will account for more than 40% of the global digital ad spend by 2022
- Programmatic video ads will account for 20% of all mobile video ads by 2022
- Over-the-top (OTT) platforms such as Netflix, Amazon Prime, and HBO NOW are expected to grow in popularity over traditional cable providers
- OTT subscriptions are projected to exceed $50 billion annually by 2020
- OTT advertising will be a significant force in the industry by 2022
- The number of households with TV subscriptions is expected to decline by 20% over the next five years, and we expect this trend to have an impact on the ad revenue that is generated from traditional TV
- In 2020, there were more than 9 million people who watched at least one episode of Game of Thrones through their streaming service provider
- Advertising budgets are expected to shift away from traditional media sources like cable television into digital advertising
- OTT advertising will account for more than 50% of all ad spend by 2022
- OTT advertising will be the fastest-growing segment in digital media, with a CAGR of 65% from 2017 to 2022
- The market share for branded content on OTT platforms is expected to grow from $4 billion in 2016 to $16 billion by 2020
- TV commercials are expected to decline as a result of increasing competition from other forms of ads, such as product placement and sponsored content
- The emergence of voice activated devices will lead to a rise in OTT advertising
- Brands are going to have to be more creative with their ad placement, as many consumers will be using ad blockers
- Advertisers will need to start paying attention to the type of content they’re sponsoring some viewers may not want their ads associated with certain types of programming.
- OTT advertising will account for more than 50% of all digital ad spend by 2022
- More advertisers will use data to target their audiences
- Advertisers will have a better understanding of the ROI on their ads
- Digital video advertising is projected to be worth $96 billion in 2022, up from $37 billion in last three years.
- There are currently over 200 million people watching TV through an internet-connected device like Roku or Apple TV.
- The OTT advertising market is expected to grow by 93% in the next five years
- There will be a greater focus on interactive ads, such as product sampling or games
- Brands will increasingly use targeted ads based on user data and location
- Advertisers are exploring new ways to generate revenue from their inventory, including subscriptions and pay-per-view models
- Brands will use video ads to capture the attention of viewers who are increasingly distracted by online content
- Brands will need to be more creative with their advertising strategies to compete for consumers’ attention
- More brands will create and sponsor original content rather than buying ad time on TV programs
- Advertisers will have a higher tolerance for risk, as they’ll feel less pressured to make every campaign profitable right away
- Brands will look to create more “branded content” for their audiences
- More brands will use OTT advertising as a way to reach new customers that they may not be able to access through traditional advertising channels
- Brands will want to create video ads with the highest production values possible, and this means hiring more celebrities and influencers
- Increased competition for ad space and audience attention
- More advertisers will be using OTT as a means to reach their target audiences.
- Over-the-top (OTT) advertising will become more popular as more consumers cut the cord
- Brands will invest in OTT ads to reach customers who are not watching traditional TV
- There will be a rise in ad fraud, which is where advertisers pay for ads that never show up on screens
- Advertisers will use OTT platforms like Facebook Watch and YouTube Premium to engage with their audiences
- Ads on mobile devices and wearable tech will become more common as internet access is ubiquitous
- Advertisers won’t have to worry about social media platforms banning their ads anymore because they will rely on OTT services instead of ad networks
- Video is the dominant form of advertising, with a projected spend of $5 billion.
- Brands will use ads to provide information or entertain their audience
- Advertising on social media will increase by 2021, and brands are also looking to create sponsored posts for influencers
- Branded content will be more prevalent in video and audio formats
- OTT advertising will be the largest ad format by 2022.
- The average cost of a 30-second spot on an OTT platform will increase to USD 8,000 in 2022.
- By 2022, over 50% of TV households will have an OTT subscription service
- Increasingly high quality and exclusive content is being offered as part of these subscriptions services
- By 2022, the majority of advertising will be video
- Advertisers are going to invest more in digital and social media channels.
- There is a shift from traditional to OTT advertising for TV shows and movies
- By 2022, all ads will be personalized based on your browsing history or what you’re watching
- Online advertising will increase at a rate of 80% per year
- Brands are expected to spend more in OTT advertising.
- The number of video ad impressions served every month is projected to reach 1 billion by 2021.
- Increasing the use of interactive and engaging ads with More video-based ads
- Advertisers will start to pay for customer engagement
- Companies will also be more aware of how their customers are using social media and apps and tailor their advertising accordingly
- OTT advertising is projected to grow by more than 50%
- This year, it’s expected that the number of households with an internet-connected TV will reach 1 billion
- The internet is changing the way we consume media
- Traditional TV viewership is declining, and people are turning to stream services instead
- Brands have been shifting their advertising dollars from traditional television to digital platforms to be more relevant to millennials
- Facebook announced a new ad product for a live video called “Sponsored Live” that will allow advertisers to pay for ads at the beginning of a broadcast through Facebook’s Ads Manager tool
- OTT is the future of video advertising
- The average cost for an advertisement on YouTube is around $7 per thousand views (CPM) or about $5 million for 1 million views
- OTT advertising is growing in popularity, with companies like Hulu and Amazon Prime rapidly increasing their advertising budgets
- This increase in advertisements may be due to a decrease in ad rates for TV commercials
- There are many different types of ads available, such as pre-rolls, mid-rolls, post-rolls, and interactive ads
- OTT advertising is on the rise
- Netflix is leading the way with over 1 billion hours of video content streamed per day, and they are making up for lost revenue from cable subscribers by charging brands more than $200 million to advertise during their shows
- Facebook Watch has been investing heavily in original programming and commercials because it’s a great place for advertisers to reach audiences that might not be tuning into traditional TV anymore
- OTT advertising is gaining traction as a marketing tool
- It’s important to know the difference between OTT and traditional TV
- The average American watches about 5 hours of television each day
- According to Nielsen, that number is expected to increase by 2% over the next few years
- This means more people will be exposed to ads on their TVs
- Paid search ads are the most popular form of online advertising and will continue to be so for years to come
- Facebook is becoming more competitive with Google, but it’s still been seen as a secondary option for advertisers
- Snapchat has become a viral platform for brands and influencers, but there are some concerns about the lack of data available on users
- YouTube is currently the second-largest social media site in terms of time spent on site per visitor, which makes it an attractive destination for marketers
The OTT advertising market is predicted to grow at a CAGR of 10.9% over the period from 2017-2022, and it’s expected that nearly $15 billion will be spent on this form of marketing by 2022. If you are looking for more information about how your business can start incorporating these new trends to stay ahead of the curve, then contact us today!