Media analysis firm BIA Advisory Services is expanding its forecast reach to include local over-the-top (OTT) advertising, which the company predicts will grow rapidly over the coming years.
BIA estimates that 2019 will generate $857 million in OTT revenue, and will further increase nearly 148% to $2.13 billion by 2024.
“OTT offers a considerable opportunity for broadcasters to grow revenue,” said Tom Buono, founder and CEO of BIA Advisory Services, in a statement. “As consumers shift their viewing habits, it’s an opportunity to extend the value of traditional over-the-air content. We’ve added OTT to our forecast to track this growing area and scope the revenue opportunity.”
BIA’s OTT ad forecast focuses on the local activation of OTT video impressions on connected TVs, and said that ad inventory can be both competitive and complementary for local linear TV ad budgets including local TV and local cable. The firm defines OTT advertising as locally targeted advertising included on streaming video that is delivered to TV sets via internet connections.
“The industry has reached a stage where there are several existing and emerging OTT players that have a high growth potential. By partnering with them, broadcasters can drive new revenue by delivering their valuable content and diverse audiences. I believe we’re at the tip of the opportunity and we’re working closely with OTT firms to analyze revenue opportunities,” said Mark Fratrik, chief economist and senior vice president at BIA Advisory Services, in a statement.