Although traditional TV advertising still has a wide reach, the growing popularity of OTT can't be ignored. Connected TV ad spend will likely reach $16 billion this year, a 25% increase. If you're still on the fence about this platform, we've got ten promising OTT statistics from 2021 that might change your mind.
1. By 2023, OTT ad revenue from video advertising will reach $119 billion. (Source: Statista)
This accounts for 51% of all revenues from OTT, including subscription costs. The promise of a high ROI is likely why so many marketers are devoting more ad spend to connected TV platforms. OTT ad spend is predicted to nearly double by 2026, so its national revenue will likely climb along with it.
2. OTT viewership rose in 2020 and has since plateaued for 2021, with the average household streaming nearly six hours per week. (Source: Comscore)
Around the same time, the growth of ad-supported services also increased by 9%, according to the 2020 report. This shows that OTT users are more receptive to ads, even with the availability of ad-blocking software on mobile devices. Even short videos tend to have higher production costs than display ads, so they're a riskier investment. However, because of the increased viewership OTT attracts, you're almost guaranteed a better ROI.
3. Between 2020 and 2021, OTT streaming to TVs jumped by 115%. (Source: Conviva)
Watching OTT on mobile devices may be convenient, but it's hard to appreciate movies on such a small screen. If you have an integrated marketing strategy, OTT streaming to TV offers an even more seamless customer journey. The viewer can watch your ad and use their smartphone to look up your brand in real-time.
Most importantly, smart TVs can act as a gateway to traditional-only TV watchers who are interested in adding OTT services. This keeps OTT viewership and the resulting revenue to advertisers accelerating.
4. Livestreaming for OTT is up to 24% of all viewers in 2021, a 14% increase in just three months. (Source: Conviva)
It's clear that the majority of consumers favor the real-time thrill and interaction that live-streamed programs provide. Ads during these programs are almost always un-skippable, which means more viewer impressions.
5. Americans watch over 12 hours of live TV per week in 2021. (Source: Statista)
The popularity of linear television is still so great that many cord-cutters will download apps just to watch live TV programs. Signing up for an OTT platform takes just a few clicks, and viewers can begin watching instantly. With OTT's ever-growing list of live television apps, you won't miss out on viewers that prefer to watch live programming through OTT.
6. The popularity of on-demand OTT services has increased by 45% in 2021. (Source: Conviva)
Nowadays, there are some shows that are only available on certain OTT platforms. If you can find out which programs your audience prefers, you can place your ads on them to get guaranteed conversions. Also, keep in mind that on-demand OTT watchers seek out these platforms for specific content. This makes them more attentive to the programs (and their ads) compared to casual TV watchers.
7. OTT publishers with social media accounts report 24% more engagement from their followers. (Source: Conviva)
Social media is one of the best platforms to form positive and long-lasting relationships with your customers. In addition to notifying them about important updates about your brand, you can resolve questions and concerns, increasing brand loyalty.
8. OTT advertising impressions rose by 13% in early 2021. (Source: Conviva)
While there are still many attentive viewers that watch linear television each week, this statistic proves OTT also has its fair share. More impressions on a single ad make it a better investment, plus it gives your leads a higher conversion rate.
9. YouTube will account for 13.2% of subscription revenue in 2021. (Source: eMarketer)
Although Netflix and Disney have the highest OTT subscriber counts, these platforms don't have ad breaks. Millions of watchers tune in to this platform to watch a variety of content, from live TV to independent creators. Interactive ads on YouTube allow mobile users to click through to your socials or online storefront seamlessly through the app.
10. Locally activatedOTT advertising will hit a value of $1.2 billion by the end of 2021. (Source: BIA Advisory Services)
This proves that you don't need to use OTT to market to a nationwide audience. Nowadays, there are tools to ensure that ads for your local storefront are only seen by those in your area. Local OTT advertising opens up opportunities to draw in customers that might not use traditional cable services.
Ready to Get Started With OTT?
Judging from OTT statistics in 2021, the medium will only gain more traction in the coming years. OTT can also be successfully integrated with other marketing tactics, especially traditional TV advertising. To enjoy maximum ROI from OTT advertising, we recommend working with a knowledgeable media partner.