OTT For the Win in 2020
If you’ve been gingerly dipping your toes into OTT (Over The Top) advertising—2020 is your chance to jump in and make a big splash! The new year will not only ring in a new decade, it will also hold the Tokyo Summer Olympics and U.S. presidential elections—just think of all the eyes tuning in to these momentous events!
The way the we consume entertainment has changed since the days of traditional TV, but the average time spent watching digital video is on the incline. Audiences are out there—and they are on multiple devices.
There are 200 million active CTV (Connected TV) viewers and nearly 98 million households that own a CTV device. OTT and internet-enabled devices like Roku, Firestick, and Xbox are great for reaching audiences on multiple devices. Based on those numbers alone, it’s clear that Advanced TV will be a big winner in 2020.
The Olympics have embraced changing TV viewing habits with their slogan, “Discover Tomorrow,” and a Sony/Panasonic partnership to broadcast games in 8K resolution in 2020. With 26 million viewers (that’s one-fourth of all TV viewers), NBC is on pace for $1.2 billion in ad spending during the games and the weeks leading up to it.
General Manager of the IOC’s Global Olympic Channel, Mark Parkman, stated “as the Olympic Channel continues to grow and evolve, we are dedicated to making our content available wherever our audiences are watching, in an effort to create more personalized experiences for our viewers.”
On November 12th, 2019, Disney launched its much-anticipated platform Disney+. Disney is new to the streaming scene but is set to compete with the big players like Netflix and Hulu in 2020. Disney+ achieved 3.2M app downloads within the first 24 hours post-launch.
There are no shortages of audiences to engage with via OTT. How do you make sure you’re not wasting your ads on the wrong ones? Good news—OTT is addressable, meaning it can serve different ads to different people consuming the same content. You can use sophisticated targeting capabilities to put the right messages in front of the right people, allowing for more personal connections and meaningful experiences for consumers.
Political campaigns have also caught on to the trend, with OTT ads increasing 200% between 2016 and 2018. Digital video went from 1% of advertising budget to 30% of the budget in just two years. The 2020 election will also see a bigger piece of the OTT pie with 2018 budgets coming in at $740 million and 2020 budgets projected at $1.6 billion. That’s the largest percentage of overall budgets devoted to digital video to date!
2020 may seem like it’s still in the distant future, but these big events will be here before we know it! Don’t wait when it comes to OTT—2020 is your year to win!