OTT TV Advertising to Hit $40B by 2020

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Advertising on over-the-top TV programming will grow four-fold to $40 billion by 2020, according to a new report.

According to the Diffusion Group, as ad revenue for OTT grows, TV ad revenues will remain essentially flat at about $85 billion.

The Diffusion Group says between now and 2020, the ad load for TV programming delivered via broadband will increase 63% to 5.1 minutes per half hour from 3.2 minutes. At the same time the ad load in linear TV programming will fall 38% by 2020, putting them at similar levels.

Linear TV network will offset the drop in ad load with increase sales of native advertising and sponsorships.

Jon Lafayette
Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.