Roger Franklin | OTT Executive Magazine | Volume 6, Issue 4 – Spring 2018
The video distribution industry has changed significantly. Consumer demand means it is no longer sufficient to package and provide purely linear television. What we now have is a plethora of on-demand options available to consumers who watch the content they prefer, when, where and on whichever device they want.
The rise of on-demand streaming or over the-top television is presenting advertisers with the promise – for the first time in history – of accurately targeting their television ads to viewers who will find them relevant, informative and downright fun. In the US alone, advertisers will spend 72.72 billion dollars on TV advertising this year – but are increasingly convinced that they are not getting their money’s worth. Ads are being ignored or skipped, they are losing value when watched on-demand several days later than their original airtime, and they are not being put in front of the right people to render
This is hugely detrimental to content providers, given that most non-subscription OTT services rely heavily on advertising. If ads continue to be skipped or become stale and irrelevant, providers will find advertisers reticent to part with their hard-earned cash, making the provision of OTT all but impossible.