Large increase in Ad spending for TV/OTT Providers

Recently I read a report issued by Pixalate on the " STATE OF CONNECTED TV/OTT: AD SUPPLY TRENDS REPORT, Q3 2020". Pixalate's data science and analyst team analyzed programmatic advertising activity across over 300 million connected TV/OTT devices to compile this research. The results are from October 1 2019 through September 30, 2020. Spoiler alert, the numbers are impressive!

First, the OTT/CTV ad spend will reach $8.1B in 2020, and rise to $18.3B by 2024. Pixalate's data shows a 70% increase in global OTT/CTV ad spend in 2020 - despite the pandemic.

Although the ad spend is up an impressive 70% in 2020, more impressive is that it is up 119% vs Q3 2019.

By region, from Q1-Q3 2020, North America had a 70% ad spend increase, APAC had a 97% increase, EMEA had a 50% decrease. LATAM had an impressive 127% increase, even after a drop in Q2.

With this overwhelming increase in ad spending, it's vital that OTT Providers deliver the ads flawlessly, and without issue. No doubt the ad suppliers have KPI's with the OTT providers to ensure their ads are delivered, and without errors. In an OTT environment, a lot can go wrong due to the complexity of ad delivery. There are different methods for Digital Ad Insertion that can be client side, or server side. There is fetching of the ad, ad transcoding to fit the different bit rates, manifest manipulation etc. A lot can go wrong.

Here are Interra systems, our Orion (linear) and Orion OTT (ABR) solutions are heavily focused on measuring and giving the OTT Provider the tools and mechanism to ensure overall Quality of Ad's. If there is an issue, our tools allow the Provider to quickly identify, and resolve the issue.

Check out our whitepaper on the challenges of Dynamic Ad Insertion. Download it here.