Advertisers Following Viewers as They Move to Over The Top

Reaching over-the-top viewers has become an important new strategy for advertisers, content owners and multi-channel video serving provider, according to a new survey from video ad service company SpotX.

The survey, conducted by Kagan, a division of S&P Global Market Intelligence, found that 100% of advertisers said the biggest change in their strategy was the result of changing viewing habits.

The survey’s advertising respondents said they expected higher return on investment on OTT, where they are able to use data and adopt audience-based buying.

Now, only 11% of advertisers said they spend 21% to 40% of their ad dollars on OTT platforms, but looking ahead two years, 67% expect OTT ad spending in that range.

Related: fuboTV Connects With SpotX For Programmatic Advertising

Among those advertisers, 44% said they expect to see an 11% to 20% increase in return on advertising spending by moving from traditional ad buying to audience-based buying, with 33% expecting a 6% to 10% increase.

For advertisers, 78% of respondents ranked data security and measurement as the primary challenges in adopting audience-based buying of ads.

“As more viewers turn to OTT services for their video, advertisers need to follow viewers to the platforms they are using. OTT services provide both a challenge and an opportunity for advertisers and those who want to monetize their content via advertising,” said Michelle Abraham, senior analyst at S&P Global Market Intelligence.

In the survey, more than 60% of respondents say they value pay TV and OTT audiences differently, with 69% of content owners and 44% of advertisers agreeing.

“The OTT ecosystem is continuing to evolve and it’s important for all of us in the industry to examine the current state of the market so we can better understand the needs and wants of publishers and advertisers alike,” said Mike Shehan, co-founder and CEO at SpotX. “The results from this survey prove that ad dollars are shifting beyond the scope of traditional television for a variety of different reasons but that we still face challenges, many of which SpotX is working to tackle head on.”

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.