OTT Ad Revenue to Quadruple by 2020

According to the Diffusion Group, revenue from OTT video advertising - that is, commercial advertising placed in full-length TV-quality programming delivered via broadband - is expected to grow nearly fourfold between 2015 and 2020. By 2020, OTT TV ad revenue is expected to be approximately $40 billion, nearly half of 2020's projected $85 billion in total TV ad revenue.

The research house expects the average ad load for a 30-minute legacy linear program to decline by 38% between 2014 and 2020, from approximately 8 minutes to around 5 minutes. During the same period, average OTT TV ad loads are expected to increase 63%, from 3.2 minutes to 5.2 minutes, bringing OTT TV ad loads in line with those of legacy linear video.