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Ad spend in OTT is projected to hit $40 billion by 2020, which is nearly half of the $85 billion in forecasted total TV ad revenue. Another concern is the rising threat of the technology giants—Facebook, Google and Amazon—as they hone in on building their video business and further disrupt traditional media broadcasters and true OTT content channels. Data: The next frontier in the OTT evolution Achieving OTT addressability requires having true precision targeting at the household level and then down to the viewer level. This is done by collecting viewer data and analysis of viewer data into audience segments, such as auto intenders or travel enthusiasts. Those segments are then applied to advertiser campaigns. With the use of real-time dynamic ad insertion and ad decisioning, the ad is then delivered to the person depending on the audience group that they fall into. This is true audience planning rather than TV genre audience planning. By leveraging datasets to triangulate the viewer, similar to the digital world, advertisers are able to identify audience segments to deliver tailored campaigns. Addressability in OTT is complementary to linear TV buys.
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