As traditional linear TV consumption continues to decline, OTT streaming providers such as Hulu, Pluto TV, Tubi, Peacock, and Paramount+ have seen significant growth, making them a go-to for advertisers and brands to reach audiences as they cut the cord, Pathmatics noted in its latest report
According to Pathmatics, US advertisers spend a combined average of US$1 billion per month in their effort to reach consumers via OTT channels. The company’s “State of OTT Advertising in the US” report provides an in-depth analysis of the latest advertising trends on OTT.
The study also revealed that, between October 2021 and January 2022, OTT ad spend in the United States reached US$4 billion and accounted for 13% of the $32 billion in total digital ad spending. OTT had more than 155 billion impressions in the United States over this period.
Furthermore, regarding platforms, the report noted that the Disney-owned OTT service Hulu is most popular among younger viewers, with close to 60% of those who have installed its mobile app being under 35 years old. Peacock and Paramount+’s adopters are also younger, with nearly 50% and 47% of those who have installed its mobile apps falling into the under 35 age range, respectively.
This suggests that Hulu stands to be an ideal publisher for advertising that targets younger audiences, while Pluto TV would be recommended for those targeting an older audience. In fact, advertisers in the Arts & Entertainment and Dating categories spent more than half of their total OTT budget on Hulu between October 2021 and January 2022.
“With Disney+’s plans to roll out an ad-supported subscription tier later this year, we’ll see if brands will be spending more on OTT advertising in the coming months,” the report concludes.
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