Standard Media Index (SMI) assessed $90 billion of ad spend data from major media buying groups and independent agencies.
Despite just 22% of US television advertising budgets being devoted to OTT, and 78% allocated to linear, some advertising categories are shifting towards OTT. The “Apparel & Accessories” category has the highest advertising budget for OTT at 61%, followed by “Travel Services” (36%).
OTT and traditional TV CMP rates have risen dramatically as a result of their capacity to target specific audiences and extend reach. Between January and May 2021, overall media ad expenditure climbed 22%, and OTT by 55%.
However, specific advertising sectors are swinging towards OTT at “different levels,” according to Ben Tatta, President, Standard Media Index. For example, as compared to what they spend on linear, the “auto” and “prescription drugs” categories splurges on OTT sports channels.
[3 minute read]