by The MNTN TeamClick-Through Rate (CTR): What Is It & How to Calculate
by Cat Hausler
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Over-the-top (OTT) television has taken the world by storm; billions of people now use it every day to stream their favorite shows and movies.
With OTT viewership skyrocketing, staying apprised of the latest developments in the industry is crucial. With that in mind, here are 10 OTT trends you need to know about.
- Over 100 Million U.S. Households View OTT Content
Connected TV (CTV) content — streaming content — is what people access via OTT devices, and it is rapidly becoming the most prevalent type of television content. In 2023, an estimated 113 million American households viewed OTT streaming content at least once per month. And by 2027, experts predict that number to increase to 121 million.
There’s simply no way around it: OTT services have become too big for marketers to ignore. And that means if your brand isn’t already advertising on these platforms, now is the time to start. - The OTT Market’s Value Will Top $1T in a Few Years
In 2019, the OTT market reached a value of $121.61B. Since then, it has experienced a compound annual growth rate (CAGR) of nearly 30%. And if it maintains that sort of rapid growth, the market will surpass a value of $1 trillion globally by 2027.
Why has the market grown so fast? OTT services give marketers a flexible and cost-effective tool for reaching niche audiences. You no longer have to purchase an entire designated market area (DMA) and blast your content to thousands of people who may not be interested in your offers. Instead, you can refine your efforts (and advertising dollars) to your primary demographic. - Streaming Viewership Broke Records in May 2024
In May 2024, streaming services accounted for 38.8% of total TV usage in the United States. That record-setting performance demonstrated that Americans are continuing to cut ties with cable providers and flock toward OTT-based content consumption. The reason behind that is clear: OTT platforms allow them to consume their favorite content on their own schedule while saving money in the process. - Ad-Supported OTT Networks (FASTs) Are Growing in Popularity
May wasn’t just a record-setting month for TV streaming; it also marked another stretch of strong year-over-year (YoY) growth for two of the most popular free, ad-supported streaming services (FASTs): Tubi and Roku. Tubi enjoyed 43% YoY growth, and Roku achieved 36% YoY growth. Together, these and other FASTs collectively account for 4.1% of total TV usage, and their continued growth should inspire confidence in digital marketers. - Americans Spend Over Three Hours Streaming Content Each Day
People are spending a lot of time in front of their preferred OTT streaming devices. According to Forbes, the average American watches over three hours of streaming service content daily — just about one-eighth of their entire day.
You’ll have plenty of opportunities to connect with prospective customers by adding OTT to your marketing mix. You won’t have to target primetime TV ad slots, either, which gives campaigns flexibility and saves you money. - Nearly Two Billion People Have Streaming Subscriptions
Globally, 1.8 billion people have at least one video streaming subscription. So integrating OTT advertising into your marketing mix can be the ideal catalyst if you have your sights set on international expansion.
Even then, OTT ads don’t just allow you to market beyond borders. You’ll also be able to target specific audiences and regions precisely with geotargeting. That level of flexibility and control ensures your campaigns are more impactful and efficient than traditional television ads. - OTT Has Made TV Advertising More Accessible
OTT has made it easier for businesses of all sizes to advertise on television. For instance, a staggering 90% of MNTN Performance TV advertisers are first-timers. That’s a stat that not only speaks to the accessibility of OTT but one that acts as a clear sign to those contemplating launching an OTT marketing campaign that now is the time to take the leap.
An OTT / CTV campaign can help your brand stand out in competitive markets and reach the millions of households that stream content every single day. There are plenty of potential customers out there, and OTT can help you connect with them. - More Americans Are Opting In for Commercials
You may think that commercial-free entertainment represents the biggest draw of OTT services, but that’s not exactly the case. While some consumers value the ad-free nature of streaming content, most want a good mix of value and convenience. They want to be able to watch their favorite movies and shows on their schedule while also saving money.
In fact, two-thirds of Americans will choose to see commercials as long as they’re saving a few dollars per month. Only about one-third of respondents said they were willing to pay extra to avoid commercials altogether. That means OTT is (and will remain) one of the most powerful tools for advertising your brand on TV. - Marketers Are Rerouting Funds From Traditional TV to OTT
Marketers are known for keeping up with the latest trends. And thus far, the digital advertising industry has seemed to be closely watching and adapting to developments in the OTT space. According to a 2024 survey, 40% of video marketers have already reallocated their budgets away from traditional television to increase their CTV spending. Another 40% are shifting funds away from non-video ads to spend more on CTV, as well. - Marketers Plan To Spend More on Streaming Ads
This year, 27% of marketers say they plan to increase their streaming ad budgets, having realized the reach and impact of OTT content and preparing to use it to their advantage.
As mentioned above, most of these marketers are pulling funds away from non-video and traditional TV ads to support the expansion of their OTT programs. Together, these trends signify that OTT is the future of performance marketing.
Why Advertisers Need Performance TV for Their OTT Campaigns
MNTN Performance TV represents the next leap in over-the-top marketing. Our CTV platform combines the best aspects of OTT and CTV advertising, enabling you to create custom campaigns that align with your budget, audience preferences, and brand goals. We’ll provide you with a wealth of tools designed to put you in the driver’s seat while also ensuring your campaigns reach the right people in the ideal stage of their journey.
MNTN Performance TV can also connect you with the brightest minds in the video content creation space. Between QuickFrame and our Creative-as-a-Subscription™ service, we can assist with refreshing existing content or helping you come up with new ideas that engage your audience.
MNTN also provides the robust reporting tools you need to attribute specific content to desired business outcomes. You’ll know what works, what doesn’t, and how to make every campaign better.
Schedule a demo with MNTN today to learn more.
OTT Viewership Statistics & Trends: Final Thoughts
If nothing else, the OTT trends outlined above make one thing perfectly clear: OTT television is here to stay.
When you are ready to launch your OTT campaign, MNTN Performance TV will be ready to set you up for success! We’ll help you embrace these OTT viewership trends and connect with your audience on their terms.