BIA Puts Local OTT Ad Revenue at $857M, OTT Advertising Will Be A Clear Winner In The 2020 Elections and other top news

Few key things that happened around the Ad Tech & Media Tech world this week.


BIA Puts Local OTT Ad Revenue at $857M

Local over-the-top advertising revenue is expected to be $857 million in 2019, up 43%, according to a new estimate from BIA Advisory Services.BIA expects OTT revenue to adjust 148% to $213 billion by 2024. “OTT offers a considerable opportunity for broadcasters to grow revenue,” said Tom Buono, founder, and CEO of BIA Advisory Services. “As consumers shift their viewing habits, it’s an opportunity to extend the value of traditional over-the-air content. We’ve added OTT to our forecast to track this growing area and scope the revenue opportunity.” BIA defines OTT advertising as locally targeted advertising included on streaming video that is delivered to TV sets via internet connections. BIA’s OTT ad forecast focuses on the local activation of OTT video impressions on Connected TVs. This ad inventory can be both competitive and complementary with local TV and cable inventory. “The industry has reached a stage where there are several existing and emerging OTT players that have high growth potential,” said Mark Fratnik, chief economist and senior VP at BIA. “By partnering with them, broadcasters can drive new revenue by delivering their valuable content and diverse audiences. I believe we’re at the tip of the opportunity and we’re working closely with OTT firms to analyze revenue opportunities.”


OTT Advertising Will Be A Clear Winner In The 2020 Elections

The ability to target television advertising to specific audiences is going to play a major role in the 2020 Presidential and Congressional elections. That’s because targeting political advertising based on geography and demographics will allow candidates to get an incremental lift by reaching voters they would otherwise have missed with a linear-only campaign. The Cambridge Analytica scandals and recurring instances of Russian and other foreign interference have made many voters skeptical of political ads on social media, many of which are disguised as posts from cause-related organizations. While Facebook, Google, and Twitter all claim to be working to minimize the wide-scale hijacking of their networks, they’ve done little to put voters’ minds at ease. Even Facebook’s latest attempt — a claim that they will tighten the rules around verifying those companies that can place political ads on the platform — is being met with widespread skepticism, with one expert calling it “incremental baby steps forward [that would] not particularly position us well in the lead-up to elections.” That’s why TV advertising will become so important this year. As per the Federal Elections Commission (FEC), all TV commercials from a campaign are required to have an ‘I am [CANDIDATE NAME] and I approve this message’ tag at the end. That means that viewers are assured that the ad is not a piece of Russian kompromat and represents the official views of an actual campaign. That will make them far more valuable during the upcoming election cycle.


India’s ALTBalaji partners with Microsoft to bring online video streaming to offline users

ALTBalaji, a leading video streaming service in India, has partnered with Microsoft and fintech firm Eko as it moves to expand its subscriber base in the country that is already larger than any of its local rivals. ALTBalaji, which has more than 27 million paying subscribers, said it will use Microsoft’s  BlendNet technology to help its users download and access more titles without consuming large amounts of cellular data. Microsoft is providing ALTBalaji with BlendNet technology that enables videos to be disseminated through a combination of cloud-enabled metadata systems. “The file is transferred onto the recipient’s mobile using peer-to-peer local Wi-Fi. While the creation of this cloud plane might need a data network, the transfer of data will happen over local Wi-Fi,” Microsoft said. The idea is to move much of the downloading without relying on cellular data connectivity, which remains costly for the masses in India. ALTBalaji subscribers will be able to download files from their nearby Eko retail stores, as well as from other users who have the same files. When neither options are viable, the downloading is paused. Nachiket Pantvaidya, CEO of ALTBalaji and Group COO of Balaji Telefilms, said he hopes the new feature would help the video streaming service attract new users who don’t have access to cheap and reliable data. He said the firm also expects the feature to boost engagement for other subscribers on the platform who’re watching two to three episodes on the app each day.


OTT tops the IBC2019 agenda

The impact of OTT services dominated discussions at IBC2019 with panels focussed on SVod vs AVoD, niche content and how streaming is driving a golden era of creation. With the industry facing disruption from the launch of new streaming platforms and services, the theme of OTTs reverberated around IBC2019. The likes of Apple, Disney, and NBC all set to shake-up the market with new platform launches increasing the need for new business models and more aggregation, according to one conference panel on OTT. The panel, which featured executives from streaming services such as BritBox, Crunchyroll and ZEE5, looked at which business model will win the day in the fiercely erupting streaming wars: AVoD, SVod or both? According to Crunchyroll/VRV head of products and strategy Henry Embleton, companies such as Amazon TV and Disney will have a strong future in on-demand media. “Amazon because of its whole end to end ecosystem of content and data. Plus it is likely to start spending big money on sports rights such as the Premier League to build subscribers. Disney is in a strong position too, simply because of the quality of its slate of content,” said Embleton.


HBO won Emmys night, but the future belongs to streaming platforms

Last night’s Emmy Awards was nothing new. HBO, Amazon, and Netflix took home many awards at TV’s most prestigious event. Yet the most interesting part of the evening wasn’t necessarily who won, but the commercials for major streaming services that played between acceptance speeches, a signal of how stretched out TV is about to become. The ads were louder this year. The Emmys, airing this year on Fox, were full of commercial spots for Apple TV Plus, Disney+, Amazon Prime Video, Hulu, and Netflix. There were a few scattered promotions for standard broadcast networks, including commercials for new series like Prodigal Son and network favorites like The Masked Singer, but it was a streaming service’s world. Apple used the Emmys evening to play short teasers for a number of its shows; Disney kicked off the evening by securing the first commercial break, playing a new commercial for Disney+ and announcing that preorders are now available. Even people at the Emmys poked fun at the incoming war for people’s money. Comedian Thomas Lennon started off his evening announcing the awards show by cracking a joke about the real battle of the evening being between HBO Now’s $14.99 subscription fee and Netflix’s $12.99 price. HBO won when it came to award numbers (nine), but it was closely followed by Amazon (five) and Netflix (four). As The New York Times,’ Kyle Buchanan tweeted, this year’s “Emmy telecast is really making the case against television.” Or maybe a case against a particular era of television. TV is getting bigger, and trying to catch everything is becoming more difficult.


Other Case Studies