OTT ad revenue to hit over $2 billion in 2018, Magna says
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As more people cut the traditional TV cord and turn to subscription services like Dish’s Sling TV or Hulu’s live service, ad revenue for such so-called over-the-top services will reach just over $2 billion in 2018, up 40 percent from 2017, according to new projections out of Magna, a division of Interpublic Group.
At the same time, spending on set-top box addressable advertising, in which commercials target specific households, is expected to total $815 million this year, up 28 percent, as more marketers look to more precisely target consumers and such technological capabilities become increasingly prevelant.
Magna increased its forecast for U.S. ad revenue growth this year to 5.2 percent, a bump up from its June projection of 4.7 percent, citing a stronger-than-expected first half and robust macro-economic forecasts. U.S. ad revenue will reach $207 billion in 2018, according to Magna, surpassing the $200 billion mark for the first time when including special events like the Winter Olympics and the FIFA World Cup.
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