Since we originally posted this article last year, it has become one of our most popular posts. So, we’re posting this update. Recently, the movement away from traditional cable to OTT/CTV streaming has accelerated. According to new research by Digital TV Research, the number of households without a pay-TV subscription will rise from 11.34 million in 2010 to 72.86 million in 2027.

US pay TV penetration to slip below 50%

US traditional pay TV penetration will slip below 50% of TV households in 2026 – down from 91% in 2010 and down from 60% in 2021. Digital TV Research forecasts 60 million pay TV subscribers by 2027; declining from 105 million in the peak year of 2010.
Simon Murray, Principal Analyst at Digital TV Research, said: “The US lost 6 million pay TV subscribers each year from 2019 to 2021. Losses will decrease from now on, but the 2027 total will be 12 million lower than 2021.”

The number of households without a pay TV subscription will rocket from 11.34 million in 2010 to 72.86 million in 2027 due mainly to cord-cutting.

Pay TV revenues peaked in 2014, at $101 billion. A $48 billion decline is forecast between 2014 and 2027; halving the total to $53 billion.


What is OTT/CTV Advertising?

OTT (Over-The-Top) is the streaming delivery of TV over the Internet without the need for traditional cable or satellite pay-TV services. There are an estimated 63 million “cord-cutters” in the US only reachable by Connected TV and digital channels. Connected TV Advertising (CTV) and OTT Advertising provide a marketing platform for engaging digital TV streamers with precision digital targeting using in-market data, demographics, offline behaviors and geofencing and household geofencing.

How OTT is Delivered?

The accessibility of OTT content is one of the many reasons it’s so popular. To stream OTT, customers only require an Internet connection and a compatible hardware device.

Mobile OTT Devices: Smartphones and tablets are able to download OTT apps to stream on-the go.

Personal Computers: Consumers can access OTT content from their desktop or laptop computers using apps or web browsers.

Smart TVs: TVs with built-in technology that enables the user to easily access streaming content. Samsung, Sony, Vizio, LG and virtually every major TV manufacturer offers smart TVs. More than 70% of the TVs sold these days are now smart TVs, according to market research firm IHS Markit.

Media Devices: Streaming media players are a popular add-on for TVs, bringing streaming movies, TV, music, and games to TVs. The most common examples include Apple TV, Sony PlayStation, Google Chromecast, Xbox, Roku, Amazon’s FireStick and more.

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OTT Advertising Combined with the Precision of Geofencing

When we combine OTT Advertising with Geofencing, layered in with over 1,300 demographic and psychographic variables that target your ideal consumer, we are reaching those who are most likely to become a customer.

Benefits of OTT Advertising

  • OTT advertising allows you to deliver your commercial message at a lower CPM than cable or broadcast TV advertising.
  • Lower CPMs means that your commercial will reach more people more often.
  • Your commercials are non-skippable.
  • Your commercials will reach consumers that can’t be reached with traditional TV or cable advertising.
  • Target physical addresses using GPS data to serve OTT ads with unmatched precision and scale.
  • Combines the precision of digital targeting with the ability to target users based on keywords, context, and other online behaviors.
  • Take advantage of numerous combinations of demographic variables to target your ideal audience.
  • Connected TV watchers tend to be more engaged with content.
  • BAM’s geofencing technology allows us to set up a conversion zone and measure foot traffic to your retail/brick and mortar location.

OTT/CTV Advertising Reporting

BAM supplies our clients with deep analytics and metrics for every OTT campaign. Our programmatic display data is compiled into a client reporting dashboard. We are able to track impressions, ads served, geographic penetration, reach and frequency, foot traffic and so much more.

Connected TV watchers tend to be more engaged with content.

BAM’s geofencing technology allows us to set up a conversion zone and measure foot traffic to your retail/brick and mortar location.

Let us show you how OTT can help your business.

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