Ad spend has not caught up to time spent for subscription video

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Subscription OTT video is chasing linear TV in terms of time spent in the US. We estimate adults still spend significantly more time per day watching TV, but that figure is decreasing and will fall below 3 hours this year. Meanwhile, for subscription OTT video, time spent will surpass an hour and a half per day. But ad spend on these platforms is not proportional to time spent.

Beyond the chart: Why is subscription OTT ad spend so far behind? Even though the eyeballs are there for streaming, the ad infrastructure isn’t—yet. As ad-supported streaming becomes the new normal, this will change. And we expect that streaming companies will face increasing competition for those ad dollars, as the money once tied up with Hulu, Roku, and YouTube trickles to other streamers.

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Methodology: Estimates are based on the analysis of various elements related to the ad spending market, including macro-level economic conditions; historical trends of the advertising market; historical trends of each medium in relation to other media; reported revenues from major ad publishers; estimates from other research firms; data from benchmark sources; consumer media consumption trends; consumer device usage trends; and eMarketer interviews with executives at ad agencies, brands, media publishers, and other industry leaders.

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