IAB’s study shows how marketers use OTT and connected TV interchangeably. Similar to how marketers are split in their definitions of the term “in-housing,” the meaning that marketers assign to OTT varies considerably.
Imprecise jargon adds a communication barrier. For instance, the subset of OTT for live programming is referred to interchangeably as skinny bundles, linear OTT or vMVPD (virtual multichannel video programming distributor). The lack of agreed-upon definitions for OTT and its subsets adds another layer of complexity for marketers as they aim to merge their TV and digital video strategies.
While it’s possible that confusion over definitions could impede investment, OTT ad spend is growing quickly. In September 2018, IPG’s research unit Magna Intelligence forecasts that $2 billion would be spent on OTT ads in the US, a 40% year-over-year increase. But in April 2019, Magna revised its figures to show US OTT ad spend grew 54% year over year to $2.7 billion.