$2.8 Billion OTT Market Opens New Doors for Radio Ad Sellers

One of BIA Advisory Services’ top revenue opportunities for radio sellers is looking even more promising one month into 2025. According to new analysis from the group, marketers continue to reallocate digital budgets into over-the-top advertising as radio leans in.

BIA previously projected $171 billion in local media revenues for 2025. While traditional AM/FM revenues are expected to decline by 1.6%, the growth in digital advertising, including OTT/Connected TV, presents an opportunity for radio sellers to offset losses, per BIA. OTT/CTV spending is now projected to increase by an average of 21% – exceeding $2.8 billion this year in the US.

The Streaming TV Playbook for Marketers in a Shifting Advertising Marketplace, a report from Premion and BIA, emphasizes the value of CTV as part of a larger media buying strategy, to net advertisers a larger, more diverse audience. These campaigns have been shown to outperform national efforts in driving consumer engagement.

A separate study, CTV/OTT Advertiser Study 2024, conducted by Premion and Advertiser Perceptions, surveyed 150 advertising decision-makers. The findings reveal that 60% of marketers plan to increase CTV/OTT spending this year, with 74% reallocating budgets from digital, social, or linear TV.

Read more on Radio Ink here.