The accessibility and originality of over-the-top (OTT) content has become one of the many reasons for its popularity among consumers. Brands have seen the value of ad placements on platforms such as Hulu, Pluto TV, Tubi, Peacock, and Paramount+. In fact, advertisers’ budgets have been “over the top” on OTT with an average spend of $3.3 billion per quarter since Q4 2021. According to the State of OTT Advertising in the U.S. 2023 report, nearly 15 percent of total digital ad spending was through OTT platforms between October 2021 and November 2022.
Over the last 12 months, Hulu, Pluto TV, Paramount+, and Peacock showed a similar upward trend in ad spend. Tubi, however, had the highest growth from Q4 2021, with ad spend climbing 37 percent to $236 million in Q3 2022.
Our data also reveals that Hulu is most popular among younger audiences, with nearly 60 percent of those who have installed its mobile app falling into the under 35 age range in Q3 2022. Paramount+ and Pluto TV are most popular among audiences over the age of 35, with 40 percent and 39 percent of those who have installed the mobile apps falling into that range, respectively.
In the first half of Q4 2022, the Restaurant Ordering & Delivery and Grocery Delivery categories increased their ad spend by 11 percent and 14 percent year-over-year, respectively. San Francisco-based grocery delivery company Instacart was once again the top food delivery advertiser in Q3 2022. The company increased its ad spend by approximately 13 percent year-over-year in October and November 2022, featuring American singer Lizzo in its advertisements. DoorDash, Uber Eats, and GrubHub followed as the Nos. 2, 3, and 4 advertisers in both those months.
By investing in OTT, brands have the opportunity to reach targeted audiences based on interests and categories. And as OTT platforms are continuously improving each year with new content releases and subscription tiers, we can expect to see more downloads and viewership in the coming year.
With Sensor Tower data, you can understand how your digital strategy measures up to your competition. For more insights into OTT streaming platforms and brands’ creative strategies, download the full report below: