[eMarketer] Pluto TV and the disruptive advertising business model
As consumers’ media consumption trends shift and the digital space continue to evolve, the advertising space is increasingly adapting to these market changes.
Advertisers are channeling more money into streaming video with a December 2020 survey by Advertiser Perceptions cited by Next TV shown that 42 per cent of agency and marketing professionals in US had indicated interest in increasing ad spending on Over the Top, OTT, streaming services in 12 months with 56 per cent indicating that their spend on OTT would not change from last year.
The growing interest towards video streaming services by advertisers is best exemplified by Pluto TV, a free streaming service operated by global media giant ViacomCBS. According to a forecast by eMarketer, Pluto TV is poised to earn $786.7 million as net US ad revenues in 2021 a 7.7 per cent growth compared to last year. This will grow to over $1 billion in 2022.