ReportSensor Tower
The State of OTT Advertising in the U.S.: An Analysis of OTT Ad Spending Trends and Top Advertisers
1 Jan 202331 pages~22 min full read
The U.S. OTT advertising market reached a mature state between late 2021 and 2022, averaging $3.26 billion in quarterly spend and accounting for nearly 15% of total digital advertising investment.
See it on page 5Consumer Packaged Goods replaced Financial Services as the leading spending category by mid-2022, while the automotive industry increased its OTT ad spend by 74% year-over-year.
See it on page 8Tubi emerged as the fastest-growing publisher with a 37% increase in ad revenue, while Hulu and Peacock remain the dominant platforms for reaching viewers under the age of 35.
See it on page 10OTT has transitioned from an experimental channel to a primary driver for user acquisition, evidenced by brands like Turo allocating over 50% of their total digital budgets to streaming ads.
See it on page 21Grocery delivery services increased their OTT investment by 14% year-over-year, contributing to a broader trend where sectors like food delivery and travel use streaming to drive measurable mobile app installations.
See it on page 24Major brands including United Airlines, Instacart, Booking.com, and UberEats are leveraging OTT to capture shifting consumer attention and drive direct performance outcomes.
See it on page 3Over the course of late 2021 through 2022, the United States Over-the-Top (OTT) advertising market solidified its position as a critical component of the digital landscape, averaging $3.26 billion in quarterly expenditures. This investment represents nearly 15% of all digital advertising spend, signaling a maturation of the sector. While Financial Services previously led the market, Consumer Packaged Goods emerged as the primary spending category by mid-2022. Simultaneously, the automotive industry demonstrated aggressive expansion with a 74% year-over-year increase in ad spend, reflecting a broader trend of traditional industries pivoting toward streaming platforms to capture shifting consumer attention.
Platform dynamics reveal a competitive environment where established services and rising challengers cater to distinct demographics. Hulu and Peacock maintain a strong foothold among viewers under the age of 35, while Tubi has distinguished itself as the fastest-growing publisher, recording a 37% increase in ad revenue. This growth is mirrored by specific service sectors, particularly travel and food delivery, which utilized OTT to drive direct consumer actions. For instance, strategic campaigns from brands like Booking.com and UberEats resulted in measurable performance gains, such as significant spikes in mobile app installations following targeted high-spend periods.
The transportation and grocery sectors further illustrate the shift toward OTT-centric digital strategies. Companies like Turo now allocate more than half of their total digital budgets to streaming advertisements, while grocery delivery services saw a 14% year-over-year increase in investment. These trends underscore a broader industry conclusion: OTT has evolved from a secondary experimental channel into a primary driver for brand visibility and user acquisition across the American economy. As brands like United Airlines and Instacart dominate their respective niches, the ability to track creative impressions and seasonal spikes remains essential for navigating this high-growth advertising vertical.
