Report: AVOD spend to double in next 5 years.

Published October 26th, 2018

Ad-funded VOD (AVOD) is outpacing other paid media with spend set to double to $47 billion (€41.2bn) by 2023 worldwide, according to WARC’s latest Global Ad Trends report.

More broadly, both consumer and advertiser investment in OTT platforms is rising: globally, spend is projected to reach $129.3 billion in the next five years.

As a medium, AVOD is still young, though notable examples of Hulu, HBO Now, and Sony’s Crackle, as well as reported interest from Amazon, hint at its future power.

Compared to other paid media in WARC’s International Ad Forecast, AVoD is growing faster. The expected $23.8 billion in brand investment that AVoD will receive this year equates to a 5.2 per cent share of global adspend, but spend has increased year-on-year. As a percentage of total OTT spend (estimated by Digital TV Research at $68.7 billion this year – up 29 per cent from 2017), AVoD will account for 34.7 per cent.

“Consumers’ voracious appetite for video content anywhere, on any device, has been propelled by SVoD services such as Netflix. But it is AVoD platforms which present the opportunity for advertisers to marry rich consumer data with pinpoint targeting during engaging content,” says James McDonald, Data Editor, WARC. “This is why AT&T and Amazon are exploring moves into the AVOD sector next year, with the ultimate aim of taking the lion’s share of a market expected to be worth $47 billion by 2023.”

At the strategic level, consumers’ appetite for cross-device streaming is creating an impact. A full 81 per cent of consumers now say it is important that they can watch TV programmes whenever they want.

The wide array of publisher specs, insufficient lead time required to track down all creative assets and a lack of standardised measurement when buying cross-channel audience-based inventory are cited as major concerns by practitioners.

As a result, OTT is not currently front of mind when building media strategies; just a quarter (26 per cent) of US CMOs regard OTT as either very or extremely important to their plans. This despite evidence showing integrated campaigns are 31 per cent more effective at brand building.

Source: Report: AVOD spend to double in next 5 years

Sports drive global live TV streaming to 54% YoY growth

Research by Conviva has revealed what the company calls ‘staggering’ growth in global TV streaming. According to the Conviva State of the Streaming TV Industry Report for Q3 2018, viewers are increasingly demanding a seamless streaming experience, and publishers are rising to the challenge to deliver higher overall quality of experience. It showed that there has been a 52% jump in plays and 63% growth in total viewing hours recorded year-over-year (YoY), including a major increase in traffic during the World Cup football tournament. As viewers become more demanding, they were less tolerant of a poor experience, and were seen to be shifting to platforms and devices that offer a better experience, trading PC viewing in favor of connected TVs and individual publisher apps for virtual multichannel video programming distributor (MVPDs) with bundled offerings. Virtual MVPDs are becoming more attractive, with 292% more plays and 212% more viewing hours YoY in the U.S., drawing significant share away from publisher apps by offering bundled content with better quality delivery, resulting in higher engagement. The measurement shows that connected TVs now form more than 50% of global viewing and virtual MVPDs make up 75% of all US viewing. mobile growth has slowed in favor of connected TVs, which experienced a 145% growth in plays and a 103% growth in viewing hours. The report also showed that live sports streaming has surged, as viewer confidence in streaming TV grows and providers deliver improved quality. NFL streaming in September alone accounted for roughly 3% of total streaming plays and viewing hours in the US, as more fans than ever elected to stream NFL games. Download the full report here