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
Jun 29, 2017
May 17, 2017
More than half of all Americans, or 56 percent, have the ability to watch internet video on their TVs — but they’re still watching regular TV most of the time.
Since 2015, there has been a 20 percentage-point increase in the share of adults who can get internet video on their TV, either through the TV itself or by using a device like a Chromecast, according to a new report from ad trade agency Interactive Advertising Bureau.
But a large portion of the time (39 percent), people are using these TVs to watch old-fashioned live TV. As for internet video, they’re streaming Netflix or YouTube or Hulu about 24 percent of the time.
Fortunately for subscription streaming services like Amazon and Netflix that offer TV-on-the-internet packages, that share is going up.
People who do use their TVs to watch Netflix or Hulu are doing so more often. About half (46 percent) of people with streaming-enabled TVs watch streaming video daily, up from 32 percent in 2015.
What are they streaming? Seventy-nine percent watch TV shows (either currently airing, or shows that have aired in the past), whereas a close 70 percent watch subscription originals like Netflix’s “Stranger Things” or Hulu’s “Handmaid’s Tale.”
Sep 11, 2018
Televisions are often the big center piece of a living room. Chairs are faced towards the device, usually a table for drinks in front of it, and nice speakers attached for the best home-cinema experience. Which means it would be a shame if you are not present on the big screen. How can you compete with the likes of Netflix, HBO GO and Amazon Prime Video, when it comes to bringing video into the living room -- if you don’t actually have a SmartTV app?