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
Sep 11, 2020
On our last day On Location at IBC, Kjeld Beijer, 24i's Partnerships Manager takes the opportunity to catch up with Unified Streaming's Rochelle Morrison and Anne Zant down by the Amsterdam waterfront.
From providing streaming solutions in the cloud or on-premise, Unified Streaming is a key partner within 24i's Smart Ecosystem and prides itself on enabling video service providers with encoding and real-time packaging to reach any device.
When talking to Kjeld on the effects the pandemic has had on the TV and video industry, Rochelle and Anne both cite examples of how some companies, including a few sports brands, are getting creative on how they produce live events while keeping within the new restrictions, and how others are offering new SVOD and AVOD content packages to entertainment-hungry audiences around the world.
Finally, Anne shares a tip on how to stay cool when you come to Amsterdam next time!
Sep 08, 2020
At 24i we work hard and have fun - especially during IBC. In the 2nd episode of IBC On Location, Martijn van Horssen takes us to the Escape Club in Rembrandtplein, central Amsterdam, which is where we usually host the famous 24i IBC party. While we cannot party together this year, Martijn gives us a master class on how to eat Dutch bitterballen as well as surprising us with a one-time-only performance from the 24i and Amino band ... enjoy.
Jun 17, 2020
The streaming video market is fiercely competitive and heavily dominated by a few key players. However, over the past few months, smaller, niche services have witnessed phenomenal growth as people seek out new live and on-demand content to keep them entertained.
In episode 3 of the #In Conversation With… video series, Ryan Chanatry, General Manager of Topic, the new streaming video service from First Look Media, reveals how by complimenting vs competing with the streaming giants, the service is creating a strong following of "Culture Cravers" looking for new perspectives and viewing experiences.
Hosted by Craig Kierce and recorded from home, we hope you enjoy watching and invite you to check out Ryan's blog on the subject here.