Mobile, OTT explosion drive demand for monetization tech

Published February 5th, 2019

Research from Frost & Sullivan has revealed that the explosion of OTT and user generated (UG) video content in the current multiscreen environment is creating strong demand for monetization technologies among both content owners and advertisers.

The F&S report, Global Online Video Advertising Market, Forecast to 2023, calculates that the targetability, personalization capabilities and interactivity offered by online video advertising solutions will drive the $30 billion market toward $120 billion by 2023.

The study also notes that the rapidly expanding viewer pool of live/linear and video-on-demand (VOD) content such as sports and special events has spawned a large market for seamless ad delivery, with elements such as dynamic ad insertion, that is consistent across devices and platforms. It also says that cloud- powered server-side ad insertion will emerge the dominant technology as it meets stringent monetization and user experience demands.

“By the end of the forecast period, video ads are forecast to account for more than 20% ofall digital ad spending,” said Aravindh Vanchesan, digital transformation industry analyst at Frost & Sullivan and author of Global Online Video Advertising Market, Forecast to 2023.

“Mobile video ad spending, in particular, will account for 75% of digital video ad spend as advertisers, media companies, and publishers follow audiences away from traditional TV and desktop. While ad insertion technologies are finding high uptake among advertisers, ad blockers also are becoming common on both desktop and mobile platforms. This is resulting in lower completion rates and lost revenue opportunities…Besides, as the competition continues to intensify, there will be a need to prioritize market education and awareness initiatives to communicate vendors’ competitive strengths in capabilities.”

As the online video advertising market becomes increasingly populated, participants can stay competitive by seizing the growth opportunities presented by:

* Offering smooth, scalable, high-quality live video experiences optimized for
every device.
* Delivering targeted ads to millions of concurrent viewers.
* Engaging in merger & acquisition activity with regional, niche vendors, especially for ad tech solutions.
* Embedding products and services with personalization and customization capabilities such as user video profiles, recommendations, and localization for device and region.
* Ensuring scalability of DAI solutions, particularly for live video events.