Analysts have been forecasting a post-boom slowdown for subscription streamers, after many consumers were converted to SVOD a year early because of lockdown. With SVOD stacking also reaching a ceiling for some household budgets, the focus now is on sustaining strong growth rates. More and deeper partnerships between streamers and platforms, including Pay TV, are considered the answer. These should include discounts – and maybe significant discounts if you take several subscription streamers in the bundle.
The latest figures from research companies including Omdia, Ampere Analysis, Parks Associates and Digital TV Research show the growing power of SVOD and AVOD and the continued decline of Pay TV in North America. Among the highlights: U.S. spend on OTT services has doubled in two years; Global SVOD subscriptions will hit 1.6bn by 2025; Disney+ will be the second largest SVOD in Western Europe by 2026 with 55m paying subscribers; North American AVOD revenues will triple by 2026.
Putting an end to audience under-delivery and make-goods, and over-delivery with its wasted inventory
Audience-based buying allows broadcasters to guarantee a total audience rather than particular ad spots. Once adopted, it enables dynamic inventory re-allocations based on overnight audience figures or STB return path data to ensure no campaign over-delivers or under-delivers. xG GamePlan from Imagine Communications harnesses the cloud to optimise this inventory management, reducing the likelihood of make-goods and the costly admin that goes with them, and minimising the chance of audience over-delivery and wasted inventory that could have been sold to another advertiser or used for content promotion. Nine Network in Australia demonstrates the full power of this solution in one of the best examples of how inventory planning can be revolutionised.
The cost for Pay TV operators deploying addressable TV advertising is one-tenth of what it was a few years ago and it should now be affordable for even small service providers, whether they collaborate with other operators or work alone. Widespread support for all STB types is one of the building blocks for scale, and goes on the ‘Done’ checklist. According to one ad-tech leader, the single biggest challenge now is getting broadcasters onboard so we can ramp up addressable inventory.
There is no doubt we are at the tipping point in the long transition from all-broadcast to all-streaming and Videoscape Europe, the thought-leadership event for premium streamed television, is focused on what this means for Media & Entertainment strategies. The conference is focused on digital transition, seizing the global growth opportunity, next-generation content discovery and engagement, and how we successfully replicate the free-to-view model in the streaming space. Confirmed speakers include NBCU, ITV, Struum, Twitter, ViacomCBS Networks International, Revry, Rakuten Advertising and Foxxum.
Imagine an SVOD service that was called ‘Not Netflix, Amazon or Disney, but everything else’ and hosted content from the next 300 most important SVOD services in a market, with the ambition of being the fourth VOD destination everyone goes to. Your monthly subscription is converted to credits that can be used to view content assets from any of the partners. That, in a nutshell, is Struum, a service that launches in the U.S. this spring with nearly 40 SVOD partners already signed up. And the company intends to go global.
Media researcher Professor Karen Nelson-Field tells Michaela Jefferson about her new attention-focused media planning tool and why it could transform the way media is bought and sold. AttentionTrace, shuns "meaningless and non-universal" metrics such as shares, likes, followers and even OTS. Instead, it demonstrates active and passive attention and normalises this complex data so different platforms or dayparts, etc. can be compared.
Marcien Jenckes, President, Advertising at Comcast Cable, has highlighted the impact of Covid and lockdowns on how we shop, how we interact with brands and how we consume media. In all cases, data and personalisation play a bigger role than ever, and with television riding high after record audiences in 2020, Jenckes believes now is the moment to capitalise on these trends by growing the market for addressable TV advertising.
The Future of TV Advertising Global returns on December 8, with the unification of television and digital, connected TV, addressable TV advertising, identity and measurement among the key themes at the three-day conference. In Part One of our event preview, we highlight some of the world-class innovation being showcased by the sell-side, what the buyers are thinking, some of the up-to-date advertising research and fresh thinking that is on the agenda, and the sessions devoted to how we scale addressable TV advertising.
GDPR and the demise of third-party cookies is making audience-based targeting harder, for the industry as a whole. Comscore believes it has the solution, using opted-in panels to understand consumer behaviour and buying signals and then matching this against known media consumption with very granular contextual detail. Advertisers with a target audience can find robust ‘lookalikes’ and forecast where they can find them, buying the media directly or programmatically based on context.