Is streaming going to be the next goose that lays the golden eggs of advertising? When a new medium emerges or a new platform to access content does so, it quickly becomes an obsession for brands and, above all, it begins to be exploited with advertising.In the case of streaming, however, its emergence knocked brands out of the game. The platforms that were starting up and that were conquering audiences were doing it without ads. Entering that environment, in which audiences were consuming content and more content, seemed very complicated.
However, the subscription bill – the fact that consumers are fed up with paying for subscriptions and not wanting to pay more money for new services – has opened the door for a return in advertising. The systems that the large US television networks are launching are already with advertisements and even players that had stayed away from advertising, such as HBO , have already presented models with lower prices and advertisements.In Europe, AVoDs, ad supported video on demand systems, are still in short supply. In the United States, they are the great upward trend, setting the path that will possibly be followed in a long time also on this side of the Atlantic.
The growth of the AVoD market Botswana Email List is to be expected. This is demonstrated, for example, by your spending intention. It is expected that overall spending on these platforms in series and movies up 144% between 2020 and 2026. These platforms will reach an investment of 66 million dollars, about 54,100 million euros in content. If AVoD platforms are going to spend more money on content, it is because they will also have better income. In markets such as India or the United States, revenues are expected to triple between 2020 and 2026.
Therefore, advertisers will spend more money on streaming advertising, or at least that is what they plan and what they are open for. Of course, for this to take hold, the industry itself will have to be careful. Right now, although advertisers want to invest in AVoD, they are in a tug of war with the platforms for their prices.The war is taking place in the US, the market that opens this trend. The television giants have just opened their own AVoD platforms and already believe that these will become the great alternative to traditional television. That is, they are fully aware of how audiences are changing and the important role that ad streaming will play in their future.
Perhaps this vision of AVoD as something so important is what has led them to where it is. They are asking for their streaming advertising spaces for figures equivalent to those of prime time, as Variety has learned . For advertisers, the amounts are too high and are not.Unilever VP of Media and Digital Engagement Rob Master is one of the sources the outlet has spoken to. “I think we’re definitely like ‘wow,'” he told Variety . Advertisers want to get into the AVoD and believe that it has potential, but they do not believe that it is yet in a mature phase that allows it to ask for such high amounts of money. Geoffrey Calabrese, Omnicom’s chief investment officer in North America, says it is an “opportunity” but also that prices are “a bit inflated at this point.”
The platforms are using as a benchmark the success of content consumption during the year of the covid, when consumers were more than ever at home and more than ever watching content on the network.Networks want streaming revenue to cover everything they are losing in TV revenue, which is leading to very high CPMs. willing to fork out those figures. But for advertisers to go through the hoop they are going to have to adjust how they do things and possibly lower rates.