Consumers are changing how they interact with media—what does that mean for advertisers, and how are they responding? MediaRadar is here to help you navigate ad sales with the latest tips and data.
Though linear TV still makes up over half of viewing time, time spent streaming hit an all-time high in December.
Advertising-based platforms have a huge opportunity to bring in more revenue. Analysts expect a 50% jump in OTT ad spending between 2021 and 2022 (from $8 billion to $12 billion.)
It’s one thing to know how much advertisers are spending. It’s another to know who’s spending and why. This is why we’ve compiled an OTT & TV Anywhere 2021 Trend Report.
Our upcoming trend report on OTT Insights from 2021 will highlight which ad-supported streaming services are winning in ad sales, what industries drive ad sales, trends in ad load and duration and more.
Ahead of the full report, we put together the most critical insights for media companies seeking to win more sales. Plus, we’ll dig deep into the strategies of the most successful ad-based streaming platforms on our blog starting next month.
Top streaming services rely on ad revenue from the same industries
Advertising-based video on demand (AVOD) and hybrid platforms (channels that make money from a mix of advertisements and subscriptions) have a lot to offer advertisers.
Audiences are increasing their viewing time on streaming platforms, and unlike linear TV, streaming platforms can offer programmatic and interactive advertising features. These innovative ad tech capabilities are more data-driven and measurable than linear TV offerings.
On top of these benefits, streaming audiences are more tolerant of the ads they are served. According to SpotX, 60% of American connected TV viewers prefer ad-supported content compared to paid ad-free services.
The top ad-supported streaming services include:
- Discovery+
- HBO Max
- Hulu
- Paramount+
- Peacock
Across this set of advertisers, we found these companies serving almost 500 thousand ads in the second half of 2021. Most of these advertisements can be categorized across five major categories.
60-72% of advertisements placed on OTT channels fall within the following categories:
- Media & Entertainment
- Retail
- Technology
- Financial & Real Estate
- Pharma
Why is this important? The top 5 OTT channels are all dependent on the same 5 industry categories.
However, some channels are better at winning sales from certain categories than others. For example, Discovery+ wins over retail brands more than any other brand, while HBO Max has found a sweet spot with financial and insurance brands.
A consistent trend we’ve seen is the decrease in house ads across channels. After these younger platforms launched, we saw them placing ads for their own programming 3-10% of the time.
Over time, this portion of house ad sales has become smaller, indicating that channels are getting better selling ad space externally.
Ad load and duration trends reveal experimentation
Even though these businesses are improving their ad sales numbers, they are still navigating a new market that doesn’t have standard practices.
Each platform has different ad load and duration patterns.
The ad load of Paramount+ is twice as long as the nearest competitor, while Peacock & HBO Max have the lightest ad loads.
Most video ads on these platforms are either 15 seconds or 30 seconds. But each platform has a unique way to split up these ad slots.
As platforms continue to grow in sales numbers, while finding the right balance of consumer tolerance and revenue, the industry will change quickly.
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