In the report, SpotX cites data from Samsung which says that 61% of streamers watch advertising-based video on demand (AVOD) while 40% of streaming time is AVOD.
Programmatic video ads will continue to benefit both buyers and sellers, the study shows. Ad deals will continue to grow through 2020, with $4 out of every $5 spent on programmatic ads going through private channels. For streamers, choosing these ad-supported services means a lower monthly subscription fee for premium content.
“Over time, we believe that TV advertising will become more targeted and frequently traded programmatically as brands shift their budgets into OTT, or risk missing a large portion of their audience who are no longer found on linear,” says Dylan Moorhead, Sr. Manager Programmatic Platform at Roku.
Advertisers are expected to see the increasing value in investing in ads on streaming services. With the immense amount of data available, streaming services can pinpoint the type of advertising that will best resonate with viewers, while advertisers will more easily find ways to reach their target audiences.
“We’re looking now at how to collect first-party data across screens, repackage it across our own media and then offer inventory where we can target users against this data and provide actionable campaign findings,” says Nyma Quidwai, Sr. Manager of Business Development & Advertising at Vizio.
Those services that find ways to build strategic partnerships while continuing to focus on improving the customer experience are most likely to see growth in the upcoming year.
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