Streaming has seen rapid growth in the past two years, with services such as Netflix and Disney+ now fully established in the mainstream. But with competition rising and TV advertising becoming more addressable and interactive, the market is entering its next phase of maturity.
Here are some of the key developments marketers should expect to see in the coming year.
Technology will bridge the gap between TV and ecommerce
Technologies such as QR codes will be used in advertisements to create shoppable ads, which bring advertising and ecommerce into a single touchpoint. Shoppable ads will enable ecommerce advertisers to create a seamless, measurable journey from the point of viewing an advertisement through to purchasing the product.
This will provide brands with the opportunity to create direct response-focused campaigns, which will not only drive immediate action where the impact is easily measurable but also drive brand metrics. The interactive nature of shoppable ads could introduce brands to a future of TV advertising that is less passive for audiences and allows them to interact directly with the content on their TV screen.
Definition of TV will continue to broaden
The definition of TV is constantly evolving and broadening. With the rise of over-the-top (OTT) streaming platforms such as Twitch, YouTube and Facebook, how we choose to watch content is becoming increasingly varied. The implementation of OTT streaming and other content platforms such as YouTube within connected TV platforms is changing the perception of TV viewing and how this is defined. Viewing across numerous forms of content on the TV screen, and TV content on numerous devices, means the TV ecosystem is no longer easy to define or navigate.
We will see continued proliferation of new platforms
This will mirror what we have seen in the digital world, with many new addressable ready platforms arising, which will strengthen the overall position of the streaming industry. As a result, there will likely be a shift in mindset from brands, leaning towards data-driven audience targeting solutions alongside more accurate forms of campaign measurement.
SVOD subscriber growth will begin to plateau
The subscription model is losing its power to drive long-term growth, and subscriber growth will likely plateau. This is because competition both to win customers and to license content has grown, while prices are increasing amongst some SVOD platforms.
In response, expect business models to diversify further in 2022, as the lure of ad revenue strengthens along with the opportunity to provide more diverse audiences access streaming platforms. The SVOD market is expected to grow by 52% by 2025, However 51% of all the revenue currently made in the OTT market comes from ad-funded video-on-demand (AVOD), versus 40% from subscription video-on-demand (SVOD).
Removal of third-party cookies may drive advertisers towards TV
Targeting and measurement will increasingly become more difficult in a cookie-less world. In an environment where brands want to address targeted audiences who can no longer be found through ‘traditional’ digital channels, one way of hitting them could be with addressable TV.
Digital marketers now also have to look at targeting and measurement solutions based around their own first-party data, and there will likely be more of an appetite for addressable campaigns that use future-ready data partnerships to supplement that. This shift in data privacy may encourage more advertisers to move spend away from digital towards other channels, such as addressable TV and OOH.