AVOD's Striking Impact on CTV Advertisers and Streamers

Unless noted otherwise all data in this infographic is from the quotPublicis Media ampamp Verizon Media Capitalizing on the CTV Opportunityquot study April 2021 amp160First things first Steaming growth has gone exponentialStreaming adoption climbed 48 in just the three months between Q3 and Q4 last year and the industry is responding with a new AVOD or SVOD service announced seemingly every month Verizon Media internal data March 2021However new services mean more costs and these streamers are reaching a tipping point around subscription price fatigue Half of users share logins to keep costs down both for themselves and othersAVOD grows to fill a needWhile the vast majority of viewers regularly turn to premium adfree streaming like Netflix or Amazon Prime Video TV ads are still hitting most viewers Seventyseven percent of viewers see ads across cable live or AVOD services and 66 see ads via AVOD services of any kindAffordability is the primary reason why viewers try paid or free AVOD services And AVOD particularly Paid AVOD is delivering value with 70 saying there is no difference in quotprice for valuequot when comparing SVOD to Paid AVODWhat39s holding back AVOD at this point Bad ad experiencesThirtynine percent of AVOD subscribers are so irritated by advertising experiences that they39ve considered upgrading to an adfree version Another 23 actually have upgraded typically to the adfree version of Hulu because they were bothered by the ad experience The risk here is AVOD services without an adfree upgrade option risk losing their viewers to other services that irritate viewers lessWhat could be so irksome about CTV ads Here are some of the most common complaints60 say commercial breaks are too long60 feel there are too many commercial breaks58 see the exact same ad play over and over in the same or consecutive shows53 dislike commercials that occur in the middle of the action where there isn39t a natural break52 blame AVOD commercials that occur right at cliffhanger momentsHow can publishers improve the viewing experienceImproving the ad experience will make your advertising customers more successful AVOD providers can look to cable TV as a guide as 54 mentioned the cable TV ad experience as the benchmark for AVOD ad experiencesAd experiences that qualify as quotBetter Experiencesquot include approaches that give viewers more control countdown clocks and ads that are entertaining or personally relevantFortunately there are multiple pathways publishers can explore to improve the ad experienceOptimize your waterfall setup Unified auction solutions and multibidding support can increase the pool of demand for your ad slots helping reduce the frequency of no ads or repetitive adsIncrease relevance Content Object is an OpenRTB attribute that helps buyers better understand where their ads will run and increases the likelihood that you39ll be able to deliver more relevant ad experiences to your viewers Publishers should make sure to work with an SSP that supports Content Object and has experience selling it through to buyersExperiment with ad pod placement and structure Too often the industry has defaulted to ad breaks consisting of 35 ads placed every 15 minutes This is an area where CTV could even improve upon the Cable TV experience quotBetter ad experiencequot suggestions included skippable ads fewer ad breaks and ad breaks placed in different parts of the content stream all of which are aspects that publishers can control and modify to find the right balance between revenue and the optimal user experienceStraight talk to advertisersAdvertisers may need your help adjusting to a more complicated ecosystem Here are a few thoughtstarters for that conversationExpand your audience If you39re still solely focused on reaching viewers via traditional linear TV you39re missing out on opportunities to reach your audienceKeep ad quality high The ad experience matters but so does the substance of the ad itself Twothirds of the CTV audience prefers ads that are funny or entertaining The creative process is just as important as it is on TVDiversify your ad creative While publishers have work to do to stop the same ad from running repeatedly advertisers may want to account for this by ensuring they39re submitting more creative variations of their ads in the event they39re appearing in front of viewers several times an hourDemand relevancy If you39re not using Content Object to influence your targeting you39re missing out Content Object provides information about the content in which your ad runs and can help you deliver more relevant ads to more relevant viewers Ensure the SSP you39re buying from supports this feature and can help you find the right opportunitiesThe future of CTV and AVOD is exciting even with its current imperfections and growing pains We are in a phase where advertisers and publishers have opportunities to not only fix the pain points but to also reimagine what a quotgreatquot viewing experience can be even going beyond the gold standard set by cable TV Working with strong technology partners who can embrace and support a spirit of experimentation can help you figure out the best possible solutionsClick the social buttons above or below to share this content with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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AVOD's Striking Impact on CTV Advertisers and Streamers

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Anna Hitchins

"About That with Carl Mayer": Involved Media Connected Audience Fall 2024 Report (Episode 5) - By Carl Mayer

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AVOD's Striking Impact on CTV Advertisers and Streamers

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