Ad Spend on Video On Demand is Rising
As a substantial traffic segment makes its way to video content available on streaming services and video platforms, advertisers are spending more on VOD services than traditional media formats year on year. Ad spend on video on demand is rising! Are you ready for it?
While some platforms remain ad-free and rely on subscriptions for revenue, ad-funded platforms like Hulu and HBO Now are enjoying an increase in revenue thanks to new budgets directed to their ad-supported platforms.
Users all across the United States have made the decision to cancel their cable subscriptions. In fact, over 60 million households own connected TV sets, allowing them access platforms like Amazon Prime without any external setups or dishes.
The Adtech sector is entering a new stage, where new privacy laws, a cookie-less world, and a decline in the traditional ad market are setting the stage for new formats.
Moreover, digital video content consumption is skyrocketing, which makes it an incredibly fertile ground for pre-roll and mid-roll ads for large scale publishers.
Online video is transforming media consumption habits globally, bringing with it a whirlwind of change in user behavior, where high-quality content is available whenever, wherever in a single tap.
In 2020, the average person spent 84 minutes a day watching videos online. This duration will rise to about 100 minutes this year. Advertisers are also set to spend heavily on video as the world continues to emerge from the COVID-19 lockdowns and things are looking more certain than they did before.
Inventory is in high demand and to be able to capitalize on it effectively, publishers need to supplement their sites with the right video solution, which needs to be fast, flexible, and maximize revenue generation opportunities.
To make things even more transparent, we see social media giants investing heavily and improving their video products. Good examples of this trend are Facebook videos and Instagram TV which experienced a range of improvements since its launch.
Will you seize all the monetization opportunities the increase in ad spend on video on demand is sending your way this year? If your strategy is still feeling shaky, reach out to our experts today! They’ll be thrilled to work with you and make sure you never miss a single monetization opportunity.