While companies across the industry faced many challenges throughout 2020, we have all made great strides in meeting consumers’ changing needs. The overarching trends we have seen thus far aren’t necessarily surprising, though adoption was kicked into high gear forcing advertisers, media owners, and technology providers to adapt their plans.
In 2021, organizations will be able to shift from a reactive stance to a proactive one and purposefully advance their video investments. According to eMarketer, YouTube’s net CTV ad revenues accounted for 18.5% of US CTV ad spending in 2020. Hulu and Roku accounted for 24.2% and 9.1%, respectively. These facts prove that is an increasing trend in video advertising.
What are the trends in the video ad that will dominate this year?
Here’s a snapshot of the main trends to watch.
Streaming the new favorite
With new technology, it’s easier than ever to get what content consumers want. OTT video and CTV have bridged the gap between traditional cable and the internet. And the pandemic has just made more people embrace this streaming technology. The majority of viewers worldwide report that they like free, ad-supported video-on-demand (AVOD) content better than paying for an ad-free premium service.
OTT and CTV ad
The growing popularity of over-the-top (OTT) and consumer video-on-demand (CTV) is a real game-changer. While traditional TV viewership gradually declines, advertisers are shifting their budget to OTT faster than anticipated. As a result of this shift, it’s being projected that by 2025, viewers will see the commercial video on demand (AVOD) revenue worldwide reach twice the subscription VOD revenue level.
Device manufacturers enter the ad business.
We are entering a time when device manufacturers can use their influence in new ways. Most people already watch CTV on smart TVs, and manufacturers take advantage of this: They use it to launch new offerings for consumers and advertisers. The viewership of CTV is growing steadily in the US, Europe, and Australia, making smart TVs more popular. Manufacturers are responding by producing more intelligent features and advertising tools.
By 2021, we will have seen more video advertising sequencing. Video remarketing abilities have been available on Facebook and YouTube (Google) advertising networks for years. This past year, LinkedIn opened up this functionality to all advertisers. If a consumer watches a certain percentage of your video, it means they can be added to an advertising audience. This tactic allows you to create “video ad funnels” where viewers can be served up sequential ads related to the video as part of a specific audience profile. This means we will see more story-based content to create a clean, consistent brand experience from video to video.
Data-driven campaigns take priority.
Audience data will slowly start becoming more important in the video advertising industry. Data accuracy’s continued role in ensuring consumer trust will be one of the most critical brands’ priorities. Measuring campaign effectiveness and providing tangible outcomes is a must in this case.
Programmatic buying options.
Even though advertisers used to separate their cable TV ads and OTT ads, they are now increasingly merging. Companies are pushing into automated buying and programmatic guarantees because it offers enormous efficiencies and helps them reach specific audience segments with data.
Increased focus on premium partnerships.
Last year reminded us of the need to build more resilient supply chains. The concepts of demand and supply chain optimization aren’t new, but they have taken center stage because of the unpredictable market changes caused by the Covid-19 pandemic.