Ad Streaming Already Competes With Traditional Television And Takes Advertisers Away

In the last VoD service I tried, I didn’t wait a couple of days to unsubscribe from the trial period. In the past, it is likely that I would have even forgotten to do so and ended up paying for the first month of service. It was something that in the past had happened to me not once but several times and not only to me but also to several users in my circle.

However, now I no longer let that happen. VoD platforms are analyzed much faster and if something does not seem worthwhile, I delete it. These services must convince in terms of catalog, yes, but also in terms of price. It is much more likely that we will judge your catalog harshly faster, but also that we will be much more reluctant to pay for the service, even if it costs 4.99 euros (the price with which some platforms are entering the market right now) .

Consumers have reached levels of subscription depletion and this is especially true in the streaming market, where it is beginning to feel that there is too much. If companies want consumers to pay, they must have a powerful catalog or a very attractive name.

Disney has managed to become a success, but it has done so by pulling on the “Baby Yoda” boom but also on its content pool, very popular and highly desirable by consumers. For other companies, getting around that brake is very difficult, unless they opt for new formats for accessing content.

And that’s where a major change could be about to occur. We could be approaching the golden age of ad streaming. It is not the first time that analysts have indicated this and that they have released forecasts of how much money this market could move.

The ad boom
The last of the analysis comes from Digiday and, as the British media points out, the big change could occur this year. It should not only be taken into account that streaming has been growing remarkably in recent years and that television is already being watched from you to you, but also that the coronavirus crisis has accelerated the consumption of this type of content.

That is, the confinement processes and the social distance recommendations have left consumers in their homes much longer and those hours have been filled with the consumption of on-demand content. This has accelerated the streaming market and could boost that of linked advertising. As an industry executive explains to the outlet, in this upfront season, which took place in recent weeks, streaming already took 25 to 30% of ad spend. In the past year, it was 10-20%.

Compete with TV
Streaming with ads is already in direct competition with traditional television and the televisions themselves are beginning not only to sell advertising in linear broadcasts but also in what will happen in on-demand broadcasts in apps and content access services. The TVs have started to be more dynamic and attractive with the prices of these ads, which has increased their pull among advertisers.

If to that is added that, despite the growth of television in audiences during the coronavirus crisis, television audiences are falling, the situation is better understood. Advertisers are more open to streaming because they still need to reach audiences, but they no longer have insurance to get it with TV.

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