LOS GATOS, Calif. – In the SpotX Vision report for 2020, it cited data, which was gathered by Samsung, that 61% of streamers prefer to use free ad-supported services or advertising-based video on demand (AVOD), while 40% of the streaming time is used for AVOD services.
Cord-cutting has become more and more popular in recent years, but it is still evolving; and 15 industry experts are trying to understand the current video landscape to help predict where streaming will look like this coming 2020.
Based on the SpotX 2020 Vision report, programmatic video ads are expected to provide benefits to both sellers and buyers. With around $4 out of the $5 expense paid on programmatic ads are going towards private channels, ad deals are expected to grow even more in 2020.
For cord-cutters, choosing ad-supported services allows them to get a cheaper monthly subscription fee without compromising their access to premium content in the industry.
According to the Senior Manager of Programmatic Platform at Roku, Dylan Moorhead, they believe that over time, TV ads are going to be more targeted and will also be traded frequently and programmatically. He said that it is possible since more companies are starting to shift the focus of their budgets towards OTT. Otherwise, brands might risk failing to take advantage of a massive portion of their existing customers who are no longer using linear services, Moorhead said.
The Vizio Senior Manager of Business Development and Advertising, Nyma Quidwai, also commented on the issue, saying that they are looking towards ways for them to collect the first-party data from their screens, how to repackage it in their media and use it for inventory where they can target users based on the data they have. She also said that Vizio is also looking towards providing more actionable campaign findings to their customers.
Services in the streaming world who were able to build strategic partnerships while they continue to works towards improving their service’s overall customer experience are most likely going to take the upcoming year by storm.