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DCN Members can access the video of today’s virtual event – a review of the study’s topline findings here.
Digital media companies recognize the important role of subscription-based models in monetizing content effectively. Understanding consumer behavior to support this business model is crucial for attracting and retaining subscribers, optimizing user experiences, and staying competitive. DCN’s new consumer subscription study: Digital Media Subscription Tracking offers a deep dive into consumer subscription behavior and covers a wide range of digital subscription services, including SVOD, MVPD, vMVPD, digital newspapers, magazines, and audio – and usage metrics for AVOD and FAST services. The report is DCN members only, please login or register to access (on desktop see top right corner, on mobile the top center).
The Q1 2023 report is available to all DCN members; all subsequent waves will be exclusive to DCN Benchmark participants as part of their Benchmark’s suite of reports offering timely market intelligence each quarter.
This quarterly research, conducted with Screen Engine/ASI, will identify trends and track market penetration, shifts, and growth in the rapidly changing media landscape. The first wave, Q1 2023, surveyed 1,893 adults 18+, representing the U.S. Census population by age, gender, race, and ethnicity. The sample was online-only and represented approximately 89% of U.S. households and adults 18+ with access to the Internet.
Category penetration
One of the study’s key findings is that the U.S. had more than one billion paid subscriptions in Q1 2023 across the digital media landscape – SVOD, MVPD, vMVPD, digital newspapers, magazines, and audio. This indicates that almost all online U.S. households (97%) subscribe to one or more digital media subscription services. On average, households subscribe to approximately nine different pay services when combining all seven digital media services measured in this study.
The SVOD service category has the most subscribers, with nearly a 60% share of total pay subscriptions, followed by MVPDs and vMVPDs, digital newspapers, digital magazines, and digital audio services. The study also indicates that 29% of all subscribers plan to add one or more services next quarter, while 26% plan to cancel one or more, with MVPDs potentially continuing to decline and vMVPD subscriptions potentially increasing.
The study also highlights that free, “ad-only” AVOD and FAST services will continue attracting more traditional media consumers, who tend to be older and watch more linear TV. SVOD with ads and AVOD services will provide a much-needed incremental and growing revenue stream, especially as growth for pay-only services that don’t carry ads slow their subscriber penetration.
Demographic appeal
The demographic profile of digital media service subscribers shows that the heaviest concentration of subscribers for all services combined are slightly younger (P18-34), more male (M18-34), more diverse (Hispanic and African American), family-oriented (parents with children under 18), higher income (households with income $150K+) and slightly more educated. This demographic profile is extremely attractive for advertisers, making the launch of more digital “hybrid” (pay + ads) services likely.
The Digital Media Subscription Tracking study offers digital content companies essential consumer research to support new revenue models and pricing strategies to stay competitive and retain their subscribers.
Please reach out to me at rande@digitalcontentnext.org with questions about the Digital Media Subscription Tracking study.
Full research report for DCN members only. Register to or login to download (on desktop see top right corner of page, on mobile the top center). Download buttons will appear at the top and bottom of the page.
In recent years, the traditional television and streaming video industries have undergone significant transformation due to the expansion of digital platforms and changing consumer preferences. To gain insights into these changes, Adtaxi conducted an extensive study, 2023 TV & Video Streaming Survey,exploring the evolving landscape of TV and video streaming with more than 1,000 U.S. adults.
According to the survey, streaming services have solidified their position as the primary mode of video consumption for most viewers. More than 80% of respondents report subscribing to at least one streaming platform, with Netflix leading the pack. The convenience of on-demand content, the wide variety of choices, and the absence of advertisements were cited as the primary reasons for the popularity of streaming services.
Preferred choice
Streaming services are the preferred choice of video consumption for a significant portion of adults, surpassing cable (31%) and broadcast (11%) options. Approximately 42% of adults now opt for streaming services, with 35% accessing streaming content through their TV sets and 7% using personal devices. Roku predicts that this trend will persist and that an estimated 50% of all U.S. households will cut the cord by 2024.
Cord-cutting continues
The research also reveals that the cord-cutting trend shows no signs of abating. A staggering 75% of respondents report that they canceled their traditional cable or satellite TV subscriptions in favor of streaming services. The flexibility, cost-effectiveness, and customizable nature of streaming platforms have made them attractive alternatives to traditional TV providers.
Original content and exclusive deals
In the battle for viewership dominance, original content has emerged as a key differentiator among streaming services. The Adtaxi survey found that 68% of respondents subscribed to a streaming platform specifically for its original programming. Netflix, Amazon Prime Video, and Disney+ were identified as the top platforms known for their high-quality original shows and movies.
Moreover, exclusive deals and partnerships have become important strategies for streaming services to attract subscribers. This includes securing exclusive rights to popular sports events, partnering with renowned creators, and signing contracts with top-tier production companies. These tactics not only help streaming platforms stand out but also provide viewers with unique and diverse content options.
The battle of ad-supported streaming
While subscription-based streaming services dominate the market, the survey highlights the growing popularity of ad-supported streaming platforms. Almost 40% of respondents report using ad-supported services, indicating a willingness to endure ads in exchange for free or lower-cost access to content. This trend should encourage more advertisers to invest in digital advertising within the streaming space, presenting new opportunities for brands to reach their target audiences.
The 2023 TV & Video Streaming Survey sheds light on the ever-evolving landscape of entertainment consumption. The dominance of streaming services, the ongoing cord-cutting trend, the importance of original content, and the rise of ad-supported platforms all point toward a significant shift in viewer preferences and behavior. As the industry continues to evolve, it will be interesting to see how streaming services adapt to meet the demands of their subscribers while providing a seamless and personalized entertainment experience. The future of TV and video streaming looks promising, offering consumers a wide range of choices and content options that cater to the consumer’s interests and preferences.
Streaming video has seen explosive growth and isn’t yet showing any signs of slowing down. As audience habits change and evolve, are advertisers and media platforms prepared to take full advantage of the new paradigm? Whether it’s the shift from third to first-party data or ad formats designed uniquely for the streaming experience, there are plenty of cutting-edge trends and technologies that advertisers would do well to understand – and embrace.
Streaming audiences are booming
One of the biggest trends in streaming video is the rise of streaming-first networks. These networks, such as Netflix, Hulu, and Amazon Prime, often produce their own content and offer it exclusively on their streaming platforms. This model has proven to be successful, with many streaming-first networks producing critically acclaimed shows and movies that have gained a loyal following.
According to recent data, at least 85% of US households are subscribed to at least one video streaming service. The popularity of streaming-first networks has disrupted the traditional TV model, which relies on ad-supported cable and satellite networks. As more people switch to streaming platforms, advertisers are having to adapt to the new landscape and find ways to reach their audiences through these platforms.
Netflix, the world’s leading streaming service, for a long time publicly opposed advertising and relied on a subscription-only model. However, in 2022, CEO Reed Hastings announced that the company was opening the door to advertising, signaling a sea change. Hastings cited the success of Hulu and others in monetizing their streaming platforms through advertising. And, to back this up, a survey by MAGNA found that in 2021, U.S, linear TV ad spend is projected to decrease by 7.5%, while connected TV ad spend is projected to increase by 36.5%.
Self-serve advertising: targeted and brand-safe
Many streaming platforms, including Roku and Hulu, offer self-serve advertising options that allow brands to create and target their own ad campaigns. This gives advertisers more control over their campaigns and allows them to reach specific audiences in a brand-safe way. Self-serve is considered an effective compromise between the requirements of brand safety and scale; a system that is both automated and tightly controlled by the publisher.
Through self-serve advertising, brands can choose the ad format, ad placement, and target audience based on first-party data. Advertisers can also set their own budget and optimize their campaigns based on real-time performance data. Self-serve advertising platforms are built on the availability of first-party audience data.
First-party data: the key to targeting and personalization
Another trend in streaming video is the use of first-party data. Streaming platforms collect data on their users – including what they watch, when they watch it, and on what device. This data can be used to create more targeted and personalized ad campaigns. For example, if a streaming platform knows that a particular user is a fan of action movies, it can serve them ads for action movies or related products.
First-party data can also help advertisers understand their target audience better. By analyzing user behavior and preferences, advertisers can gain insights into what types of ads are most effective and adjust their campaigns accordingly. For example, if data shows that users are more likely to engage with ads that feature humor, advertisers can create ads that use humor to capture the viewer’s attention.
Trust builds strong relationships
In addition to self-serve advertising and first-party data, it’s important for advertisers to consider the relationship between viewers, streaming brands, and trusted advertisers. As streaming platforms have become more popular, they have also become an important source of trust for many viewers. This means that advertisers who partner with trusted streaming brands and create ads that align with their values and aesthetics are more likely to be successful.
Brands that are perceived as intrusive or irrelevant can quickly lose viewers’ trust and negatively impact the reputation of the streaming platform. To build and maintain trust with viewers, advertisers must focus on creating compelling, authentic, and relevant ad content that resonates with their audience.
One way to achieve this is through sponsored content. Streaming platforms increasingly offer sponsored content as a way for brands to reach audiences in a non-intrusive way. Sponsored content can take the form of branded entertainment, product placement, or native advertising. By partnering with streaming platforms and creating sponsored content that aligns with the platform’s values and aesthetics, advertisers can reach audiences in a more organic and engaging way.
Another important factor in building trust is transparency. Advertisers must be transparent about how they collect and use data, as well as how they target and deliver ads. By being transparent, advertisers can build trust with viewers and create a more positive advertising experience.
Connecting the dots with CTV
In addition to these trends, another important factor for advertisers to consider is the growing importance of connected TV (CTV). CTV refers to televisions that are connected to the internet, allowing viewers to access streaming content directly on their TVs. Already, a full 80% of U.S. households have access to a connected TV. With CTV viewership on the rise, advertisers have the opportunity to reach audiences on a larger screen and create more immersive and engaging ad experiences. Advertisers can also use CTV to target specific households and individuals, based on first-party data and other targeting methods.
As the streaming video and CTV landscape continues to evolve, advertisers must navigate new challenges, such as ad fraud. Ad fraud refers to the practice of generating false ad impressions or clicks to defraud advertisers. Advertisers can work with media platforms and ad tech partners to implement fraud prevention measures and ensure their ad spend is used effectively.
Closing thoughts
One simple saying appropriately describes the advertising impact of streaming video: the medium is the message. Streaming video isn’t just linear in a new, on-demand format. It’s a fundamental shift in the way that viewers experience media, create relationships with brands, and ultimately make decisions as consumers. There are a host of new challenges and opportunities, all of which will impact advertisers now and in the future.
The best way for advertisers and publishers to adapt to streaming video is to embrace it. And it will help to seek out expert partners to help navigate these new waters. In many ways, we will need to forget what we think we know about video media and open our minds to a new and exciting reality that is more audience-focused, personalized, and fast-changing than ever before.
The largest TV networks and media companies are busy presenting their upcoming programming and ad inventory for the year ahead. A large portion of advertising budgets are typically allocated to TV advertising, so advertising shifts among top brands will impact the whole marketplace. In this article, we’ll explore some of the latest advertising trends and insights to keep in mind during the Upfronts, NewFronts, and beyond.
1. Digital takes the top spot
In 2022, nearly $144 billion was invested in digital, print and TV advertising. While TV still makes up 41% of total ad spend, digital was the top ranking format making up 47% of all buys. Over $68 billion was allocated to digital formats. These formats include display, online video, native, and paid social among other formats. This marks an opportunity for continued growth in digital media sales.
2. Top categories investing in TV are also top buyers of digital
Four out of the top five categories buying TV ads are top digital buyers as well. Not surprisingly big spenders from finance, media & entertainment, retail, and tech brands drive digital ad sales. TV investment for these, with the exception of media and entertainment, is down YoY.
However, each of these categories are up YoY in digital ad sales. Their combined digital investment still exceeds $36.6 billion and made up 53% of all digital spend. This represents a shift in the market towards digital advertising among top segments.
3. Few advertisers entering the market bought national TV spots
Only 1% of advertisers entering the market bought national TV spots. Despite looming recession concerns, MediaRadar observed 52k new advertisers (nearly 80k brands) entered the market in the second half of 2022. Not all of these advertisers purchased TV spots (530), but over 36k invested in digital display, video advertising and other digital formats.
4. Online video advertising is up
Online video advertising is increasingly more important to advertisers as it rose 86% YoY. A study by Hubspot says, “91% of marketers surveyed say they find video important to their advertising mix and 92% of them say online video produces a high ROI.” These feelings are likely contributing to the continued growth of video ad sales across media formats.
MediaRadar observed 31.1k advertisers spend an estimated $28.2b in video advertising during 2022. Top three categories advertised via online video during 2022: software ($1.9 billion), pharma ($1.4 billion), and film promotion ($1.4 billion). Combined spend nearly reached $4.8 billion, this is only 17% of total online video spend.
5. OTT investments increased despite concerns
Just a few years ago, new OTT streaming platforms were being launched regularly and consumers were anxious to embrace them. Now, platforms struggle to match growth of 2021 and prior. To overcome challenges groups, like Disney+ and Netflix, have introduced ad supported versions at a reduced cost to mixed reviews. Despite the challenges, 5.7k brands increased their investment in streaming platforms YoY. Together their buys were nearly $1.3 billion. Most notably LinkedIn, eHarmony, Kohl’s, and Febreeze contributed to this YoY increase.
While the Upfronts and Newfronts are an increasingly important time for large networks and media conglomerates, it is also an important time for all media sellers to understand the shifting marketplace and carve their niche into the new year. There is much opportunity to capitalize on the changing advertising landscape and continued digital growth.
For nearly two decades, I’ve had the privilege of helping lead media’s evolution, first as an executive at two U.S.-based companies that were early to market with streaming video products, and now as a digital transformation consultant working with a variety of international media companies.
Many of the global execs I meet these days are worried that they are behind when it comes to streaming—playing catch up with the U.S. But is playing catch up such a bad thing? I say it’s not. In fact, by “playing catch up,” late movers have an opportunity to learn two key lessons from the U.S. streaming market and thus serve viewers more effectively.
1. Streaming is a long-term investment
After several decades in which the basic methods of creation and distribution were relatively stable, digital technology came along and changed the game. Unfortunately, in the early days of digital, many U.S. media companies took a short-term approach to this massive shift.
Instead of undertaking streaming development as an opportunity to fundamentally transform viewer relationships, most U.S. media companies viewed streaming as an experiment or side project. This led to short cuts in product development. That resulted in dozens of copycat streaming interfaces that today all more or less look just like Netflix, for better or worse. This short-term approach also led to a lack of standards development. That resulted in dozens of measurement methodologies and little to no transparency in companies’ stated metrics for success.
Those who are late to market can take advantage of the learnings from this short-term thinking by setting expectations internally and externally about how long their transition will take. Investing long-term in more thoughtful products will strengthen viewer loyalty. Investing long-term in shared metrics standards will strengthen relationships with partners and investors.
Streaming video is a long-term investment in innovation. It is an ongoing commitment to continuous change. Executed successfully, streaming video should mean more value for viewers—increased options and the convenience of on-demand. And that will result in more loyalty for media brands and more value for investors.
2. Do what you do best
The U.S. is a singular entertainment market. It’s large, geographically and demographically diverse, and relatively affluent. The most game-changing media company from the past two decades of U.S. innovation—Netflix—was actually a unique by-product that arose from the proximity of Hollywood and Silicon Valley and the relatively early widespread adoption of broadband in the U.S. market. If your country is not the U.S., don’t assume your non-US-based media company should follow the same strategies as the U.S.-based giants. Your company doesn’t need to be the next Netflix. Nobody wants or expects that.
The U.S. has too many streaming services that are practically indistinguishable from one another from the viewer perspective. Many are stuck managing churn on mediocre products as opposed to building loyalty via truly excellent offerings.
Unfortunately, this came about because the media companies that launched these streaming services incorrectly thought they had to compete head-to-head with Netflix in a winner-take-all Hunger Games. Recognizing that there is room for many strategies and many types of streaming services in the U.S. would have saved many media companies from over-investing in the wrong places.
The lesson here is to chart your own path. You should know your core viewers and the nuances of your market better than anyone—and you should take advantage of that. Not having to compete amid the complexities and pressures of the U.S. market is an advantage for media companies in other regions. Latecomers can avoid the churn management Hunger Games by doing what they do best, focusing on what differentiates their brand rather than copycatting the struggling strategies of other media companies.
Similarly, while there is room for international brands in most markets, there are nuances to local cultures that can allow for native media companies to truly own their markets. This is also the best way to super-serve your audience: build out from your core identity while embracing new streaming technologies and models.
The bottom line
Let’s get one thing straight: streaming is not a war. The “streaming wars” are a narrative concept, convenient for headlines but ultimately an overly simplistic way to frame the latest evolution of the media industry. In fact, there are and will be many successful players, and as streaming further evolves, it will continually present new opportunities for media companies everywhere to entertain, inform, and engage.
The models might differ from company to company, but all should be investing in an ability to execute continuous evolution. Smart media executives can double down on a long-term investment in their core brands and on super-serving their audiences for continued success in their own markets and beyond.
Technology is an essential tool for enabling efficiency in today’s fast-paced media landscape. This is especially true of new media platforms—including retail media networks, connected TV (CTV), and streaming services—whose rapid growth has left publishers with little time to reevaluate and optimize their ad monetization processes. Most of these platforms are utilizing legacy ad ops processes as a result, the majority of which are highly manual and not suited for the pace of digital media.
The consequences of this trend have led to mounting challenges for publishers, including delivery delays, higher error rates, increased makegoods, and slower revenue recognition processes. To eliminate these inefficiencies and enable growth at scale, publishers must leverage automation. If your business struggles to keep pace with the rapid evolution of new media and ad revenue models, here’s how automation can help you streamline your manual workflows and future-proof your ad ops processes.
Out with the old, in with the new
The ad ops processes that have worked for long-standing, traditional publishers cannot meet the needs of today’s modern digital media players. They need to be run continuously to keep up with rapidly evolving ad revenue models, which is challenging because they employ time-consuming manual processes such as audience targeting and data analysis.
Unfortunately, many media players continue to adopt these legacy workflows because they have been the norm for so long and are the path of least resistance. But this is simply not sustainable. The demand for targeted audience reach, coupled with the speed at which these platforms are growing, means that workflow inefficiencies will only increase. At the same time, ad ops teams are put at a major disadvantage because they typically work on parallel campaigns across multiple platforms and ad servers. This creates siloed and fragmented data and makes tracking and analyzing campaign metrics extremely difficult.
Automating manual processes is the key to eliminating workflow inefficiencies and increasing productivity. It’s also essential for enabling career growth and professional development. When ad ops teams use automation to relieve members of repetitive and menial tasks such as data entry and reporting, they can turn their attention to the higher-value jobs that require strategic thought and therefore can only be carried out by human beings. Rather than seeing automation as a threat to job security, it can be viewed as a tool for skill expansion and professional growth.
Using automation to support the foundational needs of media companies
The benefits that both new media and traditional publishers can gain from automation are plentiful and help support three foundational needs:
Unity. Automation can integrate internal platforms, improve communication between teams, eliminate data silos, and enhance data visibility.
Performance. Automation can streamline manual tasks to reduce errors, makegoods, and delivery delays. It can also boost campaign performance and improve client satisfaction by allowing campaigns to be optimized in flight.
Guidance. Automation can be used to develop user-friendly systems that improve internal knowledgeability, as well as create platforms that notify teams of potential errors so they can troubleshoot before mistakes occur.
Automation also helps increase profits by allowing teams to focus on revenue-boosting activities like business growth strategy and client management. It frees them up to run more campaigns, which is a win-win for everyone: Advertisers appreciate the maximized brand exposure, and publishers benefit from the incremental revenue. Finally, automating order-to-cash processes allows for quicker invoicing, which means faster revenue recognition and more cash to reinvest into new business initiatives.
The time to automate is now
While the current economy has forced all industries to do more with less, efficiency has always been a necessity for publishers. Now that advertising has become a key revenue model for new media players, it’s essential for them to leverage technology to enable productivity and scale. The time to automate is now, as artificial intelligence, machine learning, and automation tech become more accessible and affordable. Publishers — especially new media players like retail media networks and CTV companies — must take advantage of this time to implement automation or risk getting left in the dust.
Sometimes the weather is the story. However, weather also impacts many of the stories journalists tell – from sports events to celebrity weddings, groundbreaking ceremonies, and more. Maps and weather data can be powerful tools to create more memorable and impactful videos. Digital publications and platforms can leverage these elements to illustrate location, specify routes, and provide predictions regarding the potential impact of current and upcoming weather to create more engaging content.
There are many benefits of incorporating maps and weather data into video content, and all it takes is adding this capability to the existing software stack. Let’s take a look.
Why maps and weather enhance storytelling
When it comes to video content, it’s important to have tools that make it easy to enhance coverage of breaking news quickly. Maps can make it easier to visualize stories, such as election news and big-city races. Creating custom maps for breaking stories helps your viewers feel like they are involved rather than just passively watching. As a result, digital publications can increase engagement and viewer loyalty.
They can even provide coverage on a street level, which helps personalize a reporter’s video stories. By offering street-level viewing, your publication can go beyond generic maps. This personalization adds a level of depth to your storytelling that many other publications lack, making your stories unique and compelling for your viewers.
Additionally, weather data can be used to provide further context and insights to stories of all kinds. Companies can use weather to illustrate the role wind may have on a football game or how the path of a storm might affect an outdoor event. Since weather impacts almost every decision, this content has immense value for audiences.
5 ways map and weather content improves video storytelling
By bringing maps and weather data into video stories, journalists, reporters and content developers can provide more comprehensive, engaging videos. Here are just a few of the ways that maps and weather data can improve your digital video content:
Generate maps for specific stories. Maps can be generated for specific stories with the right tool. They can be customized to support the story with stunning visuals.
For example: Local digital publishers may choose to cover a 5K race or marathon. Incorporating maps into the story would allow teams to graphically showcase the route, and bring in “guests” at certain points along the map.
Illustrate the impact of weather on the story. In the case of a big event such as the Boston Marathon or New York City Marathon, publications might include commentary from elite athletes. Since weather can influence the outcome of races, content creators could showcase the impact of tailwind and humidity and include commentary and predictions about how the weather conditions will impact the race.
Weather was a major factor in the Ineos 1:59 Challenge, in which Eliud Kipoge broke the 2:00 marathon. Kipoge noted that “One of the biggest factors in running a fast marathon is the weather – temperature, humidity, precipitation, wind speed and direction will all have a significant impact, even the air pressure has some effect.” The addition of this unique perspective on how the weather impacts potential outcomes – and makes reporting more engaging.
Display live conditions. Content producers can illustrate the impact of weather on all sorts of current events such as outdoor sports games, state fairs or festivals, graduation ceremonies, holiday community events, and more. (For example, check out this bike race coverage.
Bring stories to life with guests & visuals. Display the impact of weather for upcoming event stories and bring in local meteorologists as expert guests. With weather graphics, teams can discuss the impact a hurricane will have on a community or how snow will affect the morning commute.
Drive revenue with weather-related ads. In addition to providing context and engaging more viewers, this form of storytelling can also be used with sponsors to drive revenue. For example, an owner of a tire company can sponsor the video and provide tips on what type of snow tires are best to buy when winter weather is approaching. Local advertisers – such as hardware stores during BBQ season or local caterers during graduation stories – will also find that the weather tie-in makes their advertising more relevant.
Real-life examples of combining weather data and map overlays
Wondering how to combine weather data and map overlays in videos? Here are a few use cases:
Election coverage Election coverage always draws a large number of viewers. It risks falling flat however, if high-quality graphics are not incorporated. With the right tools, journalists can enhance their election coverage by showing counties graphically. Digital publications and channels can bring reporters in at different polling locations, providing on-the-ground coverage for a more comprehensive and detailed viewing experience.
Marathon, parade, or other coverage of big events Marathons and races cover a large area, which can be difficult when there are only a few available team members. With advanced video tools, however, teams can use a distributed workforce, which allows reporters to create, publish, and live stream content at any time from any location along the race route. The same goes for parades or any events that would be enhanced by maps and weather data.
Telethon coverage The right video tools allow team members and sponsors to create and publish videos without requiring them to use specialized skills, complicated hardware, or expensive equipment. As a result, publications of any size can have the ability to host telethons or fundraising events. With the right tool, guests can easily participate from a remote location. Maps can then be used to showcase which areas have contributed the most and to set goals across a specific demographic.
Final Thoughts
Scaling video production with maps and weather can make videos more engaging since these provide more context to the stories already being told. They can also help audiences understand the scale of a story, or make it more personal through localization. By combining live map and weather data, digital publications and channels can provide real-time, up-to-the-minute coverage to viewers, with all the insights, credibility, and professionalism consumers expect.
About the Author
Jim Politis is part of the Max Weather solutions product management team at The Weather Company, where he focuses on Max Velocity, Max Engage, and Max Social. He was first part of the Max Quality Assurance team, and over the last decade at The Weather Company, Jim has been involved with nearly every product within the Max ecosystem. Prior to joining The Weather Company, Jim served as a broadcast meteorologist in Iowa, where he experienced many extreme weather events, from blizzards to record floods to tornadoes. One thing Jim appreciates about working at The Weather Company is that he no longer needs to present important information while hearing a tornado siren through the building walls! He has a bachelor of science degree in meteorology and an associate’s degree in computer science from Northern Vermont University-Lyndon.
Consumers appear to be more engaged with media than ever before. Social platforms, podcasts, and games have found their way into consumers’ daily lives. However, TV’s place at the heart of the household lives on, appealing to the masses and capturing audience attention for almost 3.5 hours a day.
That said, TV no longer just occupies one screen. Advanced TV channels such as video-on-demand (VOD), and free ad-supported streaming services (FASTs) are accessible on many devices. While this proliferation of distribution channels has changed how brands connect with audiences, viewers’ relationship with TV and Advanced TV is unique. Here’s why.
1. It’s grounded in high quality content
The period since the turn of the millennium has been dubbed the “Golden Age” of TV, which is characterised by the growing choice over not only what viewers watch but where, when, and how they engage with TV. Advanced TV (comprised of VOD, CTV, OTT, and addressable linear TV) is home to premium, long-form video content that — due to its strong entertainment value — will always attract highly engaged audiences.
It is, in fact, viewer demand for premium content that is the driver of the diversification of the TV landscape, as new platforms and services are launched to capture eyeballs. Although Ofcom’s Media Nations (2022) report found that UK viewing habits have been readjusting after their peak during the pandemic, it highlights that broadcaster video-on-demand (BVOD) services are bucking the overall trend and the time audiences spend with them per day is rising. So, how do consumers feel about maturing Advanced TV channels?
2. Linear TV’s reputation is preserved by Advanced TV
According to 36% of CTV viewers who participated in FreeWheel’s 2022 Connected Viewers: All Eyes on Streaming study – which surveyed consumers in the UK, Italy, France, Germany, Spain and the Netherlands (EU6) – ad-supported Advanced TV services give them access to an appealing mix of quality video content. To reach these audiences, who are increasingly adopting VOD and FAST services, industry players are implementing ad-funded models, but viewers’ expectations for quality extend beyond the content and apply to advertising as well.
That’s because linear TV, alongside setting the standard for premium content, has also established advertising as an expected part of the viewing experience. Research indicates that TV advertising creates memories among audiences due to its long-form video formats, giving brands strong storytelling opportunities and the chance to boost ad recall. In line with this, two-thirdsof respondents to Freewheel’s study who watch CTV find its TV-like ad experience to be the most attention-grabbing.
Furthermore, audiences are not the only ones with high expectations for Advanced TV. Ad buyers have become familiar with TV’s standards for high impact creative and competitive separation. The benefits of TV advertising go further than delivering impressions, and this is underscored by the latest iteration of measurement tools that enable marketers to gain insight into how TV affects audiences in the mid- and lower-funnel. TV advertising can encourage consideration and drive traffic to websites and apps, increasing sales opportunities.
3. Audiences trust broadcasters and media owners
Since viewers generally consider broadcasters and media owners to be the source of quality video content, they tend to have a close connection with providers in the TV landscape — one grounded in trust. On the basis of these relationships, broadcasters and media owners have access to valuable first-party data, which lays the groundwork for informed and highly effective audience-based targeting.
Advertisers and agencies depend on this information to reach desired audience segments and boost engagement. However, it also helps sellers improve the advertising experience for their viewer bases. If broadcasters and media owners can ensure they serve relevant, contextualised ads, they can meet audience expectations for a quality viewing experience. Over one-quarter of audiences surveyed in Freewheel’s study claim they have a preference for ads which align with the content they are watching, 24% value ads informed by geolocation, and 20% prefer ads relate to their interests.
As a result, the ability to create a relevant viewing experience can be a key differentiator for media owners in the competitive TV landscape. It will capture viewers while also maximizing the appeal of their media offering to ad buyers. This creates a positive feedback loop, as uplifts to ad revenue can further improve advertising operations and help fund the production of quality video content, which in turn attracts bigger audiences, making premium video inventory even more valuable. Media companies are responsible for communicating this trade value to viewers, so they understand that by sharing their data they are unlocking a better experience in exchange.
Audiences’ trust, familiarity, and high levels of engagement with TV is what makes it such a valuable ad environment to build brands. TV’s evolution will undoubtedly demand advances in measurement, standardization, and tools that can connect the dots between fragmented audience segments. However, every development in these areas from, both buyers and sellers, must keep viewers at the heart of the innovation process. Doing so is absolutely critical for preserving audiences’ unique relationship with TV.
Online video offers tremendous reach and growth potential for advertisers and publishers alike. But disparate technologies and fragmented metrics have been longtime pain points. There’s a clear need for a solution that can bring standardization, interoperability and improved efficiency to the industry.
That solution might finally be on its way with the Interactive Advertising Bureau’s unveiling of their ambitious Advanced TV initiative. Built alongside standards that have already been approved by the Advanced Television Systems Committee (ATSC), the IAB’s work could prove to be a significant step toward universal addressability, both for the myriad of devices and online services that make up the ATV ecosystem, and for the elusive bridge to linear TV measurement as well.
Standardizing and unifying all these different outlets of buying and selling ads in a way that allows everyone to compete means that everyone can win, including consumers. We have seen in the past that these types of issues are resolvable when the industry comes together and comes up with a solution that works for everyone. This could be the start of something truly transformational.
Advanced TV explained
Before diving into the IAB’s plan, it’s important to understand what Advanced TV is.Namely,Advanced TV is an umbrella term that refers to any TV device or service that isn’t part of traditional broadcast channels (or Linear TV, with some exceptions). Those products and services are often distinct from one another in subcategory, but they’re all considered a part of Advanced TV as a whole.
From an advertising perspective, the key divide between Advanced TV and traditional broadcast is addressability, which isthe ability to serve targeted ads to viewers based on their individual data, and track the success of whole campaigns based on various observable metrics. Standardizing and streamlining that process across Linear and Advanced TV is the crux of IAB’s initiative.
The grand plan for Advanced TV
The IAB released a three-year roadmap that outlines the implementation of their vision. In it, they listed five key objectives that they will use to chart its success:
Interoperability for frame accurate ad delivery and ad break management
Universal addressability and reconciliation for audience measurement
Full auditability for advertising campaigns delivery
Ad measurement for delivery and viewability verification
Omnichannel sales management for programmatic buying and selling of upfronts as well as spot buys
To accomplish these objectives, the IAB outlined the technologies that they will be deploying over the next three years to modernize the medium.
Standardized Video Watermark Signal Utilizing OM SDK
Working within digital standards like OM SDK, the IAB’s open watermark signal will collect vital measurements like viewability verification across the breadth of ATV’s services and devices. It will also allow for universal ad break management and frame-accurate ad insertion or replacement for video publishers. This is all in hopes of achieving a better ad experience for consumers who are otherwise forced to view the same ad many times over due to poor targeting capabilities.
Universal Asset Identification (Ad-ID)
In conjunction with IAB’s watermark, a universal ad identification system will be key to auditing campaigns and creatives. This will provide the much-needed ability to track both throughout the supply chain, so any ad can be identified and attached to its respective campaign. Ad-ID will also be a crucial component of bridging the tracking gap to linear channels.
2+ Impression Currency
This technology and methodology will reconcile audience measurement based on data from multiple delivery channels, including linear ones. In the future, this will standardize tokenization and reconciliation, improving universal addressability.
Programmatic Upgrades via OpenRTB
To ensure scalability on a programmatic level, IAB’s watermark will integrate with OpenRTB signaling over the next three years. This will also include developing live streaming ad break management and publisher safety guidance.
Conclusion
If IAB’s initiative can deliver on its objectives, the Advanced TV landscape could be on the verge of a sweeping evolution. One that will turn the current disparate jumble of technologies and metrics into an interconnected, holistic, and truly universal measurement system across both linear and non-linear channels. The task is great and the days are early. But it’s hard not to be excited about the possibilities, and we’ll be among those watching the IAB’s progress – and the evolution of Advanced TV – with keen interest over the next few years.
While evergreen issues around trust and a focus on the audience experience peppered the first in-person DCN Next: Summit since 2020, emerging opportunities – and concerns – around generative AI were also focal at the event. Held at the Fort Lauderdale beachfront Conrad Hotel, the 2023 summit hosted a wide range of speakers from inside and outside the DCN membership to discuss the business and future of media, brand mission, omnichannel strategy, consumer preferences, and the impact of the challenging economic and regulatory climate.
Surveying the regulatory landscape
DCN CEO Jason Kint kicked off the event with a focus on current key regulatory issues that impact digital media. He emphasized that the focus must remain on aligning content experiences, advertising behavior, and data usage with consumer expectations. He also looked at the current state of antitrust regulation.
As Kat Downs Mulder, SVP and GM of Yahoo News put it: media brands have a responsibility, in asking consumers for their information through sign-ons, “to be protective of our asks and thoughtful about what we request.”
Shoshana Zuboff, author of the book The Age of Surveillance Capitalism
Kint’s points were hammered home by Shoshana Zuboff, Harvard Business School professor and author of the book The Age of Surveillance Capitalism. Zuboff delineated the history of privacy erosion leading to tech companies’ engagement in a “secret massive scale extraction of human data” and how regulation is a driving factor in reining it in.
The current drive towards antitrust and reining in the dominance a few players have over the ad market was a focal point for Utah Republican Senator Mike Lee, who addressed attendees via Zoom. He discussed a bill he is reintroducing “in a few weeks with bipartisan support,” which is designed to restore and protect competition in digital advertising and improve advertising transparency.
“Unfortunately, big tech behemoths like Google have inserted themselves as middlemen into this relationship, extracting monopoly rents not just on their own properties, but from every corner of the entire internet ecosystem.”
How brand focus empowers growth
The impact of emerging regulation is far from the only challenge media executives currently face. Speakers touched on inflation, supply chain disruption, European conflict, U.S.-China tensions, the ongoing impact of Covid, climate concerns, labor challenges, the erosion of trust in institutions, and the fight for free speech.
However, Almar Latour, CEO, Dow Jones and The Wall Street Journal publisher (pictured at top) said that challenges like these actually drive brands closer to their mission. For his brands, that mission is to go deep with products to provide truth relevant to different aspects of the business world, he added. This strategy is one he believes will lead to subscription growth.
Producing great products consumers love and return to over and over is indeed a driving factor in subscription strategy, as illustrated in a discussion between Julia Beizer, Bloomberg Media CEO and chief digital officer and Mulder. She noted that consumers value connecting with authoritative voices in brand podcasts and newsletters.
Bloomberg Media CEO and chief digital officer Julia Beizer, & SVP and GM of Yahoo News Kat Downs Mulder in conversation with Axios’ media reporter Sara Fischer.
Indeed, building an infrastructure on the foundation of staying true to one’s brand is key to success, according to Bonin Bough, Group Black co-founder and chief strategy officer.
Brand, however, is not some vague marketing tool. Scott Mills, BET president and CEO said that maximizing brand requires a comprehensive data-driven ecosystem encompassing linear, streaming, and digital platforms.
Advocating for truth and accuracy
Maximizing brand value requires providing consumers with a source of much-needed, trustworthy information – particularly when others seek to tamp it down and create a void that is often filled with dis- or misinformation.
Scott Mills, president of BET
Addressing Florida’s Department of Education rejection of the AP African American History course, Mills noted that such actions will “drive us to allocate more of our resources or more of our attention to ensuring that our community—and people who value and respect our community—have access to accurate information.”
Clearly, the need for accurate information is a global one, though journalistic approaches and press freedoms vary widely. In his work as the manager for East and Southern Africa at the organization Journalists for Human Rights, Dr. Siyabulela Mandela has found that offering training to local journalists not only empowers them, but helps their work better serve local communities. He said that improving journalism’s role of providing checks to those in power is critical at a time when “there seems to be a shift from more democratic ways of doing things towards more totalitarian ways.”
Dr. Siyabulela Mandela, Journalists for Human Rights
Mandela advocates for an approach that enables Western journalists to reframe stories in East and Southern Africa and the Middle East with a more contextual focus on human rights by leveraging his organization’s local knowledge base. He favors the idea of a collaborative exchange program for mutual training with journalists from East and Southern Africa. Each, he pointed out, has much to learn from each other.
Evolving with the times
In addition to providing content that continues to address the needs of audiences, speakers discussed how innovation in storytelling provides creative and impactful ways to engage and inform audiences.
For Emblematic founder and CEO Nonny de la Pena, that means finding new ways to use virtual reality. Nicknamed “the godmother of VR” de la Pena illustrated techniques and showed behind the scenes insights into how some of the most powerful VR stories have been created. However, despite her enthusiasm, she said that given the fact that creators of misinformation often leverage powerful tech, it is essential to establish immutable provenance for footage to make it difficult to manipulate.
Alice McKown, publisher and CRO of The Atlantic
Encompassing non-traditional strategies to engage new audiences requires portfolio diversification, noted Alice McKown, publisher and CRO of The Atlantic. While the company has digitized its entire archive of 30,000 articles from its 165 years, it also has expanded efforts into creating new ways to leverage its IP, including immersive art exhibits, video, podcasts, book publishing, and events.
Hannah Yang, Chief Growth Officer, New York Times
The National Geographic also has instituted strategies to evolve with the times while staying true to the brand’s core attributes. The magazine still attracts a relatively small, but incredibly loyal following, according to editor-in-chief Nathan Lump. These days, however, National Geographic brand reaches millions of people via social media, the National Geographic Channel on Disney Plus, virtual reality, live events, a travel business, consumer products, books.
Given the many ways that the brand now reaches audiences, Lump pointed out that National Geographic is the biggest it’s ever been in its 135 years. National Geographic boasts 714 million global followers across the major social platforms alone.
For The New York Times, Chief Growth Officer, Hannah Yang told the audience that its impressive subscription growth is achieved through three well-defined missions: a subscription growth mission to meet financial goals; consumer-facing mission offering desired options such as games and cooking; and platform mission to ensure that all parts of the business have the technology and data perspective they need to thrive.
What’s next
“There’s never been a better time to monetize audiences,” noted Alex Michael, managing director of LionTree Group. He stressed the value of omnichannel strategy and bundling while discussing the investment opportunities his company is leaning into this year.
Richard Plepler, founder, EDEN Productions
The power of omnichannel was echoed by a number of speakers, including board member Robin Thurston, Outside Interactive founder and CEO. He said, “The concept of single sign-on omnichannel helps connect the dots and create value.”
Richard Plepler, founder, EDEN Productions and former HBO chairman and CEO, reminded attendees of something he’s advocated for many years: quality over quantity. “More is not better; only better is better. I am not of the belief that tonnage gets you more subscribers – what gets you more subscribers is when brands deliver on their promise.”
As DCN members map out strategies for 2023, innovation and audience focus remain constant. However, to win amidst contemporary challenges developing a seamless omnichannel strategy, while staying to brand mission, will be key to attracting new consumers and retaining existing ones.
There are over 300 streaming video services in the U.S. – and that number doesn’t include FAST channels. Consumers have a plethora of OTT services and access points across connected devices. So, how do media companies attract and retain viewers in such a large and fragmented marketplace? Parks Associates partnered with SymphonyAI Media to identify core analytics to help guide market strategies in the OTT ecosystem. Their new report, Optimizing Video: Enhancing Content Performance for OTT Success, looks at data solutions to best optimize content investment and performance.
Marketplace snapshot
According to Parks Associates, 87% of U.S. internet households now subscribe to one or more streaming video service, and 20% subscribe to eight or more OTT services. Consumers are adding new hybrid-model and FAST channels to their viewership mix. Netflix and Disney+ are two examples of media businesses launching ad-supported business models to attract new viewers to monetize content.
New niche streaming services are also popular among select audience segments. While appealing to a smaller audience, they offer unique and often obscure content. Sixty-one percent of consumers added other subscriptions in addition to the big three – Netflix, Amazon Prime, and Hulu. Interestingly, very few consumers have an exclusive single-service subscription.
Content continues to be a key driver of subscriptions, with 48% of consumers referencing content availability as the primary reason for subscribing to an additional service. However, while churn appeared to stabilize last year, nearly half of streaming subscribers leave one service for another multiple times within a year.
Content performance
Media companies continually invest in content to attract, engage, and retain viewers. Content analyses offer a direct link to profitability. They are essential to understand viewership and forecast the revenue generated by a specific property, series, or partnership. They also help assess workflow efficiencies and revenue opportunities across SVOD, AVOD, and FAST.
Internal data necessary:
Content data – genre, series, season, episode, asset I.D.
Distributor data – terms, avails, distributor I.D., distributor type
Revenue data – subscribers, transactions, units sold, forecast
Advertising data – impressions, CPM, fill rate, minutes streamed
Measuring content performance helps quantify consumer engagement. Each of the essential analyzes offer important metrics and insights to assess performance across business operations.
Content performance provides a foundation to assess spending on content. It allows objectivity when looking at program performance.
Assessing workflow metrics, from managing content libraries and editing ad breaks to costs associated with programming FAST channel schedules, offers insight into revenue optimization and deal terms.
Predictive content analytics are important to understanding what to charge or pay across the customer lifecycle. These analyzes assess the consumer value of the content investment and provides insight into pricing strategies.
Content ROI assesses content value across different business models ‒ subscription, ad-supported, and even transactional. It allows media organizations to understand and optimize the impact of business decisions on financial metrics.
Analytics are essential to evaluate content performance and optimize operations across revenue models ‒ ad-supported and subscription businesses. Investing in automating, standardizing, and normalizing data structures in an organization are important next steps to streamline the analytic processes.
With a highly competitive streaming landscape, many content brands are adopting hybrid business models. Disney+ and Netflix now offer lower-priced ad-supported tiers, and Paramount+ and Peacock offer FAST services to deliver real-time streaming of channel-based linear content. Notably, AVOD and FAST channels serve as growth strategies for many content providers in that they offer low-cost options that attract viewers.
A select number of top services—such as Pluto, Tubi, Peacock, and The Roku Channel—currently dominate the market. However, given that there are now more than 300 OTT channels, how can streaming channels differentiate to appeal to viewers and make inroads into the growing market? Quickplay, an OTT cloud business that enables personalization for sports, media, and entertainment, partnered with the research firm Park Associates to explore this question. Their report, Personalized Virtual Channels: Maximizing FAST Engagement, examines new ways for media companies to maximize the monetization of consumer viewership, particularly through the promise of personalization.
Hybrid streaming marketplace
As cord-cutting continues, and internet-connected device penetration of Smart TVs and media devices grows, OTT usage is the new norm for consumers. Eight in ten (80%) U.S. internet households subscribe to an OTT video service, 49% subscribe to four or more, and 33% use an ad-supported OTT service in the last 30 days.
As reported in DCN’s The Rise of and Best Practices for AVOD and FAST, the adoption of AVOD and FAST grew faster (55%) compared to SVOD (28%). Park Associates identifies “free cost” as the top reason consumers use AVOD (49%), followed by “content consumers like” (31%).
Consumers are attracted to the free offering of AVOD and FAST, with 38% stating that they do not mind viewing advertising on a free service. However, 41% of ad-supported customers do say that they dislike viewing video content with commercials, and 40% are dissatisfied with the frequency of ads.
Personalized virtual channels
First-party data collection is already in place with many content services requiring users to opt-in for data collection in exchange for a more personalized user experience. While other providers may not require an account, they often ask consumers to register to offer personalized favorite channels and recommendations. Content preferences and location (i.e., zip code) feed content recommendations – think local news, weather, and sports.
The report recommends combining cloud-based technology and programmatic operations to allow owned and operated brands to offer ad-supported personalized virtual channels. FAST platforms are cloud-based. They do not have channel or format restrictions and are easily adaptable for personalized virtual channels.
For the content provider, personalized virtual channels maximize the lifetime value of content libraries by extending content shelf life. Further, reusing existing libraries and programming rights can also help offset content acquisition and encoding expenses. For the consumer, personalized virtual channels deliver a lean-back experience while enhancing individual content preferences in a stress-free navigation environment.
Importantly, the data containing information on viewer preferences and habits allows virtual FAST services to deliver progressively smarter and more relevant content. The more engaged the viewer, the higher retention and, ultimately, the more effective advertising. It’s a win-win for all involved in the value exchange.
Personalized virtual channels’ delivery of personally relevant content yields higher content engagement and lower viewer turnover. They offer a better viewing experience for consumers while delivering new opportunities to monetize viewership.
