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Advertising | Industry-Research | Video

Advertising popular with streamers and consumers

It is becoming increasingly clear that advertising will play a significant role in the streaming ecosystem. As Disney CEO Bob Iger told investors in Disney’s quarterly earnings call, “The advertising marketplace for streaming is picking up.It’s more healthy than the advertising marketplace for linear television. We believe in the future of advertising on our streaming platforms, both Disney+ and Hulu.”

Industry giants are now seamlessly incorporating ad-supported tiers into their streaming options. This shift from the early days of subscription-based, ad free streaming underscores the industry-wide recognition that catering to budget-conscious consumers is integral to achieving sustainable subscriber growth.

New research from HUB, TV Advertising: Fact or Fiction, affirms that most television viewers actively embrace ad-supported offerings. Six out of ten viewers prefer ad-supported subscriptions, especially when presented with the prospect of a reduced monthly fee. Interestingly, those with reservations about advertising remain in the minority, underscoring the widespread acceptance of ads as an primary and tolerable factor of content consumption.

Shifting the paradigm

The transformation in consumer sentiment towards ad-supported subscriptions carries a dual impact. Firstly, it renders ad-supported tiers significantly more appealing to a broader spectrum of viewers, including those who haven’t subscribed previously. Secondly, it reinforces the notion that the quality and diversity of content have a significant influence over viewer preferences. This often outweighs the appeal of a completely ad-free experience. Within the streaming ecosystem, advertising now emerges as a central thread weaving together content variety, affordability, and viewer gratification.

The rising desire for customization

Furthermore, a growing trend in viewer preferences is the desire for enhanced control over subscription tiers. Nearly four out of 10 viewers express a strong inclination towards personalizing their subscription model. They’re searching for a flexible array of choices, ranging from a premium, ad-free encounter to a more budget-friendly alternative featuring strategically placed advertisements. The attraction in customization preferences empowers streaming providers to cater to a broader spectrum of consumer segments.

Entrants that intrigue

Notable platforms like Max, Disney+, and Netflix, which recently embraced ad-supported tiers, are meeting positivity from their audiences. This dispels concerns about potentially hurting your brand in a previously ad-free service due to the introduction of advertisements. Twenty-seven percent of viewers switched tiers. Among them, 60% switched from with ad to no ad tiers, and 46% switched from no ads to with ad tiers.

Enhancing engagement through thoughtful execution

Ensuring a satisfactory viewing experience for consumers creates an environment ripe for advertisers to thrive. When viewers encounter an appropriate amount of advertising content, their engagement levels increase. This principle extends not only to the overall number of ads but also to the duration of ad breaks. Contrary to the notion that advertising detracts from the streaming experience, it possesses the potential to elevate it, capturing viewers’ undivided attention when executed thoughtfully.

The valuable component of ad-supported subscriptions

As viewing sources diversify, ad-supported subscriptions assume a key role within the streaming landscape. Subscribers want the autonomy to mold their subscription expenditure as well as the degree of advertising they’re willing to embrace. In response, streaming platforms offer a dual strategy, presenting ad-supported and ad-free tiers. This shift harmonizes content diversity, affordability, and engagement, shaping the streaming ecosystem.

Advertising | Industry-Research | Video

For SVOD success, launch with ads from the start

In the ever-changing landscape of streaming services, media companies constantly explore new strategies to attract and maintain subscribers. One notable approach is the success of the ad-support SVOD tier. In fact, new research from Ampere shows that streaming services launching with an ad-supported tier from the start have a higher proportion of subscribers than those that added it later.

Ampere’s data reveals that SVOD services like Hulu and Peacock, which were early adopters of ad-supported tiers, boast an impressive 90% of ad-supported viewers. On the other hand, latecomers like Netflix, Disney+, and HBO Max struggle to gain significant traction with their ad-supported options. These late starters capture only a small share of their subscriber base. For instance, as of June 2023, approximately 2% of Netflix and Disney+ US subscribers are on the ad-supported tier. Even HBO Max, which launched an ad tier in March 2021, had only 5% of its subscribers on its ad-supported plan before transitioning to Max in April.

Drivers of success

Ultimately, an ad-supported tier’s success depends on several factors, including the service’s pricing strategy, content library, and targeted audience. Launching with an ad-supported option from the start appears to be more effective in building a substantial base of viewers. Late adopters may find attracting a significant share of their subscribers to the ad-supported tier challenging. This is especially true if the service has a strong legacy of being ad-free.

Ad-free service is still appealing

Despite the apparent appeal of ad-supported viewing, most new subscribers across the top seven SVOD services still prefer ad-free plans. According to Antenna data, between January and May 2023, three out of five new subscribers opted for ad-free viewing. Even services that recently introduced ad-supported tiers, such as Peacock, saw a considerable percentage (69%) of new subscribers choosing ad-free options.

However, there are potential changes on the horizon. Netflix has made a strategic decision to remove its Basic plan, which previously served as a mid-range option between the ad-supported and standard ad-free plans. With the elimination of the Basic plan, the price gap between ad-supported and ad-free viewing has increased significantly from $3 to $8.50 monthly. This move might lead more new subscribers to opt for ad-supported viewing due to the cost difference.

Additionally, Netflix’s crackdown on password sharing during June and July 2023 could have also impacted its subscriber base. Free viewers who were previously enjoying content outside of the subscriber’s home are now more likely to sign up for their accounts. For these price-conscious users, the cheaper ad-supported tier could become an appealing option.

However, the trend of traditionally ad-free services attracting more ad-free subscribers might continue to prevail. Peacock’s decision to close the free ad-supported tier to new users. However, they still allow existing subscribers of the free ad-supported to continue using it. This suggests that companies are recognizing the importance of retaining ad-free subscribers.

Industry-Research | Video

What consumers value in streaming services

The streaming television landscape is increasingly competitive. Experimenting with the formula for success, many streaming services are introducing ad-supported tiers, while others are raising subscription fees and consolidating corporate offerings. Therefore, understanding consumer preferences regarding payment methods, perceived value, and preferred providers is crucial to meet audiences’ changing needs in an evolving environment.

Hub Research’s new report, Monetization of Video, delves into the evolving dynamics of the TV business from a consumer perspective. The study shows that nearly half (43%) of respondents reached their set limit of seven different TV services and said no more. Another 35% of respondents actively set a limit of seven TV subscriptions but have yet to reach that maximum number. Limiting the number of TV subscriptions indicates (seven appears to be the magic number) that consumers are becoming more selective about the services they choose, seeking quality over quantity.

Usage and subscription

The report also shows that 44% of respondents spend more time on TV than a year ago, indicating a growing investment in the medium. Approximately 40% of Tubi or Pluto users rated these free platforms as the highest value, suggesting their investment in FAST content and user experience is paying off.

Furthermore, the research highlights that value perception among consumers is similar between ad-free and ad-supported versions of platforms. This suggests that consumers are willing to accept advertising if it allows them to access content at a reduced cost or for free. Providers should consider offering ad-supported and ad-free options to cater to a broader range of consumer preferences.

The study also finds that a significant portion of viewers (42%) sign up for a new platform but cancel shortly after. This trend is particularly prevalent among Gen Z viewers and those with children. Moreover, the research indicates that the more paid TV subscriptions a consumer has, the more likely they are to subscribe to a new service and cancel it soon after.

Assessing consumer perspective

Importantly, the HUB analysis provides insights into the consumer perspective on the streaming market and factors that influence their perception of value. The research looks at the complexity of the television landscape. It identifies how friction points, FAST channels, and economic factors affect consumer decisions and value perceptions.

  • Friction points and erosion of perks: Traditionally taken-for-granted perks, such as password sharing and content exclusivity, are starting to erode, leading to a higher level of friction among consumers.
  • Rise of FASTs: Competition in the subscription video-on-demand (SVOD) space is intensifying with the emergence of Free Ad-Supported TV (FAST) services. Media companies and TV manufacturers are entering this arena, further diversifying the TV landscape.
  • Economic factors: Consumer concerns about inflation and the economy’s state are additional variables shaping TV consumption choices.

Hub’s research offers insight into consumers’ evolving preferences and dynamics within the streaming industry. As the landscape becomes increasingly complex, understanding consumer payment preferences, value perceptions, and the optimization of content monetization is crucial for content services. By adapting to these changing preferences and offering compelling features, services can improve consumer satisfaction and grow revenue in this evolving industry.

Perspectives | Video

How video providers can create a compelling CTV ad experience

Audiences can now choose from a veritable buffet of advanced TV channels. Viewers can feast on their favorite shows via broadcaster catch-up services, online social video aggregators, free ad-supported streaming services (FASTs) and Smart TV apps, video-on-demand, and addressable linear. According to the recent Streaming Video: CTV Uncovered 2023 study from  AudienceXpress, 46% of UK connected TV (CTV) viewers surveyed also tuck into free streaming platforms daily to watch content.

So, how can broadcasters and premium video providers ensure the advertising experience captures these viewers’ attention? The latest consumer insights from AudienceXpress reveal current audience preferences to inform best practice; here are the biggest takeaways from the full study.

What’s on the CTV menu for UK audiences?

Understanding viewing habits is imperative for premium video providers when creating their content offerings. Almost U.K. CTV participants in the AudienceXpress study, for instance, state they watch more free ad-supported streaming platforms than live broadcast TV. To capture this audience, some broadcasters are diversifying their business models to include different platforms and models.

Viewers appear to prioritize accessing premium content over using specific platforms or channels; 59% of UK CTV audiences surveyed tune in to free on-demand platforms, including FASTs, when nothing on traditional TV channels grabs their interest. While these ad-supported advanced TV platforms are rapidly gaining traction among viewers, it is important to note that the AudienceXpress study also found that broadcasters’ live TV (37%) and catch-up services (35%) continue to attract a significant proportion of viewers, reaffirming that the main driver of platform success is content. As such, media buyers are looking to connect with viewers across all touchpoints, with advanced TV channels enabling them to drive incremental reach and capture the attention of elusive audiences.

Sharing personal data leaves a bitter taste for many viewers

According to the Streaming Video: CTV Uncovered 2023 study, only 26% 26 U.K. respondents with a CTV screen are comfortable sharing their personal data with brands in exchange for more personalised TV advertising. Data sharing seems to be on top of mind for U.K. viewers. (This could possibly be a ripple effect from major web browsers’ removal of third-party cookies.) Although this shift does not impact the TV and premium video advertising ecosystem directly, it requires media owners to keep privacy-conscious viewers front of mind when refining their advertising operations.

Audiences’ views on data privacy will continue to shape the future of premium video advertising and many remain cautious about how their data is used. For this reason, TV and premium video providers need to uphold audience trust. They can do this by being transparent about data practices. They must also clarify why advertising is critical for making premium content more accessible to video-hungry viewers and for funding new, quality productions, as well as leveraging data to cook up a compelling and relevant advertising experience.

With that in mind, which elements of advertising resonate best with U.K. CTV viewers?

Create an appetizing ad experience

Despite being apprehensive about sharing data, audiences still appreciate some degree of targeted advertising. Almost one third (32%) of U.K. CTV participants in the AudienceXpress study prefer ads that harmonize with the context of the content they watch, one in four prefer ads based on their geolocation, and one in five like ads relevant to their personal interests.

Capturing attention could likely be the ad industry’s top priority as many advertising environments become saturated. In fact, ad volume can make or break the viewing experience with seven in 10 UK CTV respondents feeling there are too many ads on social video aggregators. It is important that TV and premium video providers continue to carefully manage their ad volumes using advanced digital capabilities to further enhance the advertising experience through frequency capping and ad podding.

Nearly six in 10 U.K. CTV respondents also affirm that when accessing free premium video and TV-like content on their CTV screen, they would prefer pre-roll style ads with no ad breaks afterwards. It is necessary for TV and premium video providers to account for this and balance sustaining a quality ad experience with helping advertisers meet their KPIs and attracting greater spend.

In addition, almost three-quarters of these CTV viewers surveyed indicate that they pay more attention to advertising on premium on-demand TV platforms compared to social media or video aggregators. Through ensuring their advertising experience is contextually relevant and features long-form ads with high-impact creative, TV and premium video providers can secure high levels of attention that increase the value of their inventory.

As the advertising landscape is rapidly evolving, TV and premium video providers need to continually taste-test how their advertising experiences and business models align with audience habits. With in-depth insights of the current market, they can plate up successful offerings that meet the expectations of viewers and media buyers, define best practices for advanced TV advertising, and secure an essential valuable delicacy — audience attention.

Industry-Research | Video

Publishers focused on audience, automation and video

In today’s fast-paced digital world, media companies face intense competition across many different platforms. Echobox, a provider of social media management tools, offers new research, “Publishing Trends 2023,” highlighting media businesses’ priorities, challenges, and opportunities. The top three priorities for content companies include finding new audiences (53%), automation and AI (50%), and video content (47%). Staying ahead of the Facebook algorithm (53%), declining traffic (47%), growing digital subscriptions and diversifying revenue streams (both 34%) were commonly cited challenges.

Echobox surveyed a targeted sample of 32 leading media companies across the world. This global perspective includes respondents from 20 countries in Europe (67%), the Americas (20%), and Asia (13%).

Platform usage

Instagram emerges as a vital channel for publishers in 2023. In fact, the study shows that 66% of respondents believe Instagram will play a more significant role in their business this year. Publishers recognize the value of leveraging Instagram’s visual nature for content promotion and audience interaction.

TikTok is also gaining prominence, with 59% of publishers turning to this platform for video content distribution and audience engagement.

Media brands recognize the importance of capitalizing on the visual nature of TikTok and YouTube. By investing in video production and distribution, the report suggests that media companies can enhance their content offerings and attract a wider audience.

However, challenges persist on platforms like Facebook, primarily due to its lack of algorithmic transparency. Approximately one-third of media companies view Facebook as vital, and they want to maintain visibility and reach on this platform. Unfortunately, the opaque evolving nature of the platform requires publishers to constantly adapt their strategies, remain vigilant of algorithm changes, and seek alternative avenues to engage their target audience.

Embracing newsletters

Newsletters remain an area of growth for many media businesses. The report highlights that 56% of respondents plan to expand their newsletter offerings or start producing newsletters in the coming year. Publishers understand the value of direct communication and engaging subscribers in off-platform vehicles. By crafting compelling and personalized content in newsletters, media businesses can establish stronger connections with their audience and help drive traffic to their websites.

AI attraction

The report indicates that 63% of media companies acknowledge the growing importance of AI for their businesses. AI-powered tools and technologies offer immense potential to streamline operations, optimize content distribution, and enhance audience targeting.

Publishers can leverage AI to automate repetitive tasks, personalize content recommendations, and gain valuable insights into audience preferences. Media companies using AI can unlock new efficiencies, improve engagement, and achieve better business outcomes.

Ending third-party cookies

When thinking of the impending demise of third-party cookies in 2024, less than half of the respondents foresee a significant impact on their business. Specifically, 31% do not anticipate any effect and 13% state that they don’t rely on third-party cookies. Of the 50% of publishers anticipating significant impacts, half report they are prepared while the other half are not.

The Echobox report does highlight that, though the growth of newsletters has slowed, the first party data insights they provide does provide a means to offset the loss of third-party cookies.

Future focus

The results of Echobox’s 2023 publisher survey does show a certain amount of continuity from last year, as traffic remains a concern along with Facebook, while newsletters continue to demonstrate value. This year did see significant economic impacts as well as uncertainty around the role Twitter will play for media companies and advertisers. The report finds that publishers are investing resources in a wider array of social platforms in an effort to diversify their own audience demographics and to position themselves for increased adaptability to weather the evolving social landscape and consumer consumption trends.  

Supporter Spotlight | Video

Is it time to upgrade your video-production toolkit?

When it comes to video storytelling, tools are a critical factor in determining the quality of your product. Reliance on outdated video-production tools can affect your ability to compete with other brands battling for audience attention and loyalty.

Video is becoming an incredibly valuable tool for disseminating information quickly to audiences. In fact, 43.4% of internet users watch online videos as a source of learning each week. For media organizations seeking to build loyalty and report on breaking news, it’s important to have a suite of tools that makes it easy to create brand-consistent videos with just a few clicks. 

Given trend shifts in the video-production industry, read on to evaluate if your tool suite could use an upgrade.

What goes into video production?

The world of modern video production is more important than ever, given that companies need to put tools in the hands of as many reporting teams and video editors as possible. While some videos may require high production costs and complex systems, it is beneficial to also have tools that make it easy to respond to timely local news and major events. For content that needs to be published quickly, companies need to have resources available that allow reporters to share content at any time, from anywhere with the click of a button.

Today, publishers producing the best videos customize their themes, ensure brand recognition, publish directly from advanced interfaces and much more. The videos that stand out in today’s crowded marketplace live on multiple platforms and speak directly to viewers while getting online quickly.

Video production challenges 

There’s no doubt that today’s video storytelling is better than ever. That quality comes at a cost, though. Modern video storytellers face a variety of challenges with video production, including the following:

1. Time

In today’s fast-paced news environment, publishers need to be able to post top-quality videos in less time than ever before. This time crunch is a real problem for many organizations and can easily separate the winning digital publications from those who fall behind.

To combat time-related issues, teams benefit from platforms that allow them to automate many of the repetitive tasks of video production. Tools like templating and brand recognition packages help publishers push to-the-minute video content without missing crucial deadlines or falling behind the news cycle.

2. Incorrect formatting 

Many storytelling teams have tried to get around time-crunch problems by creating one-size-fits-all content. Unfortunately, this kind of content often feels unoriginal and duplicative. Additionally, it may not be properly sized or formatted for the intended platform. As consumers increasingly gather information from alternative sources such as social media, email and websites, it’s important to have content that can be adjusted and reformatted for each location.

To combat this issue, teams have two choices: invest far more time and energy in each video or use a platform that makes it easy to create diverse material that remains on-brand. The right digital publishing tools provide comprehensive customization options, including the ability to swap out themes while applying branding across videos and publishing them in the correct sizing. 

3. Software limitations

Relying on limited, low-capacity software to produce critical video content can be a big pitfall for publishers that want to stand out. Software limitations make it virtually impossible to remain competitive in the video-storytelling environment and may even create unnecessary bottlenecks during breaking news events.

To combat software limitations, today’s digital publishers must find video-production software that provides powerful tools, including theme customization, personalization, publishing flexibility and more.

4. Team size

Historically, teams have needed to grow larger to support video storytelling efforts. That’s because video storytelling tools are often complex, and not everyone was equipped to use them. As a result, teams needed to create entire publishing and production departments full of people who knew how to use advanced tools.

Today, however, large teams can actually make it harder to be agile and adaptable. Therefore, the most competitive publishing teams out there are paring down, opting for more intuitive software (that doesn’t require specialized skills to use) rather than larger teams. This allows your teams to be effective in a variety of key focus areas, while still producing engaging content.

Critical Focus

Video production software can help increase competitiveness across the market. With this in mind, let’s look at a couple of recent advancements in video-production software that will help you optimize your strategy. 

Automating branded content

To be recognizable, branding should incorporate the same logos and color schemes across all videos. This is necessary to ensure brand recognizability, while producing quality material quickly and easily. Modern video-production software can help you reuse branded assets and themes where they are needed. The ability to save brand themes and layouts across multiple platforms allows media teams to rapidly implement them across the board. This gives teams more time to focus on making the content stand out while maintaining brand consistency. 

Anywhere, anytime video production

As teams have pared down and become leaner and more agile, video-production software has morphed to support the needs of small teams. In other words, your teams must be able to easily create videos from anywhere, at any time, with any device. This makes it easy for reporters in the field to cover breaking news across your social channels and your website.

Ease, automation, and always on-brand content

Today’s media teams must have the ability to easily create quality video-storytelling materials without sacrificing speed, accuracy or branding. Today, this is critical for any company that wants to remain competitive, creative and innovative in today’s fast-paced video-publication environment. 

Great video production serves several purposes: it spreads breaking news, educates audiences and promotes viewership. Clearly, media companies make a significant contribution in building their brand and that brand trust should be maximized across platforms. Streamlining that process allows teams to focus on creating the kind of content that promotes brand recognition and audience retention.

Industry-Research | Video

Understanding consumer choices in the evolving TV market

Consumers grapple with an overwhelming array of choices and confusion in an era of rapidly evolving streaming services. The streaming landscape has recently witnessed significant shifts, with established players like Netflix and Disney+ introducing ad-supported tiers, Peacock discontinuing its free tier, and anticipation around the impact of Netflix’s crackdown on password sharing.

In this context, HUB’s Best Bundle study aims to shed light on how consumers adapt to the evolving TV/streaming space and land upon the the ideal combination of services that suit their viewing needs. It delves into the extent to which viewers opt for linear versus on-demand services, ad-supported versus ad-free experiences, and subscription-based versus free streaming services. By examining these variables, the study aims to decipher consumers’ choices when constructing their personalized bundles.

The research shows a notable decline in the average number of TV sources used by respondents from 7.4 in 2022 to 6.4 in 2023. This decline suggests that consumers are consolidating their streaming services and opting for a more streamlined approach to their TV viewing experience. While the average of TV sources declined, the overall demand for streaming services remains robust.

Though the use of streaming remained the same compared to last year, responses with an MVPD bundle dropped to 55% versus 62% in 2022. Consumers continue to embrace streaming as their primary source of entertainment, and the decline in the number of sources used does not imply a decrease in consumption. Instead, it signifies a more focused and curated approach to streaming, where viewers prioritize quality over quantity.

Evolving landscape

Interestingly the largest segment of viewers (63%) continues to be those who utilize a combination of traditional and streaming TV sources. This remains consistent with last year (64%) and indicates that traditional TV sources remain relevant in the face of the streaming revolution.

The study reveals that 27% of viewers plan to add a subscription to their existing lineup, which is higher than the figure in 2021 (21%). While this shows a continued consumer interest in expanding streaming options, it also suggests a slight decrease from the previous year, as 33% of viewers intended to add a subscription in 2022.

Furthermore, more than half of respondents (57%) state that they have utilized at least one free-with-ads (FAST) TV service, which aligns with 2022 findings. This suggests that despite the proliferation of subscription-based services, free platforms with advertising support continue to attract many viewers. Cost-saving advantages of free services are attractive, and advertisements for access to content are tolerable.

The study also highlights a decline in the percentage of viewers who use three or more of the largest subscription video-on-demand (SVOD) platforms. In 2023, only 43% of viewers report using three or more of these SVOD services, compared to 50% in the previous year.

Hub’s Best Bundle research points to a nuanced streaming landscape, with viewers seeking a balance between traditional TV sources and streaming platforms. While streaming services are immensely popular, traditional TV sources still play a significant role in viewers’ entertainment consumption. The addition of new subscriptions indicates that viewers are willing to explore and invest in streaming services, although the growth rate has slowed slightly compared to previous years. Further, as the streaming landscape continues to evolve, service providers must take note of viewers’ shifting preferences. Streaming platforms can attract and retain viewers in an increasingly competitive market by offering diverse content, personalized recommendations, and competitive pricing.

Advertising | Supporter Spotlight | Video

Do advertisers fully understand the impact of streaming video?

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.

Marketing | Supporter Spotlight | Video

The benefits of bringing maps and weather data into your video content

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:

  1. 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.
  1. 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.  
  2. 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.
  3. 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.
  4. 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:

  1. 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.
  2. 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. 
  3. 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.

Industry-Research | Video

Personalized content comes to FAST streaming

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.

Advertising | Perspectives | Supporter Spotlight | Video

Ad-supported streaming offers opportunities for media brands

As the fight for attention and viewership intensifies, more media companies have diversified their strategies to include ad-supported models. This allows them to scale their advertising offerings and capabilities within the OTT streaming category.

What’s up with OTT?

OTT, short for “over-the-top”, refers to the streaming of media over the internet. According to a study by eMarketer, 1.88 billion people around the world will use sub OTT services like Netflix, Disney+, and Amazon Prime Video. However, that same report also mentions that fewer than 50% of internet users worldwide are watching programs via OTT, which proves that there is much opportunity for growth in the category.

Historically, OTT and streaming companies primarily focused on subscription-based models. However, as subscriptions plateaued, ad-supported revenue models have gained traction and become more mainstream. This broadens the reach of streaming to the many consumers who are unwilling to subscribe to content, but still want to view it.

OTT’s impact on advertising trends

OTT streaming models are impacting advertising trends in several ways. First, given the proliferation of offerings, there is increasing competition for ad dollars. We are starting to see this competition now, particularly as ad spend and targeting costs increase across the market. 

As the market evolves, inventory quality is also quickly becoming a hot topic. From a pure supply basis, do providers have enough inventory to reach targeted audiences at scale? The irony of targeting is that as targeting specifications increase, addressable inventory starts to decrease.

Additionally, when it comes to scaling, it happens in two ways: one is through actual ad sales based on inventory and that inventory being sold directly by the OTT platform. The other way is though parent companies and alternate organizations selling premium inventory on behalf of the media or streaming platform. When this occurs, all that remains to be sold are the remnants, thus raising the question: what does one do with the remaining inventory? With this comes a deeper discussion of fragmentation of inventory and data, which will impact omnichannel planning and overall scalability for many teams. 

Advertisers are leaning into OTT streaming as a critical part of their digital media mix to extend their marketing reach and increase ROI. As competition for ad space elevates across streaming and OTT channels, we will see agile media brands continue to develop new, unique ad products that will be sought out by advertisers to bolster their omnichannel strategies.

Opportunities for OTT advertising success 

While all streaming media companies have their own content and audiences, not all can come up with new, innovative ways to appeal to advertisers. To succeed in an ever-evolving ad monetization market, media brands must develop new ways to package their content and reach audiences based on unique user data points like content consumption preferences, to avoid becoming commoditized.

Additionally, top OTT streaming companies are working to elevate their ad models to create non-intrusive and enhanced user experiences while also keeping their ability to scale advertising models and targeting capabilities, which helps ensure success for their advertisers. 

Advertisers that want to target niche audiences at scale, when and where they spend their time, will be looking to streaming and OTT companies to fulfill their needs. Ad-supported OTT streaming models are becoming increasingly more mainstream as consumers take advantage of the lower-priced option. This results in a larger user base, which in turn provides a better opportunity for advertisers to reach their target audiences at scale.  

Therefore, media executives need to remain agile and prepare to accommodate these shifting strategies of advertisers that will include an increased ad spend within the OTT streaming category. By implementing an ad-supported streaming model and developing new ways to reach segmented audiences and engaging content packaging, media companies will be able to do just this. And the result will be increased ad inventory and diversified revenue.

As OTT streaming media platforms enhance their capabilities with AI and automation of their workflows, their targeting and success rates will increase. This will make OTT the ideal platform for advertisers to leverage when expanding their omnichannel strategies. Ultimately OTT streaming ad-supported models present a prime opportunity for media brands to expand product offerings and diversify revenue through niche audience targeting, premiere ad space packages, and scalability for their advertisers.

Perspectives | Supporter Spotlight | Video

3 tips for driving more video output

A well-produced video can expand your audience, drive loyalty, and increase the value of your digital content. Because audience demand and expectations are so high, digital publishers are now forced to produce engaging video content faster than ever before and in much more significant quantities.

But accelerating video production doesn’t have to come at the cost of quality. A streamlined approach to creating compelling video content can be easy if you follow three steps.

1. Simplify your production

The barrier to entry with video production used to be enormous. The tools to create the content required special training and a steep learning curve. Today, new video product solutions are designed with intuitive tools and user-friendly interfaces that empower users with no specialized training to generate and air studio-quality content much more quickly.

Although sophisticated content should still have a place in your content calendar, breaking news waits for no one, and being the first to air with critical information can be a valuable advantage for grabbing viewers’ attention. In addition, you can go live quickly when severe weather strikes or threats to public safety. Finally, equipping your team with tools to create these videos will remove bottlenecks when posting content.

Also, be sure to find a tool that enables your teams to create videos using their laptops or mobile phones from virtually anywhere with an internet connection. Think of these solutions not as a replacement for professional production workstations but as a way to extend their capabilities. The tools often use a browser-based interface and cloud capabilities to access content, graphics, and production tools remotely, allowing users to report on breaking news and weather stories immediately.

2. Use pre-created templates

A repository of professional and pre-created templates can help you quickly publish updates using high-quality videos that engage audiences and build trust. Simply populate these pre-made templates with essential information so you can be the first to air when news breaks.

Consider templates that embed a customizable lower-third or brand logo. Also, look for templates that leverage a two-box format showing two speakers or one speaker alongside associated video footage or B-roll.

Alternatively, you can place the speaker in the bottom left corner, as vital information is displayed more prominently in the middle of the screen. Some solutions also offer map templates if your story relates to a specific location or geographical area.

Experiment with different templates to determine what works best across your digital platforms. You can find which templates will extend watch time or increase engagement by testing different kinds of content and formats. This information will help your team as they decide which templates to use when news breaks.

3. Add more voices to the screen

Fake news is an increasing concern for viewers in the U.S., particularly on social media. Adding expert opinions from inside and outside your organization can improve the credibility of your content while increasing overall productivity and driving new monetization opportunities.

Remote broadcasting capabilities make the process of creating meaningful content with new and diverse voices to your content far simpler. With the right tools, you can incorporate experts, thought leaders, and sponsors with the click of a button, regardless of their location.

This approach is effective across content categories. For weather, feature experts from impacted and adjacent areas to help viewers understand the extent of a weather event and respond accordingly. For sports or elections, interview local correspondents to add more context and relevance. You can also offer digital sponsorship packages such as native ads that include sponsor interviews, improve campaign effectiveness, and increase viewer satisfaction. For example, you may include a technician from a local heating and air-services sponsor to share tips on reducing energy usage in the summer.

Adding these new perspectives and insights will also help you produce unique content that may be reformatted and repurposed for different audiences and platforms, generating further revenue opportunities.

Better video starts here

Exceptional video content is essential to any good digital content strategy.

By leveraging these tips when choosing a video storytelling tool, you can accelerate your output without adding resources and attract a bigger audience and more advertisers.

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. He has a Bachelor of Science degree in meteorology and an associate’s degree in computer science from Northern Vermont University-Lyndon.

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