7 Video Advertising Trends to Watch in 2021
/Who’s excited for the new year?
While companies across the industry faced numerous challenges throughout 2020, we also have all made great strides in meeting the changing needs of consumers. The overarching trends we’ve seen thus far aren’t necessarily surprising, though adoption was kicked into high gear forcing advertisers, media owners, and technology providers to adapt their plans.
In 2021, organizations will be able to shift from a reactive stance to a proactive one and purposefully advance their video investments. Our new report, “2021 Global Video Advertising Trends,” details the seven key trends you need to know to plan for a successful year ahead.
Here’s a snapshot of what to look forward to in 2021, and be sure to download the full report for all the insights and predictions.
1. Consumer viewing shifts to streaming
The accelerated shift in consumer viewing habits will hasten the development of a post-cable ecosystem. More consumers tuned into over-the-top (OTT) video and connected TV (CTV) while they stayed at home during the pandemic, and they’ve been hooked ever since.
Notably, viewers around the world are receptive to ad-supported video-on-demand (AVOD) content, with the majority reporting they prefer to watch free content over a paid ad-free service.
2. OTT and CTV ad spend skyrockets
Advertisers are eagerly following new consumer preferences and pumping ad spend into OTT and CTV faster than expected. Global AVOD revenue is projected to double by 2025, outpacing paid subscription growth.
“We know that the role of connected TV advertising is going to become even more important in 2021 and we are expecting more budgets shifting into programmatic pipes. With that, our biggest priority is advanced video planning and cross-screen measurement,” says Esra Bacher, Managing Partner, Programmatic at GroupM.
3. Device manufacturers enter the ad business
Device manufacturers have new opportunities to build their ad businesses, increase market share, and influence the viewer experience. Smart TVs are already the most common way that people watch CTV in the US, Europe, and Australia, and manufacturers are using that scale to launch new offerings for consumers and advertisers.
Device manufacturers are well-positioned to capture a larger share of ad budgets in 2021. In fact, we’ve seen upwards of an 800% spike in smart TV ad inventory from March through October 2020, and these devices now account for 38% of all internet-connected TV spend on the SpotX platform (up from 10% in 2019).
4. The addressable market expands
With programmatic, addressable linear TV is ready for scale. There is a massive opportunity to apply digital technologies and audience data to make broadcast ads targetable and more relevant, and the category is finally taking off.
Evan Adlman, SVP Advanced Advertising & Digital Partnerships at AMC Networks, says, “In 2021 and beyond, as advertisers are looking for the most return for their marketing dollars, the demand for targeted, customized opportunities such as the ones that addressable presents will increase exponentially.”
5. Data-driven, measurable campaigns take priority
Audience data is playing a bigger role in helping buyers bring a new level of precision to their video advertising, and ensuring data accuracy will be top of mind in 2021. Brands are also prioritizing measurable opportunities, including CTV, as demonstrating campaign effectiveness and proving tangible consumer outcomes is more important in the current climate.
“With respect to measurement, the biggest area of opportunity is cross-channel,” says David Dowhan, VP Product & Engineering, Marketing Solutions at TransUnion. Getting it right “requires a people-based identity approach with a comprehensive understanding of household composition and the ability to understand ownership of many different devices,” he continues.
6. Advertisers want programmatic buying options
While advertisers used to treat cable TV and OTT ad buys separately, they are increasingly considering them together, and the trend is clearly moving towards all TV being transacted digitally. Buyers are pushing even further into automated buying and programmatic guaranteed as it offers huge efficiencies and the opportunity to apply data to reach specific audience segments.
7. Advertisers and media owners focus on premium partnerships
This past year illuminated the need for brands and media owners to build more resilient value chains. The concepts of demand and supply path optimization aren’t new, but they have taken center stage due to the volatile market shifts caused by the pandemic. Both the sell and buy sides will prioritize fewer, trusted partnerships.
This article and cited credit goes to:
https://www.spotx.tv/resources/blog/spotxer/7-video-advertising-trends-to-watch-in-2021/