QOW #1 – How will increased ad supported streaming change the free TV ad experience?
“We will see changes in both process and presentation. Fewer interruptions during programming, longer messaging around it or even on other platforms and channels all of which could bring about the next creative revolution.
First, though, it’s important to acknowledge that any changes in the streaming experience will be based on data-driven experiments, and will be gradually adopted across the industry.
The revolution is now underway on the content side. Just look at the techniques streamers are using to enhance the watching experience. One of the key success factors in Netflix’s take-over of stream/video consumption is their smart and accurate data-analysis: who’s watching what, what content suggestions work, how to improve the relevancy of the stories they offer, and even more recently of the shows they produce as they move up the value chain.
From a presentation standpoint, we’re already seeing changes in the format of the programs themselves, including shorter, more impactful videos. We’re also now able watch a show at 1.5x the speed of the regular frame, for an accelerated binge. This creative evolution of content will be followed by an advertising evolution. More sponsored content? More native-like ads? Accelerated Pre-Roll? Hulu has already launched an “ad-binge experience,” enabling users to have an ad-free episode after watching a sponsored format.
It’s only the beginning
From a process perspective, we also will need the tools to make educated decisions as to how highly enjoyable content-consumption and tailored advertising can co-exist. This will involve a ton of innovations upstream on the advertiser / agency side to come-up with more “snackable” yet impactful ad formats.
On the publisher side, this will require a stronger data-driven approach to monetization. Step 1 will be to utilize audience segmentation to improve ad relevancy…so no more pet-food ads if your anonymized ID doesn’t match the pet-owner segment.
At the same time, I believe the emergence of CTV specific measurement tools will fuel an efficient feedback loop between audiences, publishers & advertising to design the future of TV content – and ad formats.
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