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Retail Industry Updates

New Data Shows a $30 Billion Streaming Advertising Disconnect

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While 69% of sellers believe ad quality on streaming is as good as on linear television, just over half of buyers feel similarly (55%) and only about a third of consumers agree (35%), according to a new report from Conviva, a Foster City, Calif.-based intelligence cloud for streaming media.

Conviva said its inaugural “State of Streaming Advertising” report reveals big gaps in how publishers, buyers and consumers perceive streaming ads, and what this means for the future of the multibillion-dollar streaming ad industry.

“With streaming, there is an opportunity to provide high-quality creative to consumers, but we need to evaluate how and when we reach them,” said Scott McDonald, president and CEO of the Advertising Research Foundation (ARF), a nonprofit industry association for creating, aggregating, synthesizing and sharing knowledge in the fields of advertising and media. “It’s time to move on from 1:1 targeting, with growing concerns over privacy and the challenge of scaling those campaigns, and think about how we can align ads with the content that viewers enjoy and trust.”

Conviva said its research details several areas of the streaming ad industry disconnect including targeting, measurement and quality. Key learnings include:

Better Data and Audience Targeting Will Lead to Monetization

Nearly three-quarters of sellers agreed that streaming inventory can be targeted in a programmatic ecosystem and that effective audience targeting to households exists for direct buys, but less than half of buyers agreed, according to the report. What’s more, 70% of sellers — but just 39% of buyers —agreed they have the data needed to run campaigns on streaming.

Quality of Experience (QoE) is as Important for Streaming Ads as It Is for Content

Fifty-four percent of viewers say they abandon a stream when ads fail completely or take too long to load, while 59% agreed there are too many streaming ads repeated during the same break or episode. Only 36% of viewers were satisfied with advertising on streaming overall, the report found.

Streaming Advertisers Need to Build Consumer Trust

Less than a third of consumers are confident their privacy is being protected by streaming advertisers and publishers, yet 69% of streaming ad buyers and 75% of sellers say they consider privacy laws when building ad strategies and selling ad inventory, the report said.

Measurement Effectiveness Needs to be Conveyed to Sellers

While nearly 80% of sellers think measuring campaign effectiveness is harder on connected TV than other video platforms, only 19% of buyers agree, Conviva learned. Similarly, 70% of sellers feel pixels and ad servers are too limited to deliver advanced ad measurement for streaming, while only 26% of buyers feel the same.

“Ninety-one percent of the world’s population is actively streaming, with consumers spending 47% of their TV viewing time on streaming platforms,” said Keith Zubchevich, CEO of Conviva. “Yet, according to (Big Four professional services firm) PwC, streaming ads represent less than 10% of overall TV ad spend. This delta between eyeballs and dollars represents at least a $30 billion opportunity if publishers provide the targeting and measurement needed to increase sales. It is imperative the industry understand what motivates buyers to shift ad spend to streaming and viewers to keep watching streaming ads.”

The full report can be downloaded here: www.conviva.com/research/state-of-streaming-advertising-2021

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