Deep-dive Into Types of Video Content Monetization
March 15, 2018
While subscription-based models have been the traditional revenue stream for OTT and streaming companies, ad-supported streaming services have gained in popularity and are becoming more mainstream. These services offer a broader reach to users who are hesitant to pay for content, making them a compelling alternative to subscription-based models. By tapping into a wider audience, marketers and advertisers can increase the visibility of their brands and products, which can ultimately drive revenue growth.
Below are several factors and market insights :
- Popularity of streaming services: Streaming services are becoming increasingly popular among consumers, and as more people cut the cord from traditional cable TV, the demand for streaming content is only expected to increase. With this growth, ad-supported streaming services are poised to gain traction as a way for consumers to access content for free or at a lower cost.
- Changes in consumer behavior: As more consumers shift towards ad-supported streaming services, advertisers will be able to use targeted ads to reach specific audiences. This means that ads will become more relevant and less intrusive, which is likely to lead to a more positive user experience.
- Advancements in ad targeting technologies: Advertisers are now able to use data and analytics to target their ads more effectively. This means that ads can be tailored to specific demographics, interests, and behaviors, making them more relevant to the viewer. This, in turn, makes it more likely that viewers will engage with the ads and respond to the call-to-action.
- Lower barriers to entry: With the advent of new technologies and platforms, it is now easier for content creators to launch their own ad- supported streaming services. This means that there will be more options for consumers to choose from, which will lead to increased competition and innovation.
- A survey by Hub Entertainment Research found that 46% of US consumers would choose an ad-supported streaming service if it was cheaper than a subscription-based service, while only 9% would choose a subscription-based service if it was cheaper than an ad- supported service.
- Ad-supported streaming services are also becoming more popular with younger audiences. A survey by Deloitte found that 70% of US millennial prefer ad-supported streaming services to paid subscriptions.
