Direct-to-consumer streaming services make up 45% of ad views by distribution platform, edging ahead of TV Everywhere, which held the majority share versus the same time period last year, according to FreeWheel’s latest “Video Marketplace Report”.
This growth is fed by the introduction of new services including Discovery+ and Paramount+, which were launched in January and March 2021, respectively. HBO also introduced an ad-supported tier of its HBO Max offering, breaking away from its traditional commercial-free approach. “The proliferation of subscription and advertising-supported streaming services further perpetuates the complexity and fragmentation of viewing choices, for both the consumer and the advertiser,” the report says.
Connected TV (CTV) remains a top choice for viewers with 60% of ad views. This comes as no surprise as consumers are opting to view on bigger screens and spending more time streaming content. Roku and Fire TV devices continue to lead the market with 43% and 26% of CTV views, respectively.
At the same time, the entertainment vertical continues to lead the premium TV video ecosystem, with 92% of ad views. As streaming services double down on content, there are two schools of thought: those who diversify and those who specialize. For example, Paramount+ and Peacock offer consumers diverse content ranging from sports, comedies, dramas and movies. Meanwhile, others are focusing on a specific vertical, such as WarnerMedia’s approach to have HBO Max dedicated to entertainment and spin CNN into its own service with CNN+, launching in 2022.
Similar to linear TV, digital platforms offer diverse content to appeal to a broader consumer base, with 51% of ad views driven by live, with long-form on demand not far behind at 37%. Live 24/7 content feeds are the cornerstone of the FASTs model and have become popular with consumers since they are free, have a large offering of diverse channels, and have a limited ad load. According to a recent consumer survey, 20% of respondents would be interested in using free platforms to replace their paid subscriptions.
“New technology, political tensions and a global pandemic in 2020 transformed and accelerated how people access, consume and respond to media and advertising, and we’ve seen this evolution continue into the first half of 2021. Advertisers, marketers and their content, distribution and technology partners can expect the change that was spurred in 2020 and is persisting into 2021 to continue, if not accelerate. Changing consumer viewing and buying behavior will push the continued evolution of data capability, accuracy and availability,” the report concludes.
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