VIDEO ADVERTISING SAW A SHARP DECLINE IN THE Q2 2020

Video advertising saw a sharp decline in the past quarter with ad attempts in Q2 down 28% globally and 22% in the United States as compared to Q1 2020, according to Conviva’s latest “State of Streaming” report, which also details the impact of Covid-19 with expanded regional benchmarks illustrating that while streaming continues to grow overall, it slowed in May and June as compared to its height in April when shelter-in-place orders drove streaming viewing up 81% year over year.

While advertising demand dropped in Q2, due in part to a lack of sports, streaming ads saw significant improvements in overall quality. Viewers spent 38% less time waiting for an ad to start in Q2 as compared to Q1, and as a result, pre-ad viewer-initiated exits dropped 22%. Ad picture quality also improved, with bitrate up 53%.

Despite quality improvements, nearly 45% of ads represented missed opportunities. The most common advertising issue continues to be the lack of demand as publishers try to fill ad slots, but no relevant ad is available.

“Shelter-in-place mandates skyrocketed streaming viewership in April, led by Europe, which saw a 174% increase year over year. Unfortunately, advertising moved in the opposite direction, with global demand significantly reduced due to Covid-19. We expect advertising to bounce back in the coming quarters as the industry and viewers acclimate to a ‘new normal’ including streaming being part of the everyday routine,”  said Bill Demas, CEO of Conviva.

Conviva also uncovered significant increases in viewing as people tuned in natively within their smart TV. Global share of smart TV viewing more than doubled as viewing time increased 239% year over year. Also bolstering television viewing were connected TV devices (Roku, Amazon Fire TV, etc.), which saw a 61% increase, and game consoles, with a 55% increase in time spent streaming year over year.

Data for Conviva’s “State of Streaming” report was primarily collected from Conviva’s proprietary sensor technology currently embedded in three billion streaming video applications, measuring in excess of 500 million unique viewers watching 150 billion streams per year with 1.5 trillion real-time transactions per day across more than 180 countries.