With 2018 in the rear view mirror, Video Insider decided to reach out to some of the smartest people in video advertising to try to figure out what this year will bring for the business.
Digital and streaming video continues to accelerate at a rapid pace, both in terms of consumer adoption, advertiser adoption, and technological change.
If the news that has already trickled out of the Consumer Electronics Show in Las Vegas is any indication, 2019 is already poised to be a big one for the world of video.
Mark Zagorski, CEO of video ad platform Telaria:
“How much of [the streaming video market] will become ad-supported, versus subscription-based, which is what we have today?
We think that the ad-supported model is going to become the model for that business moving forward, not because it is self-serving -- obviously it is -- but because of the amount of subscription fatigue that is starting to set in when you have so many subscriptions and you only watch one program on each of these things. That is going to be a key part of how the ecosystem is going to change.
I think Amazon is probably the first one that is going to crack it because, having an ad-supported business, they know the business… There are many reasons for them to move to Long Island City, but I am sure one of the top five on that list is the fact that they wanted to be closer to the media/advertising community that will be powering their business going forward.”
Andre Swanston, CEO of video management and intelligence platform TruOptik:
“Back when MTV was on the rise the slogan was 'I want my MTV." In 2019 I feel like imploring 'don’t dumb down my CTV.' Linear TV is measured via ratings which estimates how many people watched a TV show. The only reason it matters is because it is an indicator of how many saw the advertisements that ran at that time. Every week, more and more households consume a greater percentage of their TV time-shifting to CTV.
And with CTV, a greater percentage of the shows -- no matter when they are watched -- will have different ads tailored specifically for that household. This means the old system of ratings for shows becomes less and less relevant as a metric for advertisers to gauge reach.”
Mark Gorman, CEO of sales and analytics intelligence platform Matrix Solutions:
“[2019 will bring] more paid content. Like everything in this world, when it works for one, everyone else thinks it will work for them.
Today, it is estimated that 75% of streaming video is accessed through four services -- Netflix, Amazon Prime, Hulu and YouTube. The first two are for pay/no ad services (though Amazon is pumping me full of promos) and the second two can be paid for/ad-free. We know everyone else, including my grandmother who has been dead for twenty-plus years, is rolling out and planning a paid service. Most, if not all, of them will fail. Viewers will begin to suffer Netflix fatigue.”
David George, CEO of video ad platform Pixability:
"We'll see most marketers and agencies at minimum dipping their toes in OTT by trying YouTube campaigns on TV because that's an easy transition from what they're used to doing on YouTube itself. The leading-edge companies will take more significant leaps in trying multiple OTT channels, mostly for campaigns where views are the ultimate goal.”
Michael Beach, CEO of marketing analytics firm Cross Screen Media:
"A SVOD provider (Netflix, Amazon, etc.) will offer some type of intro package that is monetized through targeted advertising. This is one of the factors keeping digital video spend down since so much of the viewing time is ad-free. For example, 45%+ of CTV/OTT viewing is on either Amazon or Netflix. If any of that shifts, then that will open up a huge amount of ad inventory.”
Pablo Hesse, CEO of OTT video infrastructure provider Teltoo:
“What is happening, and what will happen in 2019, is more and more and more of these competitors -- the Disneys of the world and Comcasts of the world and so on -- are going to buy more and more assets in order to compete with Netflix, particularly with things like live sports, because that is a category that is missing in streaming.”
Tripp Boyle, senior VP, sales strategy & business development for the AI-driven advertising platform Connekt:
“Consumers use and interact with TV much differently than they did five years ago, or even 12 months ago. There has been a rapid increase in the number of smart devices in the household today. In the U.S. alone, 75% of homes have at least one connected device.
Smart-home connectivity will continue to expand in 2019, leading to a new era of TV advertising in which consumers have the ability to engage with ads across various mediums like voice devices, TVs, mobile and more.”