$15.2 billion. This is the amount spent by advertisers in advertising formats in connection with video streaming. This market should even double between 2022 and 2022. This proves that advertising on connected television appeals to advertisers, who tend to abandon traditional television instead.
The video streaming market is in great shape
These are the results of a study conducted by the IAB. The published report provides an overview of the video streaming market trends. It can be seen that advertising expenditure linked to streaming increased by 57% in 2021, reaching $15.2 billion. According to analysts’ estimates, in 2022 the market could still grow by 39% to reach 21.2 billion dollars. Between 2020 and 2022, ad spend for connected TV is expected to more than double, with 118% growth.
In a dominant position, Twitch could soon run more ads
Eric John, vice president of the IAB Media Center, said in a press release that “Video streaming is a driving force for advertisers and will continue to be in 2022. However, now is the time for brands to follow consumer attention”. Streaming services are multiplying and they offer almost all advertising services. This is particularly the case of Hulu, Peacock, or even Paramount +. Recently, HBO Max and Disney+ announced plans and Netflix could also launch an advertising offer.
Why does this advertising format appeal to advertisers?
It’s because advertisers love smart TV ads so much because they can glean useful data from them. In particular location data, which conventional television does not allow. However, the report shows that the streaming market remains facing many challenges such as frequency management, lack of transparency and interoperability between platforms and publishers. He also points out that fragmented programmatic sourcing was another issue.
The study shows that 88% of brands that buy advertising expect dual coverage (linear TV and connected TV) in the coming years. Same thing for podcasts: the popularity of advertisements on this audio format is increasing. In a recent study, Kantar paints a picture of advertising preferences globally. The podcast is coming to first place on all digital channels combined. According to Kantar: “ads on podcasts are perceived to be both higher quality and more relevant than on other platforms”.