In recent years, there has been a flurry of new video services subsidised in part or entirely by advertising, many with a focus on delivering less advertising per hour than regular television broadcasts. Streaming services like HBO Max in the US, for example, boasted some of the lowest commercial ad loads when they first launched.
This controlled, nuanced approach does not mean marketers sacrifice their ability to engage with viewers. Ads can have a bigger impact when done in a more targeted way if they’re done right — ideally by combining powerful creative messaging, and smart data-driven decisioning.
In fact, 74% of consumers appreciate brands lowering the ad load, according to research. And brand outcomes are even more positive, with these ads showing a 37% increase in unaided recall and 21% increase in brand recognition.
And it’s not just in streaming. There is a wider trend towards a more thoughtful approach to advertising across many tech platforms in 2022 — whether it’s web, gaming or streaming.
This is driven by a range of factors, but a few key themes are:
- Normalisation of multiple revenue streams for pubs, such as subscription streaming with fewer ads, or games featuring in-app purchase
- Emergence of new ad models such as value exchange or rewarded advertising
- Awareness of non-intrusive ad opportunities like native in-game or DVOOH
- Consumer fatigue with ad clutter and withdrawal from old Web2 platforms such as Facebook
- Increased regulatory pressure around data-driven ad monetisation and the ad monopoly businesses
- Impact of ad-blocking and industry “better ads” programs
Expect an acceleration in this trend over the next few years, and an overall reduction in ad clutter — resulting in better online consumer experiences, especially as Web3 tokenisation begins to take off.