On today's episode, we discuss what our analysts think will be the key digital trends of 2022. Where we stand with our digital advertising outlook, how far the pendulum will swing towards AVOD services, when TV and video ad measurement will cease being a hot mess, and more. We then talk about whether video streaming growth has officially stalled and if Univision can bring the immediacy of digital measurement to TV ads. Tune in to the discussion with eMarketer principal analyst at Insider Intelligence Paul Verna.

The UK digital ad market is thriving. It will grow 11.9% this year, reaching £25.84 billion ($35.54 billion). Video will be a big contributor to this growth, as will social network spending, which is being disrupted by the likes of TikTok.

Ad-supported video-on-demand (AVOD) platforms saw strong growth in ad revenues last quarter, a bright spot in the overall ad market during the pandemic.

More video viewers turn to ad-supported video-on-demand (AVOD) and free streaming options.

There’s a glimmer of hope for growth in ad-supported video. There’s no evidence of subscription fatigue in the video space so far, but a cost-of-living crisis might change that. During the pandemic, people with lower incomes flocked to subscription video-on-demand (SVOD) services. There may be a pinch coming due to rapid inflation, and ad-supported VOD (AVOD) could stave off an exodus.

Advertisers and platforms identify Hispanic media as a growth opportunity: TelevisaUnivision, NBCUniversal, and Canela are among the players looking to strengthen their relationships with this demographic group.

AVOD grew by 38.6% in 2019 and 30.3% in 2020, and while growth is slowing, it remains in double digits. Over 50% of US internet users will be AVOD viewers by 2024. Looking ahead: Digital video viewership growth has slowed as numbers remain high.

Pandemic-fueled ecommerce growth propelled sponsored product and brand ad business

The health of the digital ad market is also reflected in a pendulum shift toward ad-supported video-on-demand (AVOD) services, despite the continuing strength of subscription-based services. Even addressable TV advertising is on a growth path despite softness in the overall linear TV market.

The number of US users watching ad-supported video-on-demand (AVOD) will surpass 140 million in 2022, up 8.6% YoY. In all, we project two-thirds of the US population will watch CTV content in 2022. That figure is about 14 percentage points higher than it was five years ago. We project a 33.1% increase in connected TV (CTV) ad revenues for 2022, to $18.89 billion.

“As people were encouraged to stay at home, the growth of ad-supported video on CTV greatly accelerated, with YouTube consumption accounting for a major part of this,” said Ross Nicol, vice president of EMEA at video ad platform Zefr.

While traditional TV ad spending will struggle for growth in the coming years, digital video will not. A portion of digital video spend will go to the nascent CTV space, but traditional broadcasters are also developing their own streaming services (with BVOD ad spend rising at a far faster rate than traditional TV spend). Overall, the advertising opportunity for CTV remains small.

First is the growth of ad-supported video-on-demand (AVOD). MoffetNathanson Research found that five leading AVOD platforms saw revenues grew a combined 31% YoY in Q2, albeit from a smaller base than subscription video-on-demand (SVOD) platforms have. “AVOD skews more to mobile than SVOD networks,” said Tal Chalozin, co-founder and chief technical officer of digital video advertising company Innovid.

This escalation is driven by increased cord-cutting, more time spent on CTV, device companies like Roku and Vizio doubling down on their ad businesses, and the proliferation of ad-supported video platforms despite continued momentum in subscription-based ones. Yet another contributor is Amazon’s increasing focus on CTV as it grows its share of the US digital ad market.

Even so, some companies managed strong growth, including AVOD services and social media networks. In-app purchases and subscriptions had very strong growth over the past year. Hybrid ad and IAP models have proliferated over the past few years, with ad revenues growing more quickly than IAP revenues. But in Q3 2019, this began to reverse.

Linear TV advertising is no longer a growth sector, but the addressable portion is. We expect US linear addressable ad spending to reach $4.22 billion in 2023, up from $2.85 billion in 2021.

On today's episode, we discuss how time spent watching TV is changing, how TV ads favorability stacks up against other formats, and what's contributing to TV ad spending's resilience. We then talk about Paramount+ introducing a new tier with ads, how much time people spend with subscription-based vs. ad-supported video, and how much money are people willing to spend for the video streaming entertainment. Tune in to the discussion with eMarketer senior analyst at Insider Intelligence Ross Benes.

On today's episode, we discuss how Netflix got on in Q2 of this year, why it's getting into gaming, and what to expect from the streaming giant for the rest of 2021. We then talk about people's perceptions of ad-supported video-on-demand (AVOD), what to make of ESPN+ raising its prices, and whether a Peacock and Paramount partnership makes sense. Tune in to the discussion with eMarketer principal analyst at Insider Intelligence Paul Verna.

The number of US users watching ad-supported video-on-demand (AVOD) will surpass 140 million in 2022, up 8.6% YoY. In all, we project two-thirds of the US population will watch CTV content in 2022. That figure is about 14 percentage points higher than it was five years ago. We project a 33.1% increase in CTV ad revenues for 2022, to $18.89 billion.