Advertisers are back buying video ads—where are these ad dollars going and what does it tell us about the future of video advertising? MediaRadar is here with the answers. No surprise here, but people like watching videos. So much so that the average person spends more than 2 hours a day watching them. Some estimates predict that time spent watching videos will start to plateau or decline—not because video’s becoming less popular, but because there’s only so much time in the day. However, the popularity of OTT, mobile and YouTube will keep videos around forever.
In 1946, studio executive Darryl F. Zanuck said, “Television won’t be able to hold on to any market it captures after the first six months…People will soon get tired of staring at a plywood box every night.” Boy, was he wrong. If anything, the reason people get tired these days is because they’ve been starting at the “plywood box” too much. To say TV and related technology, like OTT (or “over-the-top”/streaming services) is popular would be an understatement. This year, 1.88b people will use OTT services like Netflix, Peacock, Discovery+ and Paramount+.
What are America’s favorite pastimes? Baseball. Apple pie. Rearranging furniture. That’s right—home furnishing and furniture rearranging is on the rise. Pinterest’s popularity continues to climb; in Q1 2022, Pinterest reported 433mm monthly active users (MAUs). The TV channel HGTV (which focuses solely on home design, redecorating, and remodeling) also was the 9th most-watched TV network in 2021.
Peloton has been on a wild ride the past three years. When in-person gyms closed due to COVID-19, Peloton capitalized on providing an in-home fitness solution. Peloton’s shares were up 220% in 2020 due to the pandemic causing profits to rise. But nearly all of those gains were wiped out last year as the brand had a bumpy ride in 2021 with bad press, class action lawsuits, supply problems among their issues.
According to Furniture Today, the pandemic unsurprisingly fueled consumers’ “home goods” purchases. As pandemic restrictions ease, and even with consumer spending focusing more on experiences and travel, the “homebody economy” continues to flourish. Furthermore, this upward trend in consumer home goods spending is propelled by diminishing supply chain issues; among other factors. Overall, ad spend in the home goods industry should increase in step with consumer confidence in the category.
The American Revolution. Isaac Newton discovering gravity. The Continental Congress adopting the Declaration of Independence. What do all of these events have in common? They happened after Friedrich Jacob Merck took control of the Engel-Apotheke, which would eventually become one of the world’s biggest pharmaceutical companies. If that name doesn’t ring a bell, maybe its current one does: Merck. Yes, that Merck—the same one that reported $48.7b in sales last year.
According to a study by market research firm Mordor Intelligence, the global apparel market is forecasted to record a CAGR of 5.5% between 2020-2025. For apparel and accessories brands, this growth means ad spend increases as well as shifts in spend across formats as brands look to target their ideal buyers. It’s important to note that supply chain, sustainability and authenticity, and diversity representation will be sure to alter the apparel landscape, and subsequently, the advertising outlook in 2022.
Would you take it if someone offered you $3b for something you started building two years ago? Literally everyone on the planet would likely accept that offer—everyone except Evan Spiegel, co-founder of Snapchat, who infamously turned down Mark Zuckerberg’s offer to buy his then-two-year-old app for a whopping $3b. Almost a decade later, it’s clear that Spiegel knew what he had and that $3b was just a drop—no, a penny—in the bucket. Snap Inc.’s (Snapchat’s parent company) current market cap is closing in on $50b and Spiegel is worth more than $6b. How did Snapchat get there?
There are numerous reasons why an advertiser may adjust their media buying, including seasonality, new strategy, change in product focus – the list goes on and on. Sometimes, advertisers just want to try something new and see how it works. Media Buyers within the Consumer Packaged Goods Industry (CPG) are no strangers to shaking up their media mix. The CPG industry saw numerous shifts in advertising investment throughout the pandemic. As the pandemic is hopefully coming to an end, consumer buying patterns are forever changed in some ways, but also continue to evolve.
When Jawed Karim, the co-founder of YouTube, posted the now-infamous video of himself at the zoo in front of two adorable elephants, there’s no way he could’ve predicted the meteoric rise of his creation. If you would’ve asked him in 2005 how many monthly active users YouTube would have in 2022, there’s no way he would’ve said more than two billion. If you questioned him about the amount of video people would upload to YouTube, 500 hours a minute probably wouldn’t have been on the tip of his tongue.
Since launching in 2007, Hulu has made a name for itself with an ability to offer a seemingly endless stream of premium content, including the likes of It’s Always Sunny In Philadelphia, The Handmaid’s Tale and a variety of titles from the Marvel Universe. Outside of Netflix, Hulu is arguably the biggest name in OTT. As of Q4 2021, Hulu had 43.8 million paid subscribers. (Netflix reported 221.8 million paid subscribers at the end of Q4 2021.)
Are you wondering where CBS All Access went? It didn’t go anywhere—it just became Paramount+. On March 4, 2021, ViacomCBS launched Paramount+, the rebranded version of CBS All Access. With the rebrand, Paramount+ began its uphill battle to attract both consumers and brands. But was it too little too late, especially for a streaming service on its second life? Maybe not. With 32.8 million subscribers at the end 2021 and $55 million in ad buys, Paramount+ might be onto something.
Talk to any Gen Zer and ask them about the last commercial they saw. Chances are they don’t even watch cable. Gone are the days when you were forced to watch “whatever’s on”. Now, we live in the golden age of video content with endless options of digital entertainment available to watch whenever, however, and wherever we want. When the COVID-19 pandemic hit and museums, malls, and other outlets shut down, the need for entertainment at your fingertips boomed, and with it, the number of digital streaming options to choose from.
It’s been more than two decades since Netflix’s founding and more than a decade since Hulu and Amazon Video entered the picture. However, it wasn’t until the last two years that the streaming world really started getting crowded. We can attribute a lot of that to the push from media companies into the OTT world, with the likes of Disney+, HBO Max and Paramount+ all fresh off their launches. One media company was slower to join the movement: NBCUniversal (NBCU). That changed in 2020 when NBCU introduced Peacock and began its quest to attract both consumers and advertisers away from other platforms.
In January 2021, the world’s largest collection of non-fiction content became available to the masses. Discovery+ was here. Since then, Discovery+ has attracted a respectable audience, surpassing 20 million paid subscribers by the third quarter of 2021, which exceeded internal targets. To help propel it to this point, Discovery+ launched a partnership with Verizon that gave select customers 12 months of Discovery+ for free. Like most new streaming platforms, Discovery+ is built on an ad-supported model. On launch day, advertising partners included Kraft Heinz, Lowe’s and Toyota.
When Neil Young pulled his music catalog in protest, he set off a series of events that few could have anticipated. Since then, Spotify has been caught in a maelstrom of public outcry, trending hashtags (#deletespotify), musician exits, and account cancellations. It can be hard to tease apart the impact this is having on Spotify’s business, but with tools from Similarweb Digital Suite, we can take a deeper look into just how wild of a week Spotify had from January 24 to January 30.
It’s not TV. It’s HBO. The retired slogan still rings in our ears. HBO elevated original content before it was cool. But for years, brands couldn’t take advantage of the company’s massive audiences. This changed last year. HBO Max entered the advertising-based video on demand (AVOD) landscape. With its content, limited advertising and affordable pricing, HBO is trying to take on the biggest players: Netflix and Disney+. But unlike these other leading OTT platforms, HBO Max has advertising spots that can help media planners and brands get in front of targeted audiences.
Do you typically show up to a Super Bowl party ready for football, food or advertisements? If you’re like us, you pay more attention to the advertising strategies than what’s being dished out on the field. And it’s not just because the commercials are hilarious or captivating. The average NFL regular season game earned a mere 1% of what the 2021 Super Bowl raised. This is arguably the biggest media event of the year.
Podcasting is still one of the youngest forms of media—but that doesn’t mean it’s not a great advertising investment. The number of podcasts is growing quickly, and people are taking notice. In 2006, only 22 percent of the adult population in the United States knew of podcasting, according to Statista. Last year, that number climbed to 78 percent. And it’s no surprise—listeners with any niche hobby or learning interest can find something to enjoy.
Despite chip shortages and factory closures, top consumer electronic producers had strong sales this year. According to the latest report by Global Market Insights Inc., the market valuation of consumer electronics will cross $1.5 trillion by 2027. Trends that will mark this sector next year include: a push for smart devices, more energy-efficient products, and investment in other sustainability practices. With the steady growth in the electronics market, it’s a great time to pitch top brands who invest heavily in advertising.
