2018 has been another big year for advertisers, marketers, media companies, publishers, and ad tech providers. We saw the continued growth and adoption of over-the-top advertising, the dominance of mobile ads, and the transformation of the TV marketplace.
But if there’s one thing that’s clear about the ad tech industry, it’s “change” – so, you can expect a whole lot of change in 2019.
We’ve compiled the following facts and trends to help you refine your 2019 strategy. Keep reading to build your digital expertise and get ready for a rewarding 2019!
Time spent with digital media will overtake traditional media this year, driven by digital video consumption.
Behind the increase in time spent with digital video is an abundance of long-form content. Over half of the U.S. population will use a subscription OTT video service like Roku or SlingTV in 2018, as per eMarketer’s forecast. As these services expand their libraries, consumers are spending a greater amount of time viewing the content they provide. By 2020, adults will spend 1 hour and 38 minutes watching digital video on average.
As viewers adopt digital video consumption habits, including watching OTT content, our industry is also seeing a decline in time spent with content on traditional TV. The data makes it clear that viewers are willing to give up TV time in favor of newer formats, and will continue to abandon traditional TV over time.
The number of U.S. connected TV and OTT video users is growing at rates that exceed the previous forecasts made by eMarketer. This growth is led by smart TV adoption.
Like the video viewer and cord-cutter categories, connected TV viewers are also experiencing faster-than-expected growth. According to eMarketer, by 2022, there will be 204.1 million connected TV users in the U.S, up from 182.6 million in 2018. The percentage of the population that uses connected TV is also growing, rising to 60.1% from 55.5% during the forecast period.
Connected TVs, and other OTT devices like Roku, are the leading method of digital video viewing, especially for long-form content.
As per eMarketer’s report, connected TVs and set-top boxes have taken the lead as the primary method people are using to view digital video, taking up 25 minutes of viewers daily time spent with digital video on average. Consumers prefer to watch long-form content on a big screen.
OTT ads on connected devices give audiences similar end viewing experience as ads on traditional TV.
OTT advertising delivers impressions in a TV-like environment, but with a higher engagement rate spurred from digital capabilities like targeting. Since OTT viewers actively select the show they want to see at the most convenient times for them to watch, they are less distracted and they’re not channel-surfing.
Additionally, unlike cable, OTT offers new and better opportunities for audience targeting, allowing for more efficient delivery of ads to a selected audience set. If you’re a TV ad buyer, you can’t skip adding OTT advertising to your sales portfolio as a part of your comprehensive media strategy in 2019.
Unlike on the desktop or mobile browser screen, OTT video ads tend to be displayed full-screen without the controls to either minimize or skip them. OTT devices aggregate a viewer’s favorite content in a single location, providing a one-stop shop for premium video. Thus, OTT format holds advantages for advertisers — the large screen is intrinsically viewable and the living room environment leads to higher engagement, typically averaging 97% video completion rate (VCR) or higher.
Media companies and advertisers have to be open to dynamic collaborations and partnerships with digital providers. As video storytelling evolves alongside viewer consumption habits and technology, successful TV revenue models in 2019 will leverage the combined powers of linear and OTT and provide advertisers with relevant metrics to measure impact.
For advertisers and marketers looking to access cutting-edge marketing technology, ZypMedia promises the full package. We help media companies, advertisers, and marketers plan and execute their digital advertising campaigns.
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