The State of Streaming in 2022: Trends to Guide Your Video Advertising Strategy
Major streaming brands like Netflix, Hulu and Disney+ may grab a lot of the news headlines, but the state of video streaming has expanded far beyond the domains of these well-known companies.
More than 50 different streaming video services are currently available to North American consumers alone, not to mention the proliferation of streaming services targeted to other countries and regions around the world. From subscription-based services to ad-supported platforms, these streaming services aren’t just seizing upon opportunities within the streaming video market—they’re also shaping consumer viewing habits, and changing the video advertising landscape.
Today’s consumers are now watching video on more streaming services and devices than ever before. But this audience fragmentation isn’t a bad thing for advertisers. In fact, your business can achieve better ad performance and ROI by adapting your video ad strategy to the latest trends—and by continuing to refine your ad campaigns as these trends evolve over time.
In a recent webinar, we took a deep dive into the current digital video ecosystem, taking a data-driven approach to understanding how streaming and traditional TV experiences are co-existing alongside one another—and how consumer viewing behaviors are changing in response to an evolving TV and video landscape. Read on for five key takeaways every business should consider when building a video ad campaign.
Traditional TV Still Receives a Significant Share of Advertising Dollars
Traditional TV may not have the video-viewing monopoly it once enjoyed, but broadcast and cable television remains a powerful advertising channel that offers value to a wide range of businesses. As of 2021, 99 percent of U.S. marketing professionals expected their addressable and data-driven linear budgets to either increase or remain the same in 2022, demonstrating the enduring value of traditional TV ads.
Streaming video may offer its own valuable advertising options, but new digital channels aren’t replacing traditional TV. Instead, streaming and traditional TV are more often complementary elements of a broader video advertising strategy, offering diverse advertising options to help businesses optimize their spending and their advertising outcomes.
The Digital Ad Market Has Remained Resilient Against the Pandemic and Inflation
Over the past few years, virtually every industry has been assailed with disruptions related to the pandemic, supply chain issues, inflation and fears of a possible economic recession, among other events. In the face of this volatility, though, digital advertising has not only weathered the storm—it’s become a ballast for businesses seeking stability and value for their advertising strategy.
Digital ad spending continued to grow throughout the pandemic, and spending growth is projected to continue for the next four years. If your business is concerned about volatility in the coming years, investments into digital ad campaigns may be a reliable, low-risk option to fund business growth during a period of uncertainty.
Connected TV is Driving Video Advertising Growth and Shaping Video Viewing Trends
When it comes to understanding consumers’ video viewing habits, it’s impossible to talk about streaming without talking about the role of connected TVs. Connected TVs offering extensive app stores are making it easier for consumers to diversify their video viewing experience across a larger share of streaming apps.
Make no mistake, the big streaming giants continue to dominate advertising market share when it comes to digital video. Hulu, for example, draws upfront advertising spending from nearly 80 percent of U.S. brands. But smaller, emerging players are gradually claiming space in this competitive market, creating new advertising opportunities that create an advertiser-friendly market.
Alternative Social Streaming Platforms are Cutting Into YouTube’s Market Share
YouTube has long been entrenched as the leading social video platform for digital advertisers. Although YouTube isn’t going anywhere as a go-to video advertising destination, upstart competitors like TikTok have quickly emerged to challenge YouTube’s dominance while giving consumers highly engaging video alternatives.
In the first quarter of 2022 alone, YouTube’s ad sales were more than half a billion dollars lower than industry expectations. As consumers embrace short-form video content, YouTube’s Shorts trailed TikTok significantly in terms of consumer popularity, by a margin of 48.5 percent to 25.3 percent. Instagram’s Reels isn’t far behind, with 20.1 percent of consumers preferring Reels above TikTok and Shorts. These new video formats and social video platforms are an opportunity businesses should be accounting for in their video ad strategy.
Streaming Service Packages Will Eventually Resemble Cable Bundling
As the streaming video landscape continues to grow more saturated, packaged apps and services are an inevitable result. Brands and apps will look to consolidate or be bundled together to increase and stabilize revenue across these streaming alliances, similar to how cable TV bundles were structured in the past.
Disney has already brought this kind of bundle to the market with packaged subscriptions available for Disney+, Hulu and ESPN+. As bundling becomes more commonplace, it will create larger, more integrated ad inventories where savvy businesses can seek out cost-effective ad campaigns that deliver better ROI.
Ready to build video campaigns informed by the latest video viewing trends? A digital advertising partner can help your business elevate its advertising strategy with the latest best practices and a data-driven approach to maximizing campaign ROI. Contact us today to find out how we can help.
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