
"Rising overall investment isn't translating into consistent margin growth for CTV operators and streamers. While Netflix and Amazon continue to increase their streaming ad revenues (given how young their businesses still are), Paramount recorded a 4% drop in ad revenue in the second quarter while Disney's latest earnings release acknowledged a "decrease in average viewership and lower rates" in the United States."
"Just this morning, Hyundai launched a campaign featuring actor Parker Posey toying with the carmaker's Palisade hybrid model. Kate Fabian, director of marketing comms, said the aim is to reach a demographic of female car buyers looking to add more comfort to their commute; Netflix and Amazon Prime will be key channels. "Streaming allows you, at any given time, to talk to an EV audience, talk to a sedan audience, talk to an SUV audience. You're able to get smarter with your dollars," said Fabian."
"It's a familiar story, one shared by marketers like Sarah Bertrand, head of PR and communications at Pure, a dating app looking to broaden its foothold in New York and Los Angeles. She told Digiday the app is running ads on streaming platforms like Max, Paramount and Roku. "We saw the opportunity to really target a broader audience that might not be doom-scrolling, that might be more attentive," she explained."
"While brands like Hyundai shift more of their linear spend into streaming each year, brands like Pure - previously priced out of linear - are taking advantage of its comparatively lower barrier to entry. "Because there are fewer barriers ... a larger number of brands are able to enter the streaming space and reap the benefits of a premium placement," said Olivia Hawkins, vp of"
Overall investment in CTV and streaming is increasing but that investment is not delivering consistent margin growth for operators and streamers. Netflix and Amazon are growing streaming ad revenues, while Paramount reported a 4% ad revenue decline and Disney cited decreased U.S. viewership and lower rates. Most marketers and media agencies report steadily increased spending on streaming and CTV advertising despite difficult economic conditions. Brands like Hyundai are reallocating linear budgets to streaming to target specific audiences, and smaller brands like Pure use streaming platforms to reach more attentive viewers. Lower barriers to entry are enabling more brands to advertise on streaming channels.
Read at Digiday
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