And how to deal with it…
July 1, 2021
As much of the US escapes from imposed COVID rules, many businesses are faced with some new realities. Current trends are proving that the post-COVID world will look different for quite some time, if not forever.
Share of wallet is being distributed a little differently. Dollars that funneled heavily into on-line retail sales and video services are flowing instead to out of home experiential businesses like restaurants, bars, and movie theaters. Those people with an average of four or more subscription services may unsurprisingly cut video services to free up time and money for face-to-face activities outside the home.
And it’s not just consumers who are changing their behavior. Covid has highlighted and accelerated an important trend in business spending as well. For example, Disney just announced that 40% of ad avails were committed to digital and streaming at the upfronts. Good news for the future of ad dollars in the streaming space, but bad news for broadcasters and those reliant on traditional one-to-many advertising models. Unless, of course, you’re nimble enough to pivot.
This year’s ad upfront season emphasized two important changes. First, the impending end of Covid bolstered higher ad prices as the promise of more new content gives new ways to get in front of key audience groups. The second takeaway is that to get premium ad rates, you have to have very large scale and reach, or you have to provide targeted, personalized ad capability along with all the analytics that goes with it. The new reality is that smaller operators that want to optimize their limited in-line video ad avails must be able to offer personalized ad insertion and tracking that you can only get with Dynamic Ad Insertion (DAI).
Enter Minerva. As evidenced by the recent upfronts, the competition for ad dollars is fierce as the balance begins to shift away from traditional and into digital. Contact us to learn more about how our video platform can help you meet the challenge of the new rules of engagement around video streaming experiences and personalized advertising.