In fact, the analyzes already point in another direction and make it clear that the war, in the streaming market, will be for something else. The battle ahead will be that of advertising. The ad war the classic players in the streaming market offer paid services that keep the experience free of ads. Theories about when they will have ads and how they will have no choice but to incorporate them are recurrent, especially in the case of netflix. The platform has already made it clear that it will not incorporate ad breaks, although that does not mean that the potential for advertisers has been limited.
Streaming platforms could simply change the way we receive advertising and usher in a new golden age of product placement . And, even if they are not traditional ads, the battle will be in the conquest of the advertiser. This is what they make clear in an analysis published by fastcompany . Some of the market players have already made Austria phone number moves. Hulu is experimenting with ads, and the us giants that will launch their platforms in the spring are already laying the groundwork (their services will carry ads). One of the ad formats they are experimenting with are those that are served when the consumer pauses the broadcast (this is what at&t is doing from its ad tech arm xandr). The ad is not intrusive and therefore not annoying and the consumer, they say, sees it.
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That companies are doing things isn’t the only clue that points to an upcoming battle for ad revenue. As you remember in the fastcompany analysis , the business model of streaming platforms is still too questionable and unproven. The success stories have a significant economic burden (disney assumes that it will lose money in the years of disney + and netflix has a debt of 12,000 million dollars that it has allocated to content). Therefore, advertising is not seen as something so terrible. To this they add that brands want to invest in advertising: the investment that tv was taking has to end up somewhere else.
If audiences migrate to other platforms, advertisers will have to migrate to them.The game is done, the cheat is done. Online advertising has become the great advertising market. In which it is growing most notably and in which it is taking over the income that. Until now, was in the hands of traditional media. Television, for example, has lost momentum in recent. Years and has seen how advertisers were thinking much more about allocating. Part of their budgets to their advertising. Meanwhile, the network did not stop growing. But the growth of online advertising is not without problems.
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The boom in programmatic advertising has in turn created new spin-off problems. Since everything is left to algorithms and there is no granular control. Of what is happening, advertisers are faced with a situation where they. Cannot control as much as they would like where their ads appear. They do not always end up in quality media or in those that. Would interest them the most (the algorithm focuses on the target market they want to reach). And even sometimes they have to face problematic . Situations (when the ads appear in content that is not the most suitable for your brand image).