Five Television and Video Trends to be Aware of in 2021
While some say traditional tv advertising is dying, others believe it is merely going through a time-sensitive transformation. The COVID-19 crisis made change happen faster, and there’s no going back in terms of consumer behavior and advertising spending. Tv and video may look different, but that’s what happens when something is rooted in the current trends and climate of its audience.
While companies faced many challenges in the wake of 2020, they have also made major strides in adapting to what the new landscape encompasses. While there aren’t too many significant surprises in the world of tv and video trends, there are a lot more prevalent themes and strategies we will be seeing in 2021.
A Shift to Streaming
This prediction may seem pretty obvious with Netflix being a household name and new streaming platforms like Discovery+ coming out every few months, but the increase in advertising focus will be very significant in 2021. More consumers tuned into over-the-top (OTT) video and connected TV (CTV) while they stayed at home during the pandemic, and they’ve been hooked ever since. According to ad and analytics company Innovid, 2020 saw a 58% year-over-year increase in impression growth in CTV for January through November. Many companies turned their focus to advertising their streaming services on cable television. Disney spent $135.3 million on Disney-owned networks like ABC, FX, and ESPN to promote Disney+.
The rising demand for streaming services brings marketers a new challenge: to identify the brand across all media and devices. 2021 will see the rise of uniformity from brands when advertising across multiple channels.
OTT & CTV Ad Spends Increase
Advertisers are eagerly following new consumer preferences to streaming services and pumping ad dollars into OTT and CTV faster than ever. Global AVOD (Advertising-based Video on Demand) revenue is projected to double by 2025, growing by 120%, from $24.3 billion to $53.5 billion, and represent about 32% of total revenue. Within that total, SVOD (subscription-driven Video on Demand) revenue is projected to grow 103%, from $48.2 billion to $97.5 billion, and its share of total revenue will remain at about 58%. Download-to-own/electronic sell-through revenue is estimated to grow 62%, from $6.2 billion to $10 billion; and rentals are projected to grow 35%, from $4.7 billion to $6.3 billion.
More Data-Driven Campaigns
Brands are prioritizing measurable opportunities to demonstrate campaign effectiveness and providing tangible consumer outcomes. Audience data is easier to acquire these days, so marketers and advertisers are expected to use it. These data-driven campaigns are playing a bigger role in helping buyers bring a new level of precision to their video advertising. Data accuracy is definitely a trend marketers and advertisers will be following in 2021.
Live video saw a major growth in 2020 as an attempt for brands and influencers to connect to their audience members at home. We saw the introduction of Instagram Reels and the massive following of TikTok become maybe the most significant social trend of 2020. Live streaming video on Facebook gets the best organic reach and engagement, and soon we’ll see this happening to all social platforms that are introducing live video. Brands are seeing better connections when talking to their audience in real-time, and with the unknown future, live video may be the closest we get to connect with our consumers for awhile. By 2021, live streaming is set to become a $70 billion industry.
A Focus on Premium Partnerships
This past year illustrated how brands and media outlets need to better connect to provide more resilient value to consumers. Ivan Markman, chief business officer at Verizon Media says, “For buyers to take full advantage, they’ll need to be able to access inventory programmatically, alongside other media types, including desktop, mobile, [digital out-of-home], audio, [extended reality] and beyond,” Markman said. “Technology platforms will also have to make it easier to plan, buy and manage TV inventory types alongside one another.”