Can AVOD catch up with the hype? ; E-Commerce Is Priceless – No, Seriously

0

Here’s today’s roundup of AdExchanger.com news… Want it by email? Register here.

Hope and Pr-AVOD

There is currently a lot of interest in ad-supported video on demand (AVOD). Virtually every ad tech company is banking on CTV to overtake web display.

After all, it is thought, consumers cannot simply keep paying for more and more ad-free servicescan they?

But it’s time for reality to catch up with the hype.

AVOD was a $1.3 billion category in the United States last year, according to a new report from MediaRadar. This number may increase, but also represents only 3% of online ad spend.

YouTube, Amazon, and Roku have a lot of CTV inventory, but they’re also building taller and taller garden walls around their platforms.

The big five AVOD players — HBO Max, NBCUniversal’s Peacock, Discovery+, Hulu and Paramount+ — account for two-thirds of ad spend. With virtually the entire ad ecosystem on the wagon, that’s a lot for five horses to pull.

Too many companies are banking on too much CTV growth for apps like HBO Max, Paramount+ and Peacock to meet those demands, even as the apps take off.

And speaking of these apps that are taking off, “media” is by far the industry that spends the most on AVOD advertising, while linear TV indexes are higher for pharmaceutical, food and automotive. In other words, AVOD is skyrocketing right now from media, entertainment, and tech companies promoting their own apps and new shows. Can it last?

If you have to ask, you can’t afford it

Thousands of American households received a catalog of toys and gifts from Amazon over the holidays. It’s hardly shocking. Corn The New York Times reports that many shoppers were surprised to discover one thing the catalog was missing: prices.

I mean, come on, we don’t buy yachts here.

But the lack of price tags in Amazon’s gift catalog points to important trends in e-commerce and advertising.

On the one hand, pricing has become more closely tied to supply chain data and factors such as advertising, as brands focus on profit margin management rather than targeting sales at a specific price. This is partly why many in-store retailers and brands have been able to increase profits despite supply chain price increases. They fewer Black Friday-style discounts and dynamically increased prices between retailers.

Food and household goods that were priced stable “now fluctuate and, at times, are subject to price spikes more commonly found in ride-sharing services. And popular Lego kits or products that can quickly go from plentiful to out of stock (looking at you, toilet paper) are subject to “Bitcoin-like” price volatility.

carbon call

Monday, the SSP Magnite acquired Carbon, a revenue management platform that publishers use to track and attribute campaigns.

Carbon is a convenient point solution for supporting seller-defined audiences, which is all the rage right now because inventory sellers have a lot of bargaining power in the land of CTV. Stream viewers are a goldmine of first-party data for publishers to create unique audience segments and help with addressability.

The move also makes sense for Magnite, as it airs entirely on CTV, which now constitutes a third income from the SSP.

“Carbon’s technology will help build the [very] foundation of the omnichannel audience building tools we develop at Magnite,” a Magnite spokesperson told AdExchanger.

Carbon is a small acquisition, but one that could help the company continue to demonstrate its value (ie, return on investment) as a CTV and video ad server.

As CTV’s honeymoon phase fades, advertisers will demand more control and transparency in exchange for the relatively high CPMs they will have to pay for CTV. Publishers and their SSPs realize that power (and money) will only accrue to those who can prove they have reached a particular audience or generated a business outcome.

But wait, there’s more!

Eric Seufert on the economics of advertising auctions. [Mobile Dev Memo]

Insider and Axel Springer are backing a new podcast company called Spooler. [Axios]

Has TikTok made books cool again? [Insider]

Speaking of TikTok, the platform now supports 10-minute videos. [The Verge]

Here’s Whole Foods’ complete amazonification. [NYT]

And here are all the ways Google is under surveillance because of its privacy standards. [Bloomberg]

You are engaged!

Weber Shandwick selects Ridhi Malhotra of Zenith for a leading analysis role. [MediaPost]

Share.

Comments are closed.