What was once seen as a Netflix monopoly has turned into a landscape of wide competition involving major studios for as many subscriptions as possible to their own streaming services. A side effect of the boom in this segment, with the emergence of new players, can be seen in the platform’s recent announcement, accounting for the loss of subscribers. For specialists, this is a sign that this market is beginning to be pressured to seek new forms of monetization.
This is precisely where advertising is strengthened as a viable alternative to increase the profitability of these new digital content channels. But the chances of converting digital ads into streaming video can be higher on content that is more niche, classified into certain categories or aimed at a specific audience. This is because they allow advertisers to map their audience and understand more assertively which products and services to offer.
An example is Rakuten Viki, a leading streaming platform 100% focused on Asian content and with a global presence, including in Brazil. According to one search According to the Ministry of Culture, Sports and Tourism, Brazil is the third country in the world that most consumed dramas (TV series produced in Asian countries) during the Covid-19 pandemic. Rakuten’s platform even listed the 10 favorite dramas of Brazilians – the first place went to the South Korean “Beleza Verdadeira”.
This large audience can be very well exploited by advertisers. Connected TV (CTV) enables effective delivery of new advertising formats that utilize interactive ads. Even the use of QR Codes is among these possibilities. According to a Nielsen study, 59% of responding viewers usually scan the QR Codes displayed in advertisements on CTV.
The consumer’s predilection for streaming is another key factor that justifies the investment in advertising in this medium. In Brazil, more than half (56%) of viewers already prioritize video on demand over open TV, according to a survey by Rakuten Advertising. And the consumption of this service continues to grow. A report from the Conviva platform pointed to a 10% growth in minutes watched on streaming in the first quarter of 2022 alone.
In Brazil, the market shows great potential for development, with a highly engaged public. Here, according to Rakuten Advertising, 81% of national viewers remember the ad within 24 hours of contacting the streaming advertisement. The same percentage is repeated in the conversion generated after the impact, as 81% of Brazilians buy or occasionally buy a researched product or service after seeing an advertisement onvideo on demand.
This is how streaming creates market opportunities for brands and advertisers, establishing a mutually beneficial relationship with advertising. While brands have the opportunity to map their audience with a delivery more prone to conversion, TV Conectada finds new ways to generate profit beyond the subscription model – which today already shows signs of vulnerability.
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