Study: Ad Insertion Placement Costing OTT Publishers Big Revenue

Study: Ad Insertion Placement Costing OTT Publishers Big Revenue
SHARE
THIS



Over the Top (OTT) streaming services offered up by subscription and advertising video on demand (SVOD & AVOD) companies risk significant revenue seepage as a result of a poor advertising experience, new research has found.

New research by Stable Research of 1,000 consumers of streamed video content in Australia found almost 46 per cent  of viewers would switch off as a result of poor ad serving; with a further 28 per cent saying they would only tolerate poor ad insertion if the show were something they were desperate to watch. Only eight per cent would tolerate poor ad serving.

Ad insertion placement costing OTT publishers massive revenue

The research was commissioned by OTT streaming technologies, Australian-based Switch Media, which late last year expanded into the US market off the back of keen interest from global OTT players.

Switch Media co-founder and CEO, Christopher Stenhouse, said while streaming services have taken off throughout the world, the research shows that consumers are unhappy with the way advertising is served across the variety of services on offer.

“Four in 10 respondents had advertising insertion as one of their major complaints of streaming services,” Stenhouse said.  “The only issue that was cause for greater complaints was buffering.

“The dissatisfaction is something we believe is a universal problem particularly where client-side ad insertion is used. With this insertion method, the latency often results in an ad being served too late or too early.

“Server-side ad insertion, such as our AdEase technology, delivers a seamless, TV-like experience that defeats ad blockers and provides a more reliable play out of complete ads, therefore eliminating much ad-frustration by consumers.

“The research is clear; if consumers are frustrated by the way advertising is inserted, they will switch off and, as a result, broadcasters will be forgoing significant revenue.”

The results also showed:

  • Only one-in-five consumers are opposed to advertising being shown on streamed services, with 43 per cent saying while they don’t like advertising, they tolerate it;
  • And most consumers (61 per cent) preferred advertisers to play longer advertising as opposed to a number of shorter adverts.

Stenhouse said Switch Media’s breakthrough AdEase technology avoids the need for a client’s ad enabled media to be re-ingested into Switch Media’s system before delivery to the viewer’s device, unlike other server-side solutions in the market.

“AdEase is platform agnostic to where the media is stored and only makes requests for the required media chunks containing the ad break, at time of playback. This saves the customer hours of ingestion time and related costs,” Stenhouse said.

“Unlike other solutions, our customers have the option to integrate our Universal Player with AdEase to provide a seamless integration that can deliver both HLS and DASH technology across multiple platforms, as well as robust analytics.”

Please login with linkedin to comment

Switch Media

Latest News

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign
  • Campaigns

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign

Canteen’s latest campaign features the combined talents of Director Luna Laure and creative agency Crater. The campaign strives to raise awareness for young people affected by cancer. The awareness campaign centres around Harry Barentson, who at 12 years of age found out his pregnant mum had cancer. While his mother fortunately survived, he lost his […]

AFL Legend Kevin Sheedy Narrates ‘A Love Letter To Victoria’ Via Enthral Partners
  • Campaigns

AFL Legend Kevin Sheedy Narrates ‘A Love Letter To Victoria’ Via Enthral Partners

In partnership with storytelling agency Enthral, AFL star Kevin Sheedy has voiced a video ‘Love Letter to Victoria’ using visuals to showcase the state’s natural beauty and culture. Victoria has been hit with the worst of the coronavirus pandemic compared with any other Aussie state experiencing four lockdowns. Sheedy has partnered with Ethral to share […]

Telstra’s Belong Appoints Howatson + White For Strategy & Creative, Retains OMD For Media
  • Advertising

Telstra’s Belong Appoints Howatson + White For Strategy & Creative, Retains OMD For Media

Telstra’s lower-cost telco, Belong, has awarded its strategy and creative account to Howatson + White, and has reappointed OMD to its media buying account, after a competitive pitch process. Howatson + White will handle strategy, planning, creative and CRM, while former agency Clemenger will continue to have a relationship with Belong, managing PR and retail activation. […]

Coke Releases New Campaign, ‘Turn Up Your Break’, Via Ogilvy
  • Advertising
  • Campaigns

Coke Releases New Campaign, ‘Turn Up Your Break’, Via Ogilvy

Coca-Cola Australia has rolled out its new campaign ‘Turn Up Your Break’. The campaign will be led by a TVC that encourages people to truly pause with a Coke on their break so they can walk away feeling refreshed and uplifted. The TVC features two busy chefs stepping outside for a break, the bustling kitchen […]

Nova 91.9’s Ben And Liam Locked Up In Rundle Mall To Raise Awareness For Mental Health
  • Marketing
  • Media

Nova 91.9’s Ben And Liam Locked Up In Rundle Mall To Raise Awareness For Mental Health

Nova 919’s Ben & Liam breakfast show announced that they’ll be throwing their support behind and raising awareness for a cause very close to their hearts, mental health. On Monday 21 June Ben Harvey and Liam Stapleton will be locked in a purpose-built glass structure, in the middle of Rundle Mall, for an entire week […]

iHeartPodcast Network Australia And The New York Times Agree Podcast Ad Sales Deal
  • Advertising
  • Media

iHeartPodcast Network Australia And The New York Times Agree Podcast Ad Sales Deal

ARN and The New York Times have reached an agreement for ARN to become the advertising sales representative for The New York Times’s podcast portfolio in Australia. The deal will enable Australian brands to connect with Australian listeners to The New York Times’s most popular podcasts, such as The Daily, Serial and This American Life, […]

Verizon Media Academy Ends For 2021 With Youth Charity Pitch-Off
  • Advertising
  • Media

Verizon Media Academy Ends For 2021 With Youth Charity Pitch-Off

Verizon Media’s talent program has come to an end for the third year, closing with a hybrid pitch-off event for Musicians Making A Difference (MMAD). The Verizon Media Academy class of 2021, made up of 44 emerging leaders from across Australia and New Zealand media, advertising and marketing industry, were given just one hour to […]