This archive report was first published on 28 October 2019.
Published on October 28, 2019, the rise of streaming TV has brought about a new era in advertising, with services like Netflix, Apple+, and Disney+ pledging to be ad-free, while others like WarnerMedia and NBCUniversal are expected to have ad-supported options, similar to Hulu.
These online platforms will be able to deliver targeted or 'addressable' ads based on viewing habits, location, and other data they collect, much like Google and Facebook.
According to eMarketer, addressable TV ad revenue in the US is expected to grow from $1.5 billion in 2018 to $3.5 billion in 2021.
Smaller players ¶
Streaming services are making it easier for smaller companies and marketers to get on television through self-serve ad platforms without the big budgets required for broadcast TV, said eMarketer analyst Ross Benes.
"There are a lot of new companies coming into television advertising" as a result of streaming, Benes said.
"TV is still a place where you can get a massive amount of people's attention," he added.
Fresh privacy issues ¶
The rise of streaming could raise a fresh set of privacy concerns over how data on TV viewers is collected and shared across various platforms and devices.
A recent academic study found smart TVs, streaming dongles, and other connected devices sending data to companies like Netflix and Facebook.
"There is a small number of these cloud providers that are getting a lot of insight into what you're doing with these devices," said David Choffnes of Northeastern University, who led the research.
2020 political ads ¶
Addressable TV advertising also opens up a new channel for political ads, potentially impacting spending in the 2020 US election campaign.
"I don't think there's any doubt this will play a role" in the election campaign, said Charles Taylor, a marketing professor at Villanova University.
