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A glimpse into the future of ad-supported TV
Welcome to the end of the week. Will you spend your hard-earned weekend streaming? Or will you be on social? With the lines between streaming content and social media continuing to blur, maybe both? Let’s talk about it.
Streaming to Social—What’s the Future of Ad-Supported TV?
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Think back to 2015: Streaming was in an all-out war with major networks as viewers ditched cable for options like Netflix and Amazon Prime. No longer was the best content gate-kept by intrusive commercials for products or services we didn’t want or need—we paid for commercial-free access to our favorite shows. With that, marketers’ desire to pay the hefty price for creation and placement of a commercial didn’t necessarily go away—but it lost some luster.
In the past year, streaming platforms needed to drive more growth in the competitive space. The strategy? Rolling out ad-supported options at a lower price point, offering marketers more OTT inventory to buy. But with companies like Disney+ and Netflix struggling to acquire users for their ad-supported tiers, is this actually a viable path to the future of ad-supported TV? Where will the cohort of consumers who just want to turn something on at little to no cost go? And how will marketers reach them?
YouTube just announced their new foray into this. Leaning into commercials = free content, YouTube told TechCrunch, “We are currently running a small experiment that allows viewers to watch free ad-supported linear channels alongside the wide variety of content we offer on the platform.”
While some powerhouse television shows that cultivate enough cultural capital still draw in subscribers to streaming platforms, consumers are falling away from high prices or lower-priced content with commercial breaks. Because of this, commercials on traditional streaming platforms or linear television networks may not secure the same visibility they once promised. Marketers need to pay attention to where customers are likely to abide ads—within free content, like that offered by YouTube—and allocate ad spend accordingly.
TikTok Increases Transparency for Everyone But TikTok
TikTok just launched a feature to label state-affiliated media within the app. TikTok defines state-affiliated media as “accounts run by entities whose editorial output or decision-making process is subject to control or influence by a government.” They go on further to explain the label feature intends “to help viewers better understand sources behind content.” That way, users know exactly who is giving them what information.
The pilot program for this type of labeled content rolled out last year in Belarus, Russia and Ukraine to combat the spread of misinformation. Although it increases transparency for users, showing where the content they’re consuming comes from, TikTok hasn’t made efforts to provide more transparency into TikTok and how TikTok is using user data.
Leaving political ramifications out of it, the label feature will likely be embraced by savvy consumers who are more conscious about the content—and brands—they choose to consume. The verdict’s out whether the initiative will quell U.S. distrust of the app, but we’re not holding our breath.
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Just Can't Get Enough
Accessibility. In the United States, 26% of adults have some sort of disability, but not a lot of splashy marketing centers around disability-accommodating products. Some brands are working to change that.
L’Oreal premiered a motorized makeup applicator for people with limited mobility.
Google Maps lets users find wheelchair accessible locations when searching.
But brands need to make online experiences accessible, too.
For real—what are your weekend plans? What content do you consume on your off hours or do you avoid media at all costs? Reply and let us know which markets the marketers enjoy!
Thanks for joining us, and we’ll see you Monday!