{"id":142644,"date":"2020-12-25T16:36:07","date_gmt":"2020-12-25T16:36:07","guid":{"rendered":"https:\/\/www.searchenginewatch.com\/?p=142644"},"modified":"2020-12-25T16:36:07","modified_gmt":"2020-12-25T16:36:07","slug":"jingle-all-the-way-what-will-2021-mean-to-the-advertising-world","status":"publish","type":"post","link":"https:\/\/searchenginewatch.com\/2020\/12\/25\/jingle-all-the-way-what-will-2021-mean-to-the-advertising-world\/","title":{"rendered":"Jingle all the way: What will 2021 mean to the advertising world?"},"content":{"rendered":"<div class=\"well\">\n<h3>30-second summary:<\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">Despite the overall doom and gloom, some industries actually skyrocketed in 2020.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">2021 is supposed to dot some i\u2019s and cross some t&#8217;s in the field of transparency and first-party data solutions.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Live streaming related to gaming and sports is a huge advertising-friendly zone that is expected to expand further in 2021.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Header bidding solutions for OTT and CTV, new attribution, and monetization features are the advertising technologies that will gather momentum in 2021.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">AI and ML predictive algorithms will further revolutionize personalization in the advertising world.<\/span><\/li>\n<\/ul>\n<\/div>\n<p><span style=\"font-weight: 400;\">Surreal, eye-opening, melancholic, thought-provoking\u2026 2020 has been like no other year in this century so far, as those wearing t-shirts with an &#8220;All I want for Christmas is 2021&#8221; logo will eagerly confirm. And though there\u2019s a lot to be done before all pieces of the 2021 puzzle can be put together, the upcoming year has many hopes to fulfill. No pressure, 2021, but you&#8217;d better be good! On this cautiously positive note, let\u2019s briefly revise 2020 based on the insights from the<\/span><span style=\"font-weight: 400;\"> &#8216;OTT Executive Summit<\/span><i><span style=\"font-weight: 400;\">&#8216; <\/span><\/i><span style=\"font-weight: 400;\">before we can warmly welcome the upcoming year. Read on for foresight on the future of advertising.<\/span><\/p>\n<h2><b>Looking back at 2020<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The reality of 2020 dictated new rules, values, people\u2019s habits, and a new outlook on what \u201cnormal\u201d was. Unsurprisingly, despite the overall doom and gloom, some industries, which fit in this transformed layout really well, actually skyrocketed. They say every cloud has its silver lining, and that was true even for 2020.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Take for instance CTV, whose ad spend increased by <\/span><a href=\"https:\/\/www.iab.com\/wp-content\/uploads\/2020\/09\/200831.SpendResearchStudyNo6.FINAL_.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">19%<\/span><\/a><span style=\"font-weight: 400;\"> this year, according to IAB, primarily due to the pandemic and mass lockdowns.\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cTV forever has been a top funnel media, a media that you used to drive awareness but not to drive purchase. What\u2019s so interesting about Connected Television is that it gives an opportunity to be both, a powerful branding media as well as a media that is very appealing to marketers who are trying to drive actual outcomes,\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Scott Rosenberg, SVP\/GM of Platform Business at Roku<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Digital devices, including the CTV ones, to a certain extent, became the guardians of people\u2019s mental wellbeing. This fact is backed up by the Leichtman Research Group\u2019s report that counted <\/span><a href=\"https:\/\/www.leichtmanresearch.com\/80-of-u-s-tv-households-have-at-least-one-connected-tv-device\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">400 million<\/span><\/a><span style=\"font-weight: 400;\"> Connected TV devices in the US earlier this year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another curious outcome of the pandemic is the shift that occurred in the way viewers started consuming OTT content. Nielsen shared their insights on the <\/span><a href=\"https:\/\/www.nielsen.com\/us\/en\/insights\/article\/2020\/connected-tv-usage-remains-above-pre-covid-19-levels-as-traditional-tv-viewing-normalizes\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">growing<\/span><\/a><span style=\"font-weight: 400;\"> trend of co-viewing, as people were tied to their homes and family members for a long period of time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The developments of the Internet and 5G networks added even more points to CTV\u2019s score, making the market magnetic for app developers. As a result, streaming soared, turning <\/span><a href=\"https:\/\/info.advertising.roku.com\/Roku_Holiday_SeasonOfStreaming2020\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">85%<\/span><\/a><span style=\"font-weight: 400;\"> of Americans into streamers, according to Roku.\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">\u201cStreaming for the first time is overtaking live TV,\u201d<\/span><\/i><span style=\"font-weight: 400;\"> Andrew Hare, <\/span><span style=\"font-weight: 400;\">Senior Vice President, Research at <\/span><span style=\"font-weight: 400;\">Magid Associates, Inc<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition to the <\/span><a href=\"https:\/\/www.emarketer.com\/content\/q3-2020-digital-video-trends#page-report\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">accelerated <\/span><\/a><span style=\"font-weight: 400;\">number of subscribers of existing streaming services, outlined by eMarketer, the industry has seen a true upswing in the launch of new platforms, like Apple TV +, HBO Max, Disney +, Paramount +, Quibi (currently shut down), and others.\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cThe streaming war up until this point has been really between the Big Three [Netflix, Amazon Prime Video and Hulu], however, with the entrance of all these high profile services from Disney, Apple, Warner Media, NBCUniversal, and others we could be seeing a huge upset of the hierarchy moving forward. And the interesting thing is that a lot of these new services have taken different approaches, trying to tackle the Big Three,\u201d <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Steve Nason, Research Director at Park Associates<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">With a CTV viewing time growth by<\/span> <a href=\"https:\/\/www.nielsen.com\/us\/en\/insights\/article\/2020\/connected-tv-usage-remains-above-pre-covid-19-levels-as-traditional-tv-viewing-normalizes\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">81%<\/span><\/a><span style=\"font-weight: 400;\"> in 2020, as per Nielsen, and the abundance of entertainment opportunities CTV has in its goody bag, consumers admittedly started to have fewer problems with ads. Provided that ads could be the only price they would have to pay for the content.\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cConsumers found our service and services like ours really viable. Ad-supported became a really good way of getting your news and your movies, and perhaps your content library,\u201d <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Colin Petrie-Norris, CEO <\/span><span style=\"font-weight: 400;\">at Xumo<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201c43% of US adults have paused a show they were watching to go purchase or consider the product that they just saw on screen. The conditions are very ripe between the consumers\u2019 unwillingness to go to physical retail as well as more advanced ad products that can put the right ad in front of you at the right moment, have it be actionable,<\/span><span style=\"font-weight: 400;\">\u201d <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Scott Rosenberg, SVP\/GM of Platform Business at Roku<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">In fact, eMarketer\u2019s Q3 report highlighted an increase in AVOD revenue by <\/span><a href=\"https:\/\/www.emarketer.com\/content\/q3-2020-digital-video-trends\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">31%<\/span><\/a><span style=\"font-weight: 400;\"> in 2020. This means that well-established AVOD platforms, such as Pluto TV, Xumo, Vudu, Crackle, and Tubi, will soon have to share the space with many newcomers, willing to hit the jackpot by adopting AVOD or a hybrid model that combines SVOD and AVOD features.<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cTwo-thirds of all viewing time is on ad-supported platforms. For the first time 53% of people 18+ said they watch at least one AVOD service. 51% in the US tell us they would prefer an advertising-based free model versus a subscription with no ads or EST [<\/span><span style=\"font-weight: 400;\">Electronic Sell-Through],<\/span><span style=\"font-weight: 400;\">\u201d <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Andrew Hare, <\/span><span style=\"font-weight: 400;\">Senior Vice President, Research at <\/span><span style=\"font-weight: 400;\">Magid Associates, Inc<\/span><\/p><\/blockquote>\n<h2><b>Looking forward to 2021<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Though mysteriously staring at the crystal ball to see the future is always fun, eMarketer shared a few clues to make anyone\u2019s predictions a bit more grounded. Following eMarketer\u2019s estimates, the CTV ad spends will reach <\/span><a href=\"https:\/\/www.emarketer.com\/content\/us-connected-tv-advertising-2020\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">$11.36 billion<\/span><\/a><span style=\"font-weight: 400;\"> in 2021, which is around 40% higher than the year before that. Additionally, 2021 will bring a <\/span><a href=\"https:\/\/on.emarketer.com\/rs\/867-SLG-901\/images\/bii_connectedtvtrends_2020.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">reduction<\/span><\/a><span style=\"font-weight: 400;\"> in Connected TV CPMs due to a meteoritic rise of supply. Without having our heads in the clouds, let\u2019s take a closer look at where this may take us from different perspectives of the <\/span><a href=\"https:\/\/allroll.com\/programmatic-tv-trends-where-should-advertisers-invest\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">CTV landscape<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>1. Transparency <\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Privacy concerns have consistently been the internet&#8217;s stumbling block. Users want to know who collects what data and for what purposes. Looks like a few years after the introduction of GDPR, 2021 will finally dot some i\u2019s and cross some t&#8217;s in this area. Since <a href=\"https:\/\/searchenginewatch.com\/2020\/03\/24\/hitchhikers-guide-to-the-end-of-the-third-party-cookie-as-we-know-it-google\/\" target=\"_blank\" rel=\"noopener noreferrer\">Google announced its plan to opt-out third-party cookies<\/a> from the Chrome browser, the advertising world has been restlessly trying to come up with a new unified first-party data approach for all its channels. As advertisers aim to secure their access to consumers, direct deals via PMP (Private Marketplace) or PG (Programmatic Guaranteed) punched above their weight. And though these are effective ways of reaching audiences, they risk leaving smaller players out of the loop. In the meantime, the connected TV arena moved the question of transparency from high priority to critical. Hopefully, 2021 will bring some clarity to unified solutions for delivering first-party data to advertisers. Alternatively, we have good chances to watch further fragmentation of the market (which is not good) stitched together with progress in addressability (which is good).<\/span><\/p>\n<h3><b>2. Investments<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Streaming of all shapes and sizes continues to soar, and 2021 is expected to reveal its potential even fuller. Live streaming, especially related to gaming and sports, offers marketers a unique opportunity to reach out to a growing segment of esport streamers and watchers, who in 2020 constituted <\/span><a href=\"https:\/\/blog.globalwebindex.com\/trends\/optimizing-in-game-ad-strategies\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">92%<\/span><\/a><span style=\"font-weight: 400;\"> of the US and UK Generations Z and Y populations, based on the data from GlobalWebIndex. Certainly, anchoring consumers at home did oil the wheels and contributed a great deal to this trend. Outside of sports and gaming, another streaming playing field, that is gaining momentum as we speak, is certainly AVOD. A snowballing effect with which streaming services sprang up made watchers tight-fisted and less opposed to ads. This tendency is likely to stay the course. Therefore, if there is a perfect time and place to make the most of advertising budgets, it will undoubtedly be streaming in 2021.\u00a0<\/span><\/p>\n<h3><b>3. Formats<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Provided that customers\u2019 attention span was <\/span><a href=\"https:\/\/blogs.oracle.com\/oracledatacloud\/2020-trends-shaping-the-digital-marketing-landscape\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">eight seconds<\/span><\/a><span style=\"font-weight: 400;\"> in 2020, as stated by Oracle, it\u2019s obvious that capturing this attention will only get harder for brands with time. This is where engaging formats will come in handy. Browsable galleries, shoppable ads, carousels, TV-to-Mobile elements, Virtual Reality (VR), Augmented Reality (AR), these are just a part of the mantra for all advertisers out there. The only way to walk customers through all the stages of the funnel is to stay creative, up-to-date, and make their experience lightweight, yet memorable. As for the channels, it\u2019s worth going out on a limb and adopting an omnichannel strategy that will include DOOH (Digital Out-of-Home), which has been rocking the boat of digital advertising for quite some time now. Given that consumers are expected to spend much more time out of their homes to make up for 2020, if\/when restrictions are relaxed in 2021, experimenting with new formats would be the way forward.<\/span><\/p>\n<h3><b>4. Advertising technologies<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Due to the fact that programmatic, as a transaction method is going to reach <\/span><a href=\"https:\/\/www.emarketer.com\/content\/q3-2020-digital-video-trends#page-report\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">$5.72 billion<\/span><\/a><span style=\"font-weight: 400;\"> in 2021, according to eMarketer, the talks about scaling up header bidding solutions for OTT and CTV have a clear rationale behind them. This technology will enable buyers to access dynamic auctions, while publishers will be able to send ad requests to multiple buyers and improve their monetization results. Furthermore, 2021 will surely expose marketers to more attribution and promotion opportunities, be it showcasing customer journey for OTT channel owners with the <\/span><a href=\"https:\/\/attriboost.com\/\"><span style=\"font-weight: 400;\">Attriboost<\/span><\/a><span style=\"font-weight: 400;\"> analytics software or providing across-the-board monetization capabilities through Allroll\u2019s self-serve platform. Staying at the forefront of the AdTech innovation curve will open doors to windfall profits.<\/span><\/p>\n<h3><b>5. Intelligent automation<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A recent focus on a minimized face-to-face human interaction fuelled interest in automation powered by AI (Artificial Intelligence) and ML (Machine Learning). This ultimately sowed the seeds of acceptance and made these technologies more approachable for businesses. In the context of <a href=\"https:\/\/searchenginewatch.com\/2020\/10\/30\/five-fears-of-channel-owners-what-spooks-you-about-creating-your-own-ctv-app\/\" target=\"_blank\" rel=\"noopener noreferrer\">Connected TV<\/a>, the advancements of AI-led to the kickoff of ACR (Automatic Content Recognition), which originated from smart TV players, for example, Samba TV, Samsung Ads, and LG\u2019s Live Plus. Their predictive algorithms create an additional layer of personalization for CTV viewership. Taking into consideration how personalization is worshipped by marketers, beyond a shadow of doubt, ACR will play an important part in the CTV industry in 2021.<\/span><\/p>\n<h2><b>Takeaways<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The time to say \u2018goodbye\u2019 to 2020 has come. Digital space, in line with the rest of the world, has gone through a lot of rethinking and reinventing, demonstrated resilience and agility, trying to foresee and comfort consumers in every single shift in their behavior. These changes, however, mapped a whole new outlook for 2021. <a href=\"https:\/\/searchenginewatch.com\/2019\/07\/26\/guide-call-tracking\/\" target=\"_blank\" rel=\"noopener noreferrer\">Data privacy<\/a>, investment opportunities, engaging formats, advertising, and automation technologies will run the digital world in 2021 in an even more exciting manner than before. So, fasten your seatbelts, and let\u2019s go!<\/span><\/p>\n<p><em>Alex Zakrevsky is the CEO of\u00a0<a href=\"https:\/\/allroll.com\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"NotApplicable\">Allroll<\/a>\u00a0marketing platform for CTV\/OTT channel owners. Innovator, product lover, CTV, and programmatic enthusiast. He believes that the quality of the product always wins.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Alex Zakrevsky, CEO of Allroll, shares his takeaways from the OTT Executive Summit and perspectives on what 2021 will have in store for CTV advertising.<\/p>\n","protected":false},"author":1092,"featured_media":142647,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27893,7],"tags":[28011,27973,27865,460,53,274,6142,27882,27866,497,27978,27796,1005,224,225],"content_type":[],"class_list":["post-142644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-marketing","category-industry","tag-28011","tag-5g","tag-ctv","tag-digital-advertising","tag-digital-marketing","tag-gdpr","tag-industry","tag-machine-learning-ml","tag-ott","tag-programmatic-advertising","tag-roku","tag-third-party-cookies","tag-trends","tag-virtual-reality","tag-vr"],"acf":{"tad_independentcommercial":false,"tad_content_format":false},"post_info":{"name":"idris.nagri@blenheimchalcot.com idris.nagri@blenheimchalcot.com","title":"","thumbnail_url":"https:\/\/searchenginewatch.com\/wp-content\/uploads\/2020\/12\/Jingle-all-the-way-What-will-2021-mean-to-the-advertising-world-scaled.jpg","category":"Digital Marketing","timeago":"5y"},"_links":{"self":[{"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/posts\/142644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/users\/1092"}],"replies":[{"embeddable":true,"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/comments?post=142644"}],"version-history":[{"count":0,"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/posts\/142644\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/media\/142647"}],"wp:attachment":[{"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/media?parent=142644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/categories?post=142644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/tags?post=142644"},{"taxonomy":"content_type","embeddable":true,"href":"https:\/\/searchenginewatch.com\/wp-json\/wp\/v2\/content_type?post=142644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}