The holidays are just around the corner, meaning two things — a rise in video content viewership and increased spending. In fact, consumer spending, especially in the U.S., is showing signs of incredibly healthy growth, with the 2024 holiday season expected to reach a record-breaking $1.372 trillion.
According to Nielsen, streaming platforms continue to dominate content viewership versus traditional broadcast and cable with nearly double the viewership (40.3% of total viewership vs. 20.5%). During the holidays, that number grows even more, representing an incredible opportunity for advertisers and content owners alike to drive revenue and deliver a great experiences.
So how can content owners tap into this surge in viewership and spending to drive revenue and maximize monetization?
Which streaming models are best for holiday viewing?
For content owners, Advertising-based Video on Demand (AVOD) and Free Ad-supported Streaming Television (FAST) offer the best opportunities to monetize content and maximize earning potential.
While the two models are similar in terms of how they serve ads (pre-roll, mid-roll, and post-roll), there are important differences between the platforms.
The FAST model offers free programming/video content in a linear, scheduled format like OTA/cable TV, presented with ad breaks.
Unlike FAST’s linear and scheduled format, AVOD allows viewers access to the content they want, when they want it (hence “on demand”), also supported by ads.
While each streaming model has distinct advantages, FAST has a slight edge for content owners looking to maximize holiday ad revenue. While CPMs for FAST inventory can be relatively low compared to AVOD, the advantage in the holiday viewing season is that viewers don’t spend as much time making a decision about what to watch (10.5 minutes of viewing time for AVOD is spent on just deciding which content to consume), and ad skipping is not as common in the FAST experience, meaning higher ad completion rates.
Getting the audience right (for advertisers AND content owners)
For advertisers, maximizing your reach is about understanding the preferences of streaming audiences. As opposed to the massive reach of broadcast, where viewers expect to see a litany of irrelevant ads, streaming viewers have come to expect more personalized ad content.
Failing to understand this important shift could make a massive impact on your ad completion rates, not to mention your overall earning and revenue potential during the holidays. Research from contextual ad and monetization platform GumGum indicates that ads average a 50% spike in attention during the holidays, a number that directly impacts your holiday sales with nearly 90% of viewers doing holiday shopping online while watching TV when ads are relevant to them.
For content owners, you’ll maximize your earning potential from holiday advertisers by properly preparing your content with the right metadata. This important information is how advertisers and the ad platforms they employ can decide if an ad is right for your content and audience. Content metadata includes information such as the content title, series information, genre, rating, cast and crew, and more. Taking metadata to the next level, however, means you’ll also want to provide context metadata, which is information about the individual shot within the content (think Amazon’s “X-Ray” feature). The more metadata, the better your odds for maximizing your appeal to advertisers, and the better your odds of getting your content to the right viewers and growing your content’s demand.
Preparing your content with Time Tailor
Whether you choose to monetize via FAST or AVOD, embracing technology which allows you to quickly and cost-effectively customize each piece of your library’s content to meet the unique requirements of each model is key to maximizing your content’s earning potential.
With Time Tailor, our innovative, AI-powered software product, your content can be ready for new markets, channels, and monetization opportunities 90% faster than relying on traditional methods. Combined with the ability to save 60% or greater on editing costs, while generating more space for ad inventory, Time Tailor’s benefits more than pay for themselves and unlock unlimited potential for your library’s earning potential. Contact us for more information on how Time Tailor can increase revenue, a demo or no-obligation proof of concept, or support for enhancing your content or streaming service’s monetization efforts.
