NEW YORK, NY – JUNE 17: The Apple logo is displayed at the Apple Store June 17, 2015 on Fifth … [+]
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The online video advertising space has been historically dominated by films and broadcasters with the SuperBowl being the most noteworthy example of big spending in the industry – for those that watch it online. TV, streaming and entertainment platforms are pushing to move into the lucrative space recently with NetflixNFLX
building and starting an ad-supported version of their site. However, technology research firm Omdia has painted a changing narrative for online video ads.
Alphabet, AmazonAMZN
, Meta and AppleAAPL
– the primary and most well-known tech entities will garner just under 70% of the market, excluding China. This equates to around $500 billion in revenue that said companies, are expected to earn from online advertising.
Talking to the Financial Times, Marija Masalskis, senior analyst for TV, video and advertising at Omdia said, “Historically, when you thought about the big [video-based] media companies, you thought about broadcasters,”
“But now they are small compared to companies like YouTube and Facebook [and] the most significant part of this story is how huge [the respective parent companies] Google and Meta have become in comparison with the big TV brands.”
Utilizing consumer intelligence from their billions of users, tech companies can generate bespoke campaigns for advertisers. Something very difficult for the TV, film, and wider entertainment industry without new systems like artificial intelligence and machine learning to level the playing field. Though not there yet entertainment entities still rely on past data and slot analytics to paint an accurate picture for advertisers. Something the big tech companies have surpassed and are now capitalizing on.
There is even competition between new tech companies as surging social media platform TikTok is set to have its advertising revenue exceed that of Meta and YouTube combined by 2027, according to Omdia.
SAN ANSELMO, CALIFORNIA – NOVEMBER 01: In this photo illustration, the Tik Tok app is displayed on … [+]
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Of course, some properties will always be popular for advertisers and that’s what entertainment firms are banking on. Major awards shows like the Academy Awards being one of them. Disney is also uniquely placed as it picks up information on consumers from a variety of sources across its large ecosystem. Theme parks, streaming platforms, and resorts are just some of the data they can collect. The advantage however remains online with a broader targeting capacity and the ability to pick up data seamlessly.
Governmental regulation is also changing the landscape with tech advertisers historically relying a lot on cookies. That model is now being put under pressure by the EU’s General Data Protection Regulation (GDPR) amongst other worldwide governmental departments trying to back people’s …….