Report: Ad-spend on SVoD platforms over $369m in Q1
May 5, 2022
This year, 1.88 billion people around the world will use SVoD services like Netflix, Disney+ and Prime Video. Recently, a number of services – including Netflix – have announced they will likely introduce ad supported options to make up for loss of revenue from dwindling subscriptions.
MediaRadar recently reviewed advertising across multiple ad-supported streaming platforms, including Hulu, Peacock and HBO Max. Standalone streaming services are sampled from the ad-supported streaming packages, across a panel of 2 million people in the US.
According to the data, during the first quarter of 2022, there were nearly 1,400 companies advertising over 3,000 brands that invested more than $369 million (€350m) in ad spend. Expectedly, Q1 ad spend is lower than that of the holiday season, but it’s just a 6 per cent dip of what was spent in Q4 2021.
However, when comparing to Q3 2021, MediaRadar saw an increase in ad spend of 5 per cent, $353 million was invested in streaming video advertising that quarter.
“Q1 of 2022 saw strong investment in ad supported OTT,” said Todd Krizelman, CEO & Co-Founder, MediaRadar. “We saw 25 per cent of advertisers investing across these streaming platforms that did not advertise in 2021. As we come out of the pandemic and this form of media stabilises, it isn’t surprising advertisers are testing advertising on OTT platforms. Despite the dip in overall investment this quarter, it is still a great place for advertisers to stand out and not have their message lost.”
Looking at advertisers on OTT, MediaRadar also found:
- 72 per cent (2,600) of the 3,600 companies that purchased OTT ads in 2021 – haven’t advertised yet in 2022. They spent $86 million combined in 2021.
- Five top spenders in Q1 2022 included Berkshire Hathaway, Capital One, Microsoft, State Farm, and Verizon. These names accounted for over $49 million and 13 per cent of the quarter’s total OTT investment.