Since the pandemic, many people have increased the amount of time they spend with streaming content, and according to some report the pandemic fast-tracked consumer adoption of CTV services. According to eMarketer the CTV ad spend should increase by double digits moving forward.
"Consumers are cord-cutting at a record pace and opting into ad-supported video on demand platforms to cut costs while still getting access to high quality content. We believe the future of television is ad-supported streaming," said Tap Chalozin, Co-Founder & CTO, Innovid.
The problem, to some extent, is the sheer volume of streaming services from which to choose. Consumers have begun to complain that there are too many services and that the costs are more than traditional cable options. That doesn't keep them from streaming, of course, by it has many marketers wondering how to enter this already crowded space.
Google's proposed platform Kaleidoscope could solve the fragmentation problem by offering a UI that would allow people to search for the content that is relevant to them. Still, marketers may not be convinced that this can help them reach the right people.
"For marketers, [Kaleidoscope] would similarly help them manage the fragmented streaming world. It's very hard to understand the big picture when marketers are buying from individual sellers. They need to ensure that they're not buying the same audience multiple times and leaving other segments unreached. However, marketers may also be hesitant to hand over even more control of ad spend to Google thus making CTV another walled garden. The best way to prevent this is to demand that granular data be shared from the app or deal level," said Chalozin.
For content produces, a platform like Kaleidoscope could solve the problem of consumers' finding content but could open other problematic doors - like giving Google access to their content.
"The streaming services might also be wary of giving Google access to their content, as the search data would likely be used to strengthen its own YouTube Premium offering," said Chalozin. "Of note, Facebook tried and failed at doing something similar with Facebook TV. The app owners knew what Facebook was trying to do with their data and refused unless Facebook agreed to not track users or collect device IDs. But Google's ownership of DV360, a big source of demand for AVOD apps, gives it leverage. There's enough competition between CTV platforms for app owners to be less wary of Google dominating the space."
We will have to wait and see what impact Kaleidoscope could have on the streaming space. In the mean time, consumers continue to spend more time with digital content and that means marketers must find a way to engage in the space.
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