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There’s no question that ad-funded services have massively grown in popularity over the recent years. What’s less clear is whether ads are here to stay or whether ad-supported video services are merely a passing trend. Will viewers eventually grow tired of ads constantly interrupting their content? Without innovation on the ad-tech front to make the ad experience much more engaging and enjoyable, this is a possible outcome. Put simply, ads just don’t engage viewers well enough and their value is decreasing. And with advertising being a key revenue stream for the OTT industry, it’s critical that we prevent the value of ads from continuing on a downward incline. 

Having said that, we’re starting to see some pretty exciting developments in ad-tech that will help make the ad-experience more engaging and enjoyable for viewers. Think innovative ad formats that replace the traditional ad break, contextual advertising, better use of data for enhanced personalisation, and AI-powered product placement. Helen Weedon, Managing Director of Radical Moves discussed this very topic in a recent article, The Rise of Ad-Funded Services, featured in TV Asia Plus, with insights from industry experts Michael Lantz, Accedo, Geoff Gordon, MainConcept, and Gatis Gailis and Lelde Ardava, both Veset. 

To further complicate matters, as the use of third-party data becomes ever more restricted, video services are having to rethink their current approach to ad targeting. With heightened privacy concerns and strict data regulations, advertising models reliant on user data collected by third part cookies will soon become a thing of the past. For insights on this topic, take a look at Helen Weedon’s recent article, Can Ad-Funded Services Thrive in a Post-Cookie World? in TVB Europe, again featuring industry leaders from Accedo, Main Concept and Veset.