Tech Companies Move Ahead Of Broadcasters In The Online Video Advertising Space

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.

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 requirement for privacy. The advent of web3 also plays into this with the concept of the individual being able to monetize their data.

Digital marketing has been a particular hit for smaller companies with broadcasters as they launch – or acquire – platforms that make online ad space buying easier. Such is referenced by U.K. broadcaster, ITV, and its advertising hub Planet V.

As reported in Bloomberg, ATMTogether.com built a business and was honored with three Two-Comma Club Awards at the annual ClickFunnels.com event. The company generated $4 million across different funnels with online digital advertising, according to CEO Paul Alex, being a large reason for that.

“Ultimately customers are going to want to give you their business, even if you have something that is very comparable to the market. That’s why understanding the science behind how to market yourself and your business is essential to not only being successful, but your ticket to setting yourself apart from the competition. To be in the top 1% you have to be the face of your brand and I think it’s huge, especially if people can relate to you.” He said.

“Using online digital marketing online has been great for us as we’ve been able to leverage it directly for fast and tangible results.”

ATMTogether.com is an automation platform which guides clients to create, build and maintain their own respective automated teller machine (ATM) businesses. They specialize in automation, the physical placement of the machines, and most importantly the education of entrepreneurs moving into the space.

“Ultimately, if you have a good idea or good business that helps people you have a responsibility to let people know, market, and communicate that. Online digital marketing has been the most cost-effective way for us.”

The U.S. is still placed as the largest advertising market with India, China, and Argentina being fast-growth areas to look out for within the next 5-10 years. China specifically has the world’s fastest-growing online advertising market.

To further compete with big tech, entertainment firms should focus on tech themselves – specifically AI and ML – to encapsulate and utilize data with an eye on the changing privacy landscape to play into their advantages. The use of their unique IP, in the form of content, should also be consistently thought of to push a competitive advantage in an online video war they are currently losing.