New Trends in Advertising: AVOD, FAST, and Freemium

New Trends in Advertising: AVOD, FAST, and Freemium


In a joint webinar titled “AVOD, FAST, Freemium: Effective Advertising in the New Video Landscape,” Parks Associates and Adeia will explore the market forces and technology trends that are driving consumers towards ad-supported services. The webinar will provide insights into the seismic shifts occurring in the media and entertainment landscape as consumers respond to uncertain economic realities.

One significant trend highlighted Parks Associates research is the decline in household spending on streaming subscription services. The research shows a 25% decrease, with households now spending an average of $73 per month compared to $90 per month in 2021. This decline has led to an increase in the usage of free ad-based services, with approximately 31% of households utilizing these services the end of 2022. This marks the fourth consecutive year of market share growth for ad-supported services since 2019.

To effectively engage viewers and attract ad dollars in this evolving landscape, it is crucial for streaming providers to leverage data and provide relevant content and digital advertisements. However, this can be challenging as data is fragmented across different operating systems and applications, and viewer consent is required. Jennifer Kent, VP of Research at Parks Associates, emphasizes the need for the next generation of TV and CTV advertising to move beyond traditional linear ad formats and models. Instead, it should offer interactive, actionable, secure, and enjoyable experiences that engage video viewers.

The changing relationship between consumers and video content is also a key focus of the webinar. As more options enter the market and younger demographic consumers shift to viewing video on devices, advertising must adapt. Parks Associates and Adeia will present research and insights from their recently published white paper, “Overcoming Complexity: Advertising in a Fragmented Landscape,” which explores how advertising is evolving to accommodate new ad-supported streaming models and privacy practices.

One driving factor behind the rise of ad-supported services is the concern around inflation and price hikes for streaming services. Consumers are now dynamically choosing which services to subscribe to each month, leading to fragmentation in target audiences for advertisers and brands. Jean-Yves Couleaud, Senior Director of Advanced R&D for Adeia, highlights the need for technological solutions that can federate advertising opportunities and reporting across the disparate streaming landscape.

As the media and entertainment landscape continues to undergo significant changes, understanding and adapting to the market forces and technology trends driving consumers towards ad-supported services is crucial for streaming providers and advertisers alike.

– Parks Associates
– Adeia