SANTA MONICA, Calif. — Viewership is booming, the number of players in the market is multiplying and the economic headwinds are blowing in their direction.

But how can ad-supported video-on-demand (AVOD) services grow through their current halcyon days whilst keeping the viewing experience top of mind?

In this video interview with Beet.TV, one ad-tech exec says the services need to watch the tech.

Lean on tech

Nicole Scaglione, VP, CTV & OTT, PubMatic, says the segment is “blossoming”, connected TV (CTV) content expanding, new distribution channels and “exciting” engagements between buyers and sellers.

But she also has a warning.

“The key here, though, is being able to preserve this experience for viewers in the ad-supported model,” Scaglione says.

“That means really being careful with over-frequency, being careful with ad quality, taking full advantage of tech platforms that can help support frequency-capping, signals that are very transparent so buyers know what they’re buying.

“If we can lean more onto our technology partners, we can help these content providers really win right out of the gate as they take more of their premium content AVOD.”

AVOD rising

Magna says AVOD spend will grow 33% in 2023 to hit $6.3 billion, despite a dip in overall US ad spend.

That is partly credited to new ad inventory coming on-stream from Netflix and Disney+.

But the truth is, AVOD services were already blossoming before those SVOD services’ decision to switch on ad support. The SVODs are launching into an existing segment that would already have grown.

In other words, all AVOD boats will rise.

CTV superhero

When they do, however, they will need to work hard at measuring their effectiveness.

While PubMatic’s Scaglione loves the “explosion” through which “everybody has a say in what’s happening with CTV”, she acknowledges achieving perfect cross-screen ad measurement is still a work-in-progress.

“I think we (as an industry) have a lot more to do,” she says. “I think there’s kind of more that we can learn from the digital side in terms of bringing the best of TV and the best of digital together and making this kind of like Voltron, the superhero of CTV, for publishers and for buyers. We still have time.”

You are watching coverage of Beet Retreat Santa Monica 2022, presented by Ampersand, MiQ, Nielsen, PubMatic, T-Mobile Advertising Solutions and The Trade Desk. For more videos from the Beet Retreat, please visit this page.