How the new video playbook centers flexible solutions for broadcasters and audiences alike

Advertising was a normal part of watching television — until the early 2010s, when digital video recorders (DVRs) and early ad-free streaming platforms began to change viewer expectations.

But nearly two decades on, the pendulum is swinging back. Early streamers like Amazon Prime and Netflix — which famously said it would never run ads — are not only running ads but recently doubled ad load and announced massive ad-business growth, respectively.

Publishers and broadcasters are facing increased pressure to balance user experience with profitability, but there isn’t a one-size-fits-all approach to guarantee success. The key to diversifying revenue streams is having a deep understanding of your audience and shifting toward hybrid monetization strategies that cater to their needs and yours.

The new revenue mix

Some viewers are willing to pay a premium for unrestricted access to content, but two-thirds of consumers prefer a cheaper, ad-supported streaming option. This means that for on-demand video, a balance of advertising-based video on demand (AVOD) and subscription-based video on demand (SVOD) is the way to go.

These flexible models also make way for creative user-acquisition strategies across publishing and broadcast networks.

Maybe a media company starts with an online platform providing a free, ad-supported sneak peek at the premium content offered on a subscription-only CTV app? Or maybe certain sporting events or shows are ad-supported, while other content requires a different subscription tier? There are even opportunities to license certain content to various streaming services while offering unique, behind-the-scenes access through other platforms.

This new world of digital media allows for flexibility for media owners and audiences alike.

Getting creative with real-time shopping

Streaming video further brings unique opportunities to maximize real-time engagement with interactive content.

For example, many broadcasters and publishers are experimenting with live shoppable ads that give viewers real-time access to purchase the products they see on-screen. A great example of this is the partnership between Netflix and Google for the latest season of Emily in Paris, where viewers scanned the screen to instantly shop the characters' looks.

This was an organic way to tap into the fans’ love of the outfits on the show while also driving ad revenue.

But it’s not only entertainment content that could take advantage of interactive, shoppable ads — viewers watching home-renovation content, for example, could purchase the tools and supplies they need while learning how to tackle their next DIY project in a lean-back watching environment.

The possibilities are endless to bring in coveted brand dollars while boosting viewer engagement and keeping audiences locked into content for longer.

Critically, when these creative, interactive opportunities are combined with existing advertising and subscription models, media companies can create an innovative hybrid model for maximum profitability.

Embracing mobile viewing

But it’s not just the channels we watch that have changed — the way we consume video content has also undergone a seismic shift, with almost 70% of digital video content in the United States being viewed on a smartphone.

Prioritizing the mobile viewing experience is key.

Mobile phone users hold their phones upright 94% of the time, so offering vertical video feels natural and gives viewers an immersive, full-screen experience that keeps them engaged. BuzzFeed’s Tasty section does a great job of pairing TikTok-style vertical videos alongside recipe content, giving readers the chance to not only read a recipe but to immerse themselves in the step-by-step process on their phones.

When it comes to monetization, there’s a unique opportunity for publishers to attract brand dollars from separate budgets, since vertical advertising is typically managed by a brand’s social or mobile investment team versus the video team that handles other ad buys. This can lead to expanded brand partnerships, more revenue for the publisher and increased reach for advertisers that can now repurpose social creative to engage an even broader audience.

Striking a balance

As publishers and broadcasters continue to adapt to new content consumption modes and habits, the key to finding success lies in striking the right balance between monetization and user experience.

While the playbook might look different for every publisher and broadcaster, the one constant is that the media companies best positioned to win are the ones that deeply understand the needs of their audience and are flexible and open to offering multiple strategies and hybrid models.

This op-ed represents the views and opinions of the author and not of The Current, a division of The Trade Desk, or The Trade Desk. The appearance of the op-ed on The Current does not constitute an endorsement by The Current or The Trade Desk.