Good news: People seem to be ditching screens and reconnecting with the outside world.
Bad news: That means less media engagement and less revenue for ad-supported streaming platforms.
Ad supported media made up 53.7% of screen time in 2022 – a drop of almost 5% since 2017.
Slow poke: Growth is predicted to be within single digits for the first time in years, and the reasons are multiple…
- Media engagement grew rapidly in 2020 as the pandemic started and then saw a rapid decline in 2021 when lockdown measures loosened.
- The ongoing economic crisis forced people to cut back on unessential spending, with media platforms being at the top of many people’s lists.
- Smartphone adoption is reaching saturation, slowing growth and consequently consumption.
But there’s still hope: Netflix’s ad-supported tier reached one million users, which shows it’s still gaining momentum – a positive sign after a bumpy start.
Also, numbers in 2022 were a bit higher than expected, boosted by big events like the FIFA World Cup and US midterm elections. Meanwhile, film and home video saw the fastest growth rates – meaning people still want to consume media.
Why we care: If you’re thinking about running such ads, make sure you’re aware of the slower growth this year and plan your campaigns accordingly.
And if your results just aren’t what they used to be, well, it may not be entirely your fault.
