Key Take Aways
Executive summary: 5 key take-aways for quick readers
- Streaming services generated revenue of nearly 93 billion euros in 2022.
- Publishers can benefit from high commissions of up to 12 euros per lead.
- Content related to series and movies has very high traffic and thus offers attractive monetization opportunities.
- In addition to current announcements about series and new releases, publishers should also focus on evergreen content.
- By working with platforms like mrge, publishers benefit from better terms and reduce their management overhead.
Market overview: streaming services
In 2022, Subscription Video on Demand (SVoD) services generated global revenue of approx. EUR 93 billion. Annual revenue growth of 8.89 percent is expected through 2027, by which time streaming services will have reached a market volume of EUR 130.80 billion. The introduction of ad-financed subscriptions is poised to further drive market growth.
Best-practice advertiser: Disney+
Commerce Advertising is an attractive way for streaming services to reach new users, promote their own programming, and strengthen their brand. But not every streaming service is equally successful with this approach. Disney+ is a top dog – and not just in terms of user numbers.
The success of Disney+ as an advertiser lies in its forward-looking planning and conscientious use of data: Having identified which target group can best be reached where, Disney+ chooses suitable publishers and, with sufficient lead time, plans campaigns for future content. Disney+ also plans the publishers’ placement of content well in advance.
Why are streaming services so attractive to publishers?
Reviews and other content related to streamed shows and movies are incredibly popular: Almost all users enjoy getting the latest scoop on their favorite series, or discovering hot new shows. For publishers, then, such topics usually guarantee traffic. Commerce Advertising lets publishers monetize this traffic and tap into appealing revenue via commissions. Speaking of commissions: Streaming services pay very high rates compared to advertisers in other industries. For example, publishers can earn up to 11 USD on a subscription to Disney+. With average commissions of below 4 percent in the electronics sector, publishers would have to generate sales of several hundred euros for the advertiser in order to earn roughly as much as they net from a single streaming subscription.
Three tips for publishers: Commerce Advertising in the streaming sector
1. Cater to your audience
Please clarify exactly what content interests your users. The more specific the target group, the narrower the range of possible topics. For example, a blog focusing on fantasy films has little streaming content to promote, compared to a general portal like kino.de. Nevertheless, you should not dilute your thematic focus in favor of higher commissions – otherwise, you risk losing your regular users.
2. Plan your content
Streaming services usually announce upcoming releases with a lead time of several weeks. As a publisher, you need to keep an eye on these announcements and prepare your content in good time. To keep users engaged, your content should be published less than a week prior to the streaming release.
3. Re-use your content
The SVoD sector offers publishers a wide range of possible content. In addition to announcements of new movies, shows, and seasons, entertaining listicles (like “14 Star Wars Plot Holes Bigger Than The Death Star”) enjoy continuous popularity. This evergreen content lets you generate traffic independently of current releases – and you can re-share it via social channels when the time is right.
What are the challenges for publishers?
Most publishers don’t want to work with just one streaming service – they’re looking to cover the widest possible range. However, this entails researching several partner programs, and then creating pitches. For smaller publishers, in particular, this mammoth task often ends in rejection.
With mrge, publishers can delegate the entire application and administration process, and focus exclusively on creating relevant content for their target audience. The application process for multiple partner programs, which often takes weeks, thus speeds up significantly, and publishers tap into ad budgets that would otherwise be unattainable. Plus, by bundling reach via the mrge platform, publishers often receive better conditions than those offered by the individual partner programs.
