Digital advertising has been changing and growing for many years now. As technology progresses, so do the ways to earn through technology. Streaming is now the new big thing, so it’s understandable that advertisers are taking the chance to find their benefits through this change. Matthew Nicosia explains that to do this properly, there will have to be a number of changes made to business models.
Matthew Nicosia Explains How Streaming Will Change
Dual Subscription Model
A dual subscription model is now the new thing. Companies will start offering ad-supported versions of their services, and have already begun to do so. In the past, Matthew Nicosia explains, the subscription allowed users to access the streaming services ad-free, but this is changing. Now, subscribers will have to pay to access content, and then pay a further, secondary amount to get rid of ads. This is very similar to the linear broadcast model that was followed on television.
Sports Programs are the Inflection Point
This dual subscription model will most likely see live sports as the inflection point, because of exactly how many people stream ongoing sports games when they are happening live. While streaming movies and TV shows may not necessarily encourage users to pay to remove ads, live sports games just might. Millions of people stream sports games around the world, so it becomes necessary for services to uphold the quality of their services to handle these streamers, says Matthew Nicosia. Removing ads will not be a viable long-term option.
Merging TV & Digital Campaigns
When TV was the main source of entertainment and marketing, there was no real way to target a specific audience with ads. The only option was to buy ad space and hope for the best. However, with the linear broadcast model being implemented, and taking place on a digital platform, advertisers will now be able to use this model to target specific audiences with their advertisements based on region, demographic, etc.
Why Streaming is Changing, According to Matthew Nicosia
As streaming video continues to grow, so does its audience. While in the past, this had provided a great opportunity for businesses to grow, the number of streamers that exist is very large. As Matthew Nicosia explains, when you consider that there are thousands to millions of people streaming every day, it becomes difficult to maintain the quality of service provided by streaming companies while also making a profit.
Therefore, it’s not a surprise that players are now moving towards the dual subscription model, and allowing advertisers to buy ad space. This will help them generate more money from their services, while also allowing users the option to avoid ads since there are clear disadvantages to not doing so.
In any case, the individual business will better understand how it needs to improve and what options it has given the current market conditions. While dual subscription models may work for some, it may not work for other streaming services.