New Conviva Data Shows Significant Drop in Ad Demand Despite Quality Improvements; Streaming Growth Normalizing After Pandemic Peak
Conviva’s Q2 2020 State of Streaming Report Highlights Impact of COVID-19, YouTube’s Move to the TV Screen and the Rise of Smart TVs
Conviva, the leader in global streaming media intelligence, released its quarterly State of Streaming report for Q2 2020 , showing streaming video advertising saw a sharp decline in the past quarter with ad attempts in Q2 down 28% globally and 22% in the U.S. as compared to Q1 2020. The report also details the impact of COVID-19 with expanded regional benchmarks illustrating that while streaming continues to grow overall, it slowed in May and June as compared to its height in April when shelter-in-place orders drove streaming viewing up 81% year over year.
“Unfortunately advertising moved in the opposite direction with global demand significantly reduced due to COVID-19. We expect advertising to bounce back in the coming quarters as the industry and viewers acclimate to a ‘new normal’ including streaming being part of the everyday routine.”
Ad Demand Drops while Quality Improves
While advertising demand dropped in Q2, due in part to a lack of sports, streaming ads saw significant improvements in overall quality. Viewers spent 38% less time waiting for an ad to start in Q2 as compared to Q1 and as a result, pre-ad viewer-initiated exits dropped 22%. Ad picture quality also improved, with bitrate up 53%.
Despite quality improvements, nearly 45% of ads represented missed opportunities. The most common advertising issue continues to be the lack of demand as publishers try to fill ad slots, but no relevant ad is available.
Read More: UST Global Announces New Offerings As More IT Operations And Workloads Are Shifted To The Cloud
“Shelter-in-place mandates skyrocketed streaming viewership in April, led by Europe which saw a 174% increase year over year,” said Bill Demas, CEO, Conviva. “Unfortunately advertising moved in the opposite direction with global demand significantly reduced due to COVID-19. We expect advertising to bounce back in the coming quarters as the industry and viewers acclimate to a ‘new normal’ including streaming being part of the everyday routine.”
Streaming Device Growth: TV Sees Triple Digit Increase
Conviva uncovered significant increases in viewing as people tuned in natively within their smart TVs. Global share of smart TV viewing more than doubled as viewing time increased 239% year over year. Also bolstering television viewing were connected TV devices (Roku, Amazon Fire TV, etc.) which saw a 61% increase and game consoles a 55% increase in time spent streaming year over year.
Read More: SalesTechStar Interview With Roy Brockman, Director Of Marketing At SecuriThings
