Big Streaming Companies Have Realized They Need An Ad Tier; Collaborate With GroupM to Streamline Ad Processes

Walt Disney Co DIS, Roku, Inc ROKU, Comcast Corp CMCSA NBCUniversal, and Alphabet Inc GOOG GOOGL YouTube collaborate with GroupM, WPP's media-buying unit, to simplify ad buying in streaming environments. 

GroupM's partnership with these media giants and ad-tech firms like KERV and BrightLine aims to innovate advertising formats on streaming services. 

This initiative is crucial as more viewers shift to on-demand streaming, often seeking to avoid ads, the Variety reports.

Mike Fisher, GroupM U.S.'s executive director of investment innovation, emphasizes the potential to shape the future of advertising in this evolving media landscape. 

As traditional TV viewing declines, advertisers must adapt their strategies to diverse streaming platforms like Peacock, Netflix Inc NFLX, and Hulu. 

Each platform's unique technology necessitates customized, interactive, or addressable advertising approaches.

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The introduction of Amazon.Com Inc AMZN Prime Video's ad tier further complicates the scenario. 

GroupM forecasts a significant increase in connected TV ad investments, predicting a 14.9% rise in North America in 2024. 

The consortium aims to encourage media outlets to align more closely with advertisers' needs, focusing on effective advertising beyond click rates or engagement times.

GroupM plans to expand its partnership to include more media sellers, benefiting clients at its agencies like Mindshare, Wavemaker, and EssenceMediacom. 

The group will initiate its efforts in early 2024, holding quarterly meetings to set goals, launch pilot programs, develop standardized ad formats, and establish new evaluation standards.

The working group will collaborate with GroupM advertisers interested in testing new formats and processes. 

This benchmark testing, set to finalize in early 2024, is crucial for planning the industry's next upfront market, where media companies sell most of their commercial inventory for upcoming programming.

Also Read: Universal Dethrones Disney as Box Office Leader with Diverse 24-Film Portfolio

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.