Virtual pay TV operator Fubo on Thursday formally announced that its pause ad format is now available programmatically, claiming to be the first connected TV platform to provide that automated method of buying for the pause ad format
In terms of ad tech, programmatic execution for pause ads is being powered by ClearLine, Magnite’s self-service buying platform. New York-based streaming company FuboTV now supports both programmatic guaranteed (PG) and biddable private marketplace (PMP) pause ad executions.
FuboTV launched pause ads last year, delivering commercials to viewers a few seconds after they press pause on their remotes. These ads disappear when the user resumes their stream, and the format can also include a QR code for additional engagement opportunities.
“The excitement around interactive ad formats like pause ads has only increased and now brands have more flexibility to activate against our robust lineup of live sports, news and entertainment content,” said Jennifer Hess, VP of global ad operations for FuboTV, in a statement.
Based on its internal data, FuboTV said pause ads drive 33% better viewer engagement versus video ads alone.
FuboTV’s latest effort to innovate its advertising business comes after it reported a 17% YoY drop in first-quarter ad revenue to $22.8 million, although the company attributed the result to program licensing disputes with Warner Bros. Discovery and TelevisaUnivision.
During FuboTV’s Q1 earnings call on May 2, CFO John Janedis spoke positively of advertiser demand for the company’s new ad formats, interactive ones in particular. FuboTV has launched a number of new ad formats over the past several quarters, and Janedis told equity analysts that the streaming company was “really starting to see some good traction” from them. He said sales of interactive ads were up 37% YoY in Q1.
And at its NewFronts presentation last year, FuboTV showcased a range of new ad formats, including not only pause ads and interactive ads, but enhanced banner ads and marquee ads.
FuboTV, meanwhile, remains focused on closing a deal, announced in January, that would combine its operations with Hulu + Live TV under the Walt Disney Company umbrella. In addition to settling an antitrust suit with Disney over the since scuttled Venu Sports joint venture, FuboTV agreed to take $220 million in cash and a $145 million loan.
FuboTV, which has from its beginnings marketed itself around live sports, said it will soon launch a more refined sports bundle, in collaboration with its prospective new owner.
The streaming company’s stock price, which had flirted with low-level junk-bond flight paths, is up over 163% YTD following that announcement.
But the merger is no regulatory slam dunk, with the prospect of Disney acquiring another virtual MVPD has raised the awareness of the U.S. Justice Department.