Author: Jim Keller - Executive Vice President of Digital Ad Sales & Advanced Advertising, Warner Bros. Discovery
The past year has been a momentous one for ad-supported streaming services. Not only have we recently seen some of the biggest players in streaming launch lower-priced, ad-supported tiers of their own popular platforms, but according to Comscore’s 2022 State of Streaming analysis, consumers are gravitating towards ad-supported streaming services more so than they are towards SVOD [1]. According to the report, U.S. homes using AVOD streaming services in 2022 increased by 29% compared to a 21% increase in the same period for SVODs.
And soon, Max will enter the mix.
Just last week, Warner Bros. Discovery unveiled new details around the enhanced streaming service, which will launch in the U.S. on May 23 and bring together HBO Max’s can’t-miss programming and Discovery+’s engaging real-life entertainment content to create a complete viewing experience for all ages.
So, what should brands anticipate from the ad-lite tier of this enhanced and new-to-market streamer? And what will make a premium streaming offering like Max such a prime environment for advertisers and audiences alike? Jim Keller, EVP, Digital Ad Sales and Advanced Advertising at Warner Bros. Discovery shares initial details about what to expect when Max launches next month.
Unprecedented quality, variety and scale
[JK]: Max could not come at a better time, as we have seen both HBO Max and Discovery+ enjoy incredibly strong momentum.
Max offers unparalleled quality content for everyone in the household. With premium scripted series (and ratings hits) like Succession and The Last of Us, kids and family programming like Looney Tunes and Sesame Street, and genre-defining content about food, home, true crime, relationships, there is something for everyone, right within the Warner Bros. Discovery Connected TV ecosystem. It truly is “the one to watch.”
Max will be a world-class collection of globally recognized brands, franchises, series, and characters. The variety and scale will be unprecedented, as will the opportunities for brands to reach highly engaged audiences, all in a high-quality, premium environment, which as research continues to prove, drives more value for advertisers.
A recent study commissioned by PubMatic around attribution and efficacy in premium and non-premium environments [2] found that consumers trust platforms serving over-the-top (OTT) content and as a result, are more receptive to the ads that appear on them. The research found that ads in a premium content environment can benefit from a halo effect for brands – exposure to ads in premium OTT platforms improved unaided brand awareness, delivering a 37% uplift over exposure on non-premium video and delivers brand messages on average 1.9x higher.
One thing is clear: Quality matters for consumers. And campaigns that align with premium content will have a greater impact.
A coveted, premium ad experience unlike any other
At Warner Bros. Discovery, we believe ads should enhance the overall viewing experience rather than disrupt it. When it comes to the ad-lite tier of Max, our mission remains the same as it always has for our streaming properties: to deliver the most delightful, seamless experience to our customers, and to offer formats and packages for marketers that are good for them while intentionally connecting with consumers.
Ad placements on HBO Max and Discovery+ are already designed to complement and enhance the overall viewing experience and are thoughtfully surfaced across the content catalog in a way that maintains the integrity of the programming. A prime example is our current Brand Block offering on HBO Max with Ads, which brings consumers fewer and shorter commercial breaks courtesy of a sponsored content takeover from a brand.
A relevant consumer viewing experience will continue to be a central focus of Max, where brands will have the opportunity to be a part of the most coveted viewing experience in the streaming space and tap into a newly harmonized suite of proven ad products and solutions that focus on top of funnel awareness all the way down to bottom level conversion.
Looking ahead
Even with such tremendous growth and innovation over the past year, we realize it can be challenging for brands to successfully navigate this bustling landscape – especially those new to advertising in a premium streaming environment.
There has never been a more prime moment for brands to leverage the power of premium storytelling and reach highly engaged audiences where they are. On May 23, we will begin a new chapter of this rewarding journey for brands and audiences alike with Max, and we look forward to getting started.
1: “Americans Are Adopting Ad-Supported Streaming Services at a Faster Rate Than Non-Ad Subscription-Based Streaming Services, Signaling a Shift in the Market” https://www.comscore.com/Insights/Press-Releases/2022/6/Americans-Are-Adopting-Ad-Supported-Streaming-Services
2: “Video Advertising Efficacy in Premium OTT and Non-Premium Video Environments” https://pubmatic.com/wp-content/uploads/2021/04/PubMatic-Infographic-Video-Advertising-Efficacy.pdf