Research released today revealed that advertisers spent more than $369 million across streaming services in Q1 2022, down 6 percent on the holiday season but up 5 percent on Q3 2021.
MediaRadar surveyed 1,400 companies advertising over 3,000 brands that invested on ad-supported streaming platforms in the first quarter of 2022, including Hulu, Peacock and HBO Max.
The results revealed the top five spenders for the quarter: Berkshire Hathaway, Capital One, Microsoft, State Farm and Verizon. Together these companies exceeded $49 million in ad spend, making up 13 percent of total streaming investment for Q1.
According to the study, 72 percent of advertisers that advertised on streaming platforms in 2021 have not yet returned in 2022. At the same time, Q1 has seen 25 percent of companies advertise across streaming platforms that did not in 2021.
These statistics suggest that streaming is seen as a test lab for running campaigns, with “strong investment” among newcomers but little attraction to come back. “As we come out of the pandemic and this form of media stabilises, it isn’t surprising advertisers are testing advertising on OTT platforms,” said Todd Krizelman, CEO and Co-Founder of MediaRadar.
Plans to introduce ad-supported options on the most popular streaming services pose further investment opportunities in the sector. In spite of an increase in membership cancellations due to rising subscription prices and costs of living, 1.88 billion people are expected to use streaming services such as Netflix and Disney+ in 2022, both of which will add advertising in the coming years.
As a result Krizelman is optimistic, “despite the dip in overall investment” in the streaming space so far this year. “It is still a great place for advertisers to stand out and not have their message lost,” he said.