Streaming Ad Services Will Have a Price War, Says MNTN CEO
Jan 6, 2023 2 Min Read
In the second half of the year, we saw companies like Twitter, Meta, and Snap pulling back on advertising, while streaming companies like Netflix and Disney+ launching ad-supported tiers to try to target consumers cutting back on their spending. CNBC’s Julia Borsten and Mark Douglas, Founder and CEO of MNTN, discuss what this will mean for the advertising market going into 2023.
When asked about his predictions, Douglas explains that the industry is in turmoil, “The biggest thing that’s occuring is with all this new content coming into the market from Netflix, from Disney+. That’s going to cause a price war. And so you’re going to see prices for ad inventory come down. They’re already coming down in Q1 and that’s going to last for a bit of time.”
But while he expects a rocky start to the year, Douglas also explains that there are way to combat this upcoming price war. “You have to get more demand into the market. And that’s gonna come from direct reponse advertisers, which ironically in a lot of case are spending less with Meta [and] less with Google. And so there’s a lot of change in this market—that’s the biggest prediction and especially for the television market. They’re gonna see a lot of turmoil in the first half of the year.
For the rest of the discussion, you can watch the video above or check out the below link.Link to Original Article