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6 facts you need to know about digital video in Canada and Western Europe in 2022

Canada

Digital video viewership is being propped up by connected TVs (CTVs), which allow for easy access to streaming apps on the biggest screens in households. It’s not only viewers who benefit from the improved user experience; advertisers do too, thanks to evolving ad units that span linear and digital audiences across a variety of screens.

Key facts:

  • Audiences continue to flock to digital video as service choice expands and younger viewers steer clear of TV. Reaching these audiences has proved challenging for advertisers, especially with the dominance of subscription video-on-demand (SVOD) services like Netflix. But recent developments in Canada’s ad market are presenting new opportunities for media buyers and brand marketers.
  • Ad-supported video-on-demand (AVOD) is now reaching critical mass in Canada. Whereas SVOD services have traditionally attracted the majority of audiences, ad-supported tiers are now becoming the norm. Netflix launched ads in early November, which will likely usher in a period of similar launches from other OTT players. AVOD options are becoming more plentiful from new entrants to Canada and from domestic services.
  • Advanced TV solutions from some of Canada’s largest media companies are helping target users across traditional and digital formats. Data for targeting and measurement is somewhat nascent, but it’s a sign that holistic targeting across screens is attainable.

Western Europe

The pandemic fueled a bigger-than-expected increase in video viewing in 2020, and that audience is still growing. But given sharp rises in the cost of living, some consumers in Western Europe are cutting back on subscription video services.

Key facts:

  • Video viewer numbers in Western Europe will keep rising, despite market turbulence and some price increases for ad-free subscription services. Nearly 80% of internet users in Western Europe already watch digital video at least monthly. In 2025, that audience will number 300.1 million.
  • Subscription video providers are under pressure as most consumers face a cost-of-living crisis. In 2023, nearly 200 million people in the region—over 46% of the population—will watch paid-for video delivered via the internet, per our forecast. Netflix is the most popular subscription video service in Western Europe.
  • Many streaming services are introducing ads, but the advantages are difficult for brands to quantify.