The news: Apple is the next streamer to cave into the ad-supported video (AVOD) trend. The company is considering launching ads for Apple TV+ as early as 2023, Digiday reports.
After all, why not? Why shouldn’t Apple TV+ get in on the AVOD pile, especially if every other major streamer is doing it? Even the historically ad-averse brands like HBO and Netflix have made space for ads, so Apple’s move will go over much more smoothly.
It’s not just about streaming ads: Apple TV+ getting ads may seem like an obvious domino falling in a recent trend, but Apple’s ad ambitions go far, far beyond streaming.
The big takeaway: It’s only natural that Apple would want a slice of the AVOD pie that so many streaming competitors are eager to get in on. Its existing ad technology and tech background could spare it the expense of a costly ad partner, but because its reach is much lower than Disney or Netflix, it may not be able to cash in on the trend of higher and higher CPMs (the cost per 1,000 impressions).
This article originally appeared in Insider Intelligence's Marketing & Advertising Briefing—a daily recap of top stories reshaping the advertising industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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