Reader acceptance of ad-supported video opens door for personalised content

By Matthew Snyder

ResponsiveAds, Inc.

New York, USA


As a local media publisher, new, innovative ad formats might always be top-of-mind. But, with the growth of short-form video formats such as TikTok, Reels, and YouTube Shorts, the topic of revenue possibilities and approaches is definitely a key focus point for the local revenue strategist.

We are seeing large media companies like Disney, NBC Peacock, and Netflix moving forward with acceptance of ad-supported, advertising-based video-on-demand (AVOD). It is predicted that these services are going to enable tons of money for them.

According to OMDIA, global online video will generate US$259 billion by 2025. The big question is if there is a similar opportunity for local media publishers to utilise media streaming services and monetise with advertising. Given this acceleration of growth above all other methods of monetisation, it must be a strategy for local publications to offer some form of streaming local news as a service powered by AVOD.

In addition, according to the 2023 Media Trends and Predictions report, released November 16, 2022, by the media analytics and brand consulting firm Kantar, ad-supported models may be the solution to inflation concerns within the media industry.

Consumer acceptance

Market penetration of AVOD grew from 20% to 23% over the last 12 months, and consumers are getting more comfortable seeing ads on their favourite streaming shows. There is an indication that consumers are willing to accept streaming ads for content. And, there are increasingly more subscription services, so users have a lot of choice about the ads-based media they consume.

User consumption of advertising-fueled streaming services is surprisingly responsive. The captive experience streaming video can deliver has led to successful ad efforts. Consumer-technology market research outfit Parks Associates reports that 23% of ad-supported streaming video watchers “often” click on a video ad they see injected into their programming, with the same proportion indicating they actually buy goods and services being promoted within those advertisements. This is a tremendous opportunity for local publishers, driving more performance marketing for local brand retailers with shoppable experiences surrounding ads in video.

In other words, free ad-supported streaming services (FAST) can be a great complement to subscription fatigue by consumers. The FAST market in the United States alone is poised to reach 216 million monthly active users in 2023, according to a new study from nScreenMedia.


Google Ads Creative Studio (ACS)

If you have your streaming or video content already in place, there are some great new solutions from Google that launched this summer. The Ad Creative Studio (ACS) makes it fast and easy to build dynamic ads out of videos through a set of templates.

The Ad Creative Studio offers templates for dynamic ads.
The Ad Creative Studio offers templates for dynamic ads.

At a recent Google Marketing Partner Summit I participated in, we saw firsthand through demos the speed at which dynamic video ads from templates could be produced — less than 30 minutes! By choosing a themed video, you can change animated copy via text and audio can be dynamically delivered for local advertisers. ResponsiveAds is looking to offer templates and solutions with ACS offerings in 2023 for local publishers.

ResponsiveAds Fluid Designer (Creative Studio)

Similarly, ResponsiveAds Creative Studio offers the ability to build out dynamic messaging and content video ads. These have integrated display components on top of the video that can be exported for video, or run as HTML5. It has been widely used by publishers with their local clients. Here is an example of an Edeka Ad for the European market, bringing video and dynamic shoppable interactive into a carousel in the same ad unit. In future VAST 4.0 formats and beyond, this type of interactive ad will be a key part of the video experience.

ResponsiveAds Creative Studio offers the ability to build out dynamic messaging and content video ads.
ResponsiveAds Creative Studio offers the ability to build out dynamic messaging and content video ads.

You can also export this as a video or animated GIF with all dynamic local variants for non-interactive versions for your partners in 2023.


As we close out the fourth quarter of 2022, now is the time to start thinking about key high-CPM (cost per thousand impressions) revenue opportunities for 2023. Video streaming of local news powered by ad-supported formats should be a key strategy given some of the recessionary and inflation concerns existing today.

Dynamic video ad content personalised for your audiences in local markets can be produced in a fast and easy manner. It is a good approach for keeping costs down with scale. Google’s ACS as well as ResponsiveAds’ Fluid Designer are available with off-the-shelf templates that your design teams can use instantly.

About Matthew Snyder

By continuing to browse or by clicking “ACCEPT,” you agree to the storing of cookies on your device to enhance your site experience. To learn more about how we use cookies, please see our privacy policy.