How the metaverse, AVOD and first-party data will disrupt 2022

Over the past two years we’ve faced unforeseeable change at an unrelenting pace. Despite the ongoing pandemic, we’re finally witnessing a rebalancing of advertising and marketing investment across channels. Growth and innovation are on the horizon.

However, a new array of challenges—including a wave of media mergers, adaptive approaches to content and new privacy regulations—will once again shake up the market in the critical year ahead.

In Kantar’s annual Media Trends and Predictions report, we dive deeply into the key areas to watch in 2022. A mix of evidence-guided predictions and insightful thought leadership, this report provides a clear view of the media world and acts as a cautious guide for the next stage of recovery.

So, what are three major areas we predict will have the greatest impact next year?

1. Video streaming: SVOD will no longer be the crown jewel

Streaming services are quickly becoming the center of the media universe, but the subscription model may struggle to drive long-term growth. The competition for attention and content in this crowded marketplace is incredibly fierce, and the cost for some subscription video-on-demand (SVOD) platforms is increasing.

In 2022, we predict business models will expand beyond a sole subscription offering to include hybrid as well as ad-supported video on demand (AVOD) offerings. A prime example of this diversification is Disney’s simultaneous release of “Black Widow” in both theaters and on its premium streaming platform.

Accelerated by the pandemic, this is a huge area of opportunity. In fact, AVOD expenditures for TV episodes and movies, as well as forecasts, point towards triple-digit growth over the next five years, reaching $66 billion across 138 countries.¹

But don’t count out linear just yet. Viewers will eventually want some form of unification among the growing number of streaming platforms. These overlapping ecosystems are poised for future partnerships.

2. Commercial internet: No one solution will replace cookies

Even though Google delayed its plans by two years, third-party cookies will eventually come to an end. In the wake of this monumental change, 60% of advertisers predict that enhancing their own data using intel from other sources will become even more important in the coming years.²

Marketers and advertisers need to assemble a new portfolio of tools as well as shift to first-party data strategies to fill this essential knowledge gap.

We anticipate the market to respond with radical new approaches to data, including more proxy-based targeting systems and contextual ad tech. The larger platforms will incorporate machine learning and cryptographic techniques to add new layers of privacy and compliance.

3. Performance media and marketing: The rise of the metaverse and opportunities

Advertisers’ newest playground is where our physical world meets new digital realities.

In 2021, the early stages of the metaverse piqued the world’s attention. Now, leading advertisers in the Brazilian market, including Ambev and Boticário, have started infiltrating the metaverse, integrating their brands into gaming environments such as Avakin Life, Grand Theft Auto and Twitch. Soft drink company Fanta even created immersive experiences on Fortnite.

Facebook took a large leap of faith by rebranding itself as Meta to better align with virtual reality and augmented reality platforms, and aims to hire 10,000 people to build its own metaverse.³

The metaverse will open a wide range of opportunities for virtual shopping, product testing and new interactive ad formats, as well as offer insights and research into new audience behaviors—behaviors unlike any before.

Whether integrating the metaverse and virtual world aligns with your strategy, this emerging space offers another reminder to continually assess your media mix.

For more predictions about what’s to come in 2022, download Kantar’s 2022 Media Trends and Predictions report.

Sources

¹Research & Markets Global AVOD Forecasts 2021

² Kantar Global Advertiser Study 2021 – Data strategies for brand growth

³BBC News 18 October 2021

⁴Meta Newsroom