There are currently close to 7 million daily OTT viewers in the Nordics. Despite a positive viewing trend, the online video ad market (AVOD) is facing headwind. The usage of ad blocking services, that allows users to browse around the web without being exposed to ads, is increasing rapidly across the Nordics. Apple’s entry into this space has certainly not made things easier for the industry.
Across all Nordic markets, AVOD services’ share of viewing (SOV) is decreasing in favour of paid services such as Netflix, HBO Nordic and Viaplay. Adding to the publicists’ challenges, is an increasing usage of ad blocking services such as AdBlock and Adblock Plus.
Over 40% of daily OTT viewers use a service to block ads. The heaviest usage of ad blockers is among the most frequent OTT viewers, i.e. young men. While usage is increasing rapidly, publicists apply different strategies to counter this trend. Some allow ad block users to consume content without restrictions, whilst others try to limit the users’ experience in one way or another.
– Ad blocking services pose a serious threat to any OTT actor that rely on ad financing, says Marie Nilsson, CEO of Mediavision. The message from the consumer is clear; either pay to avoid ads or block them. The question is how the industry will respond to this threat and whether it will have an effect on consumption in the long run.
Mediavision follows the development of the emerging streaming market closely.