Is SVOD content sticky enough to embrace the ’ad break’?

Their ad-free environments let creators explore narratives without commercial breaks, but then everything changed.

The model wasn’t sustainable. Now, most SVOD providers require the very same ads they were once a space to escape. They needed to increase revenue, altering their narratives and opening possibilities for brand partnerships.

First of all, is SVOD ready for the ad break as is?

Sticky enough?

For SVOD platforms to grow their advertising revenues, they need to produce content that keeps viewers coming back for more between episodes and through the ad breaks.

This becomes particularly important if we assume that SVOD providers want to increase the number of ads they can run in an ad break, which runs the risk of losing viewers. Sticky content has always been vital for encouraging audiences to watch an entire series, but now it is imperative that this content maintains its appeal and engagement throughout to encourage viewers to stay around past the hurdle of ad-breaks.

As SVOD platforms pivot towards ad-supported models, learning from writers who have thrived in traditional, ad-interrupted environments becomes crucial.

The need to write for ad breaks has resurfaced. We’re back to the days of linear TV where writers crafted content to maintain viewer engagement through ad-breaks.

Linear TV writers, who have honed the art of creating ‘sticky’ content that captivates audiences despite ad breaks, suddenly find their skills in high demand once again. Their expertise in maintaining narrative tension and audience retention across ad interruptions is invaluable in this new hybrid model of streaming content. A recent example of this is Disney+ nabbing Sally Wainwright (writer of the BBC’s Happy Valley) to write Disney+ show, Renegade Nell. Good content is good content, but Wainwright knows how to write for ad-breaks. We’ll likely see more attempts to bring in writers who can do this.

Seamless brand integration

For forward-thinking brands, this changing landscape presents a unique opportunity. SVOD platforms currently have short ad breaks but it’s not hard to imagine a commercial model where a brand sponsors the entire break, eliminating the need for traditional ad breaks.

Guaranteed, this would be a more costly proposition to the brand; however, with our ability to determine key programming based on shoppers’ behavior, accuracy could offset the increased cost.

This model would empower writers to craft uninterrupted stories but also the brand’s involvement could be seamlessly woven into the storyline, creating a more immersive and engaging experience for viewers allowing for uninterrupted storytelling while still delivering brand messages in a subtle, contextually relevant manner.

Arguably this opportunity is particularly present right now as many SVOD providers offer a 60-second ad break, something we’ve not seen on broad TV viewing in recent memory. That makes purchasing the entire ad-break particularly feasible right now.

Contextually relevant content

Beyond sponsoring content, brands could explore creating contextually relevant ads that enhance the viewer’s experience rather than disrupt it. With platforms like Netflix and Amazon Prime Video moving more viewers into their ad-tiers, there’s an opportunity to create ads that resonate well with all audiences. By understanding the themes and moods of the shows they sponsor, brands can develop ads that feel like a natural extension of the content.

Findings from Spark Foundry’s latest ‘Insights Accelerated’ report found that in Q2 this year, people felt that TV ads and YouTube ads are the most representative advertising channels, with advertising on SVOD platforms seeing a 10% increase in representation as more customers move onto their ad-tiers. With these learnings, we can craft more relevant, representative ads based on the content a person is watching. This strategy not only makes the programming ‘stickier’ but also fosters a more positive association with the brand.

This is particularly exciting given the generational shift back to TV screens, especially among Gen Z, who are used to targeted ads from other video platforms like YouTube and TikTok. This demographic not only welcomes targeted advertising but also expects it to be relevant and engaging. By leveraging these kinds of insights to create ads based on the content being watched, we can make ads feel like an integrated part of the entertainment journey.

The reintroduction of ad breaks in streaming services presents both challenges and opportunities for brands. In an age of abundant media choices, quality content remains key. SVOD providers must create and license ‘sticky’ content that captures attention, appeals to a diverse audience and builds a community. Understanding what resonates with your audience is vital to keep the viewers hanging around – so stay ahead of the curve with your storytelling and seize the dawn of the new video ad break.

Will McMahon is head of innovation and technology and Rebecca Candeland, head of AV at Spark Foundry UK. More from The Drum Opinion section here.