Streaming Apps Drive Sales Growth During Pandemic: Discovery’s Jon Steinlauf

Streaming Apps Drive Sales Growth During Pandemic: Discovery’s Jon Steinlauf

The coronavirus pandemic led many advertisers to pull back on media spending in the past few months, but broadcasters have found pockets of strength in their streaming media platforms. Discovery forecasts that it will end the second quarter with higher ad sales than a year earlier for its streaming apps, which are a key part of its strategy to help advertisers reach younger audiences and higher-income women whose viewing habits are changing.

"We think there's going to be a shortage of ad-supported impressions for upscale female viewers," Jon Steinlauf, chief U.S. advertising sales officer at Discovery, said in an interview.

"Those are the viewers that are moving over to streaming services more frequently." In this episode of Beet TV’s “TV Reset” forum, presented in collaboration with VAB, Steinlauf speaks with Doug Ray, chief executive of media at Dentsu Aegis Network Americas, about the shifts in viewing habits and how streaming complements linear TV.

Discovery's brands include a variety of lifestyle channels whose content is well suited for homebound consumers who are cooking more frequently or who have more time for do-it-yourself projects -- including the setup of a work-from-home space.

Food Network, Cooking Channel, HGTV, DIY and Magnolia are among its lineup of channels, which also includes Discovery and TLC.

Each channel has a complementary app that authenticated pay-TV subscribers can access for no additional cost.

Its advertising-based video on demand (AVOD) platforms extend the reach of its linear TV schedule among younger viewers.

Its programming also is appealing to women consumers, who make most of the purchase decisions in U.S. households, studies have shown.

Steinlauf sees an opportunity to reach those viewers who favor video streaming, but don't see ads on the three most popular streaming services: Netflix, Amazon Prime Video and Disney+.

"We're seeing about 25% of the viewership shifting to a platform that only carries about 5% of the advertising," Steinlauf said.

You are watching TV Reset, a leadership forum produced in partnership with VAB.

The series is presented by 605 and The Rubicon Project & Telaria.

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