Sony LIV bets on pause ads; sets rates 2.5-5 times higher than usual

Sony LIV began offering pause ads on its platform earlier this month. A pause ad is an advertisement that appears when a user has paused or temporarily halted the content. These ads, which appear as banners beside the paused video, integrate a brand's message into the viewing experience without interrupting it.

These ads are visible to paid subscribers as well, and currently they appear only for the Connected TV (CTV) audience.

Ranjana Mangla, senior VP and head of ad revenue, Sony LIV, says, as a result, these pause ads are typically priced at a minimum premium of 2.5x, which can increase to 5x or even 7x depending on the content placement.

“CTV inventory is at a premium, and rightly so. While mobile offers personalised, one-to-one viewing, CTV has a minimum audience multiplier of three—often four in traditional TV terms—even conservatively estimated at two. This justifies the premium pricing for CTV ads, especially since they target the high-value SVoD audience,” she says.

Mangla says the platform is closely monitoring how its audience and the market are responding to it. Currently, it only has display ads, but it is actively exploring and testing various options, including video ads. Sony LIV allows brands to decide the narrative based on its objectives. The platform only ensures that it aligns well with the content without causing a disconnect.

“We're quite flexible and open to exploring what brands want to achieve with their briefs. At Sony, this approach applies to all our innovations—if it aligns well with our brand, we're willing to collaborate. We don't restrict innovations to specific objectives; instead, we encourage brands to bring their ideas, and we work together to explore possibilities,” she says.

Also Read: Streamers take a pause to serve ads; will brands play along?

Currently the streaming platform is using the ad format to promote its own shows, including its latest launch, Million Dollar Listing and Freedom at Midnight. 

Increasingly, OTT platforms in India are experimenting with this ad format. In June, Disney+ Hotstar introduced pause Ads exclusively for its Connected TV (CTV) feed, becoming the first platform in the country to implement this format. In an interview with afaqs! in July, Manish Kalra, chief business officer, ZEE5, announced that it will also be soon launching the ad format. YouTube announced in August that it will be allowing pause ads on its platform. 

Pause ads are a preferred format to include a specific call to action. Since the screen remains visible during the pause, brands can incorporate elements like QR codes that encourage engagement, such as signing up for something or redeeming a voucher. This format is more appealing to brands focused on click-throughs and direct conversions. Meanwhile, for publishers, pause ads can unlock a new revenue stream and offer an opportunity to enhance the viewer experience.