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Discovery+ Brings a Unique Flavor to OTT—Which Advertisers are Taking a Bite?

Discovery+, launched in January 2021 as a leading non-fiction streaming service with over 20 million subscribers by Q3 2021, attracts advertisers like Kraft Heinz, Lowe’s, and Toyota by offering diverse real-life content from brands such as HGTV and Food Network, a variety of innovative ad products, and data integration tools, resulting in over 540 advertisers and a 15% monthly growth rate in advertising since August 2021.

In January 2021, Discovery+ launched, offering the world’s largest collection of non-fiction content. By the third quarter of 2021, Discovery+ had surpassed 20 million paid subscribers, exceeding internal targets. A partnership with Verizon helped boost its audience by offering select customers 12 months of Discovery+ for free.

Like many new streaming platforms, Discovery+ operates on an ad-supported model. At launch, advertising partners included Kraft Heinz, Lowe’s, and Toyota.

Discovery+ Woos Consumers with Real-life Entertainment

Discovery+ features over 60,000 episodes from brands such as HGTV, Food Network, TLC, the BBC’s Natural History collection, and A&E Networks’ Group Nine. The platform also became the streaming home of the Olympic Games in Europe and Eurosport’s premium sports content. Content from the Magnolia Network, led by Chip and Joanna Gaines, is also included.

David Zaslav, President and CEO of Discovery, Inc., described Discovery+ as the definitive product for unscripted storytelling, offering a distinct and differentiated experience across lifestyle and real-life verticals.

What Does Discovery+ Promise Brands?

OTT ad revenue increased by more than 1265% between 2010 and 2019, making the OTT space highly competitive. Discovery+ aimed to attract advertisers with a suite of streaming advertising solutions designed to drive engagement, reach younger demographics, and amplify advertisers’ messages across its platforms.

The suite includes eight types of ad products:

  • Green-Light ads
  • High-Light ads
  • Lime-Light ads
  • Stop-Light ads
  • Showcase ads
  • Spot-Lite ads
  • Marquee Collections
  • Search-Light ads

Advertisers also have access to OneGraph, a tool that connects data across Discovery’s linear and digital platforms.

MediaRadar Insights on Discovery+

Since MediaRadar began tracking Discovery+ advertising on August 1, 2021, the platform has hosted more than 540 advertisers, growing at an average monthly rate of 15%. Advertisers have spent approximately $29 million on ads, making Discovery+ the lowest-earning platform in terms of ad revenue among its peers.

Despite lower overall revenue, Discovery+ excels in attracting advertisers from certain industries, particularly Retail and Food. Retailers accounted for 22% of all 2021 Discovery+ advertising, more than twice that of any other channel. Discovery+ also sells five times more Food advertising than the four other major ad-supported OTT platforms reviewed, making Food one of its top five categories.

Discovery+ Ad Dollars and Brands are Increasing

Of the 211 brands advertising on Discovery+ in December 2021, 80% (168 brands) were new since August, indicating growing interest. In December 2021, there was a 90% month-over-month increase in ad dollars.

Top five categories for December 2021:

  • Food: 10% of ad buys
  • Retail: 22%
  • Media: 11%
  • Restaurants: 9%
  • Tech: 9%

Top Advertisers on Discovery+

  • Kraft Heinz Company (brands include Kraft Mac & Cheese, Grey Poupon, Lea & Perrins)
  • TJX Companies (brands include Marshall’s, Homegoods, T.J. Maxx)

Discovery+ Ad Analysis

Ads Per ShowAds per Hour
Discovery+7.210.5

Discovery+ has a mid-range ad load compared to other OTT platforms. Features like “Spot-Lite Ads” reward binge viewers with reduced ads, and “Lime-Light Ads” offer limited commercial interruption. There is an almost even split between 15- and 30-second ad spots.

Are Discovery+ Ads a Smart Buy in 2022?

While Hulu is often the go-to for OTT advertising due to its large audience and established capabilities, Discovery+ presents a unique opportunity. OTT accounts for only 3% of all digital ad spend, meaning there is room for brands to be early movers, especially on Discovery+, which had the second fewest advertisers during the tracking period.

The low ad load on Discovery+ creates a better experience for consumers, potentially making them more receptive to ads. With 173 million consumers per month and an upcoming merger with WarnerMedia (HBO’s owner), the ad-supported OTT ecosystem is expected to change significantly, offering even greater opportunities for advertisers.

Allocating ad dollars to Discovery+ in 2022 could be a strategic move, especially before competition increases post-merger.

Note on Methodology: MediaRadar’s data covers both standalone streaming platforms and TV Anywhere viewing from top linear networks. Standalone streaming services are sampled from ad-supported streaming packages, across profiles in the 18-34 and 35-49 TV demos.