04 Oct Take Advantage of Advertising on Streaming TV
Streaming TV goes by many names—OTT (over-the-top), CTV (connected TV), advanced TV, and more. But no matter what you call it, streaming TV has a powerful impact on advertising and presents many opportunities for businesses to reach their target audience. After all, there are over 130 streaming services available, not to mention many audience targeting opportunities.
With its multiple benefits and continual growth, now is the time to take advantage of advertising on streaming TV.
WHAT IS STREAMING TV ADVERTISING?
Streaming TV advertising refers to running paid advertisements on streaming services such as Hulu, Amazon Prime Video, or YouTube TV. These ads typically run in either 15 or 30 second segments, with up to 96% view rates, proving them to be an extremely effective form of advertising. Even more, streaming ads can claim to boost brand perception by 32% more than traditional TV.
In addition, more than 40% of the streaming audience was not reached by traditional TV ads. With addressable, behavioral, and demographic targeting options—combined with the opportunity to include various segments to meet business’s target audience(s)—advertising on streaming TV has proven itself to be a powerful advertising method.
BENEFITS OF ADVERTISING ON STREAMING TV
The benefits of advertising on streaming TV go beyond the targeting options and view rates. This strategy also offers brands the opportunity to reach highly engaged viewers on a targeted, impression basis rather than the mass-audience coverage and cost of broadcast TV. Streaming TV allows advertisers to target audiences based on a variety of factors, including keywords, zip code, DMA, and interests. It also offers the ability to utilize multiple demographics within a campaign in order to better focus in on a brand’s core audience.
Ads are also non-skippable, but limited to two or three per break so consumers do not feel inundated with messages at one time. In addition, a frequency cap can be placed at 3x per viewing session, so the message stays top of mind with a consumer but does not become an annoyance. Much like a digital program, streaming TV advertising also allows us to report on when and where spots were viewed during a campaign and on what type of device it was viewed.
THE GROWTH OF STREAMING TV
Throughout 2020, streaming TV has seen tremendous growth due to the COVID-19 pandemic. Comparitech provides some insight into this growth. For example, Netflix grew to an astounding 183 million subscribers in 2020, partially due to the 16 million subscriber growth in 1Q. This means that Netflix accounts for almost a third of all video streaming.
Netflix is followed by YouTube, which accounts for 21% of video streaming and has an astounding 2 billion users each month. Other notable platforms include Amazon Prime video (150+ million subscribers) and Hulu (32 million subscribers).
Although some streaming services do not offer advertising opportunities (such as Netflix), there are other popular services that do, such as Hulu, TLC, Pluto, and ESPN. Other popular streaming services with advertising opportunities include Sling and Roku. When businesses consider that US consumers subscribe to an average of 4 streaming services, there are multiple opportunities for businesses to reach their target audiences.
FAQS ON ADVERTISING ON STREAMING TV
Is streaming advertising better than cable?
Although streaming advertising has some unique benefits, it is important not to ignore cable advertising completely. According to Comparitech, more than 4 in 10 US consumers are subscribed to both a streaming service and traditional TV, which indicates the importance of advertising on both platforms.
What are some tips for streaming advertising?
The first step when getting started with streaming advertising is to set an advertising budget for your business and determine how much you are willing to dedicate to a campaign.
After determining both your business’s advertising budget and the budget allowance for streaming ads, the next step is to create the ad’s elements. This would include the script, video, and audio—a 30 second ad is the most commonly recommended. If you need help with these elements, Media Venue is happy to provide these services and create an ad that matches your goals. We can also help identify the best audiences for your ad in order for it to have the most impact.
HOW TO GET STARTED WITH ADVERTISING ON STREAMING TV
Streaming TV can elevate a brand to the next level and compliments all other forms of traditional or digital advertising. With such a wide (and growing!) audience as well as many opportunities to reach your target audience, now is the time to get started with streaming advertising. For more information, give us a call at 502-855-4780 or email our Media Director to discuss how we can incorporate streaming advertising into your business’s marketing plan. Enhance your marketing investment with Media Venue!
*MAGNA GLOBAL is the strategic global media unit responsible for forecasts, insights and negotiation strategy across all media channels on behalf of Mediabrands. Part of Interpublic Group (NYSE: IPG), MAGNA works with the brands within these respective holding companies on behalf of their clients.
“21 Vital Questions to Ask Over the Top (OTT) TV & Connected TV Advertising Compannies.” Propellant Media.
Cook, Sam. “30+ Video and Music Streaming Statistics [2020 Edition].” Comparitech, Comparitech, 8 Aug. 2020.
“Cord Cutting Statistics: Streaming & Cable TV Stats.” Mediakix, Mediakix, 18 Dec. 2018.
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