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    Home»News»Streaming TV Advertising: What Is It and How Does it Work?

    Streaming TV Advertising: What Is It and How Does it Work?

    Trevor James.cBy Trevor James.cApril 29, 2022No Comments6 Mins Read
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    Just like the internet has changed the way people think, speak and act over the years, streaming advertising has also affected the way viewers consume television content.

    OTT advertising, also referred to as streaming advertising, is an advertising method where brands and businesses supply consumers with content via subscription streaming services without the need for the more traditional cable box.

    The advertisements these viewers see while streaming their content are referred to as streaming TV ads, and they provide advertisers with the opportunity to reach audiences that might have previously been unavailable to them. Yes, people still watch television and enjoy their favorite live shows on traditional TV, but advertisers are leaning away from the regular TV commercials from back in the day.

    Streaming TV Advertising

    Ads on both television and streaming networks are getting shorter and shorter as both Streaming TV Advertising use AVOD compete with the trend of viral videos and the shorter attention span of the viewers. 

    Networks like CBS, CW, ABC, and NBC have been given a real run for their money by streaming companies such as Hulu and Netflix. Advertising on streaming television such as YouTube TV, Hulu, or Amazon Prime Video has proven to be highly effective with these 15 – 30 second ads bringing in a view rate of up to 96%. 

    Netflix is the leader of the pack when it comes to on-demand TV shows and original premium content. For a monthly fee, viewers can even take personalized viewing to a whole new level and cancel ad interruptions completely on their PC, mobile devices, or any other gadget.

    Hulu is another major video-on-demand platform offering viewers’ favorite streaming content including TV shows and movies. Disney+ has made major waves in the community as well, especially since the platform became home to franchises like Star Wars and Marvel shows.

    Since these streaming services do not make their bucks from running ads, traditional cable networks have had to make many compromises to accommodate the new guys who are gradually taking over.

    What Does Streaming TV Offer?

    Advertising on streaming TV allows brands to pinpoint their target audience better. Companies can locate their target demographic and design an advertising campaign more efficiently with a higher chance of reaching potential customers and increasing sales.

    In the past, traditional TV advertising was the best bet when it came to getting products out there, but now with the advent of streaming across multiple devices, linear TV looks like it might be facing some even bumpier times to come.

    Streaming services, on the other hand, are the masters of coming up with innovative designs and advertising strategies to maximize viewers’ engagement with ads.

    Pause Ads

    These interactive ads show up when viewers pause their shows, movies, or whatever else they are streaming. The efficiency of this marketing strategy is still being questioned as many have said that viewers don’t necessarily look at their screens when they hit the pause button, thereby making this form of advertising counter-effective.

    Shoppable ads

    Already gaining popularity in broadcast channels, this advertising method offers viewers an even more convenient viewing experience. Shoppable ads provide scannable codes which take consumers directly to the brand, product, service, or shoppable page they wish to visit. This ad type eases the entire customer experience and is arguably the most efficient for audiences who want to enjoy a binge session from their mobile device and other digital platforms.

    Why Streaming TV Advertisement is More Effective than Traditional TV Ads

    Conventional TV continues to decline in viewership while online video ads rapidly expand. There is no better time to start running advertising on streaming TV than now.

    More Effective and Cost-Efficient

    Ad-based videos are not restricted to just one screen type, meaning that there is a wider reach and higher chances of reaching your target audience on a lower advertising budget. Streaming ads also allow brands to manage their budget more since they are significantly cheaper than traditional TV advertising. 

    A 30-second TV commercial would cost approximately $300,000, while online advertising costs next to nothing except you hire the services of digital marketing experts to optimize your content. 

    Streaming Ads are Flexible

    Streaming services allow brands to monitor, optimize, and evaluate their ads. Content can be changed and reshaped easily to fall in line with what the brand is trying to convey, and the success of the ad can be easily measured by going through click-through and conversion rates.

    Better Audience Segmentation

    Traditional TV ads are showcased to everyone who tunes in to a channel regardless of whether or not they are interested. Target marketing is much easier with a streaming advertisement. With OTT marketing, there are higher chances of audience penetration since there is a broader range of traits and preferences to work with.

    How to Create Ads for Streaming Services

    While traditional TV advertising and TV streaming advertising have different methods and strategies, the end game is still the same: to spread the word of products/services to a larger audience and create larger sales.

    Adequate Research

    Before creating content, conduct adequate research on some of the responsibilities that will fall on you as an advertiser, the platform’s clauses, and advertising policies. With services like Hulu, streaming and encoding fall completely on the platform, with your job limited to providing the online video ads. Other services, however, do not always offer the same liberties, so you must fully understand what your role will be.

    Ad Format Options

    Streaming platforms have created options for brands and companies to experiment and let their creativity shine with original content, but there are still the options of the regular 15 or 30-second ads. It is up to the brand to decide what they want their ad to portray, who their target audience is, and the streaming service they are using to decide on the best ad format option.

    There is no denying how effective marketing campaigns would be if they include OTT advertising. Digital marketing offers much tighter targeting parameters than television advertising, on a friendlier advertising budget. 

    This doesn’t mean that television advertising is completely out of the game; rather, most media companies today like to mix things up with a little of both digital and broadcasting.

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