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Streaming TV ads mix traditional TV advertising with the flexibility of digital advertising, making them an effective tool for brands of all kinds. In this article, we’ll answer questions about streaming TV advertising, including how streaming TV works and who should consider utilizing this type of advertising.
What Is Streaming TV?
Streaming TV is a type of television that’s delivered over the internet rather than through traditional cable or satellite services. Streaming TV allows people to watch TV shows, movies, and other content on-demand through nearly any internet-connected device like smart TVs, computers, tablets, and smartphones.
Streaming TV services typically operate through subscriptions, meaning users have to pay to access the content. However, some streaming TV services also offer an ad-based model, meaning users can access movies and videos with ads.
Over the past decade, there’s been a huge shift towards streaming that has changed how people consume media. People love streaming TV for the flexibility of being able to watch what they want, when they want to watch it.
What Are the Main Streaming TV Services?
Though there are countless streaming TV services, here’s an overview of the biggest ones.
Netflix
We can’t talk about streaming services without talking about Netflix. Netflix is known for its vast library of TV shows, movies, documentaries, and Netflix Originals, which span across almost every genre.
Amazon Prime Video
Amazon Prime Video is automatically included with a person’s Prime memberships and offers a range of movies, TV shows, and Amazon Originals. It also offers subscription-based plans and the option to rent or buy additional content.
Disney+
Disney’s streaming service is called Disney+ and features a collection of Disney movies, Pixar films, Marvel series, Star Wars content, National Geographic documentaries, and exclusive Disney+ Originals.
Hulu
Hulu offers TV shows, movies, and Hulu Originals, as well as live TV streaming with access to live sports, news, and events. Hulu offers subscription plans with and without ads.
HBO Max
HBO Max is WarnerMedia’s streaming platform. It features HBO content like Game of Thrones, Warner Brother movies, and a range of other movies and shows.
Peacock
NBCUniversal’s streaming service is called Peacock. It offers users a mix of movies, TV shows, news, sports, and Peacock Originals. It has both free and premium subscription options with ads.
Paramount+
Paramount+ gives viewers CBS network content including live sports, news, and original programming from CBS, BET, Comedy Central, MTV, and more.
YouTube TV
YouTube TV is a live streaming service that gives people access to live sports, news, and entertainment channels. Subscribers can also access YouTube Originals and other on-demand content.
ESPN+
ESPN+ is owned by Disney and is a sports streaming service that serves live sports events, original shows, documentaries, and access to exclusive content.
How Does Streaming TV Advertising Work?
Streaming TV advertising, also known as over-the-top (OTT) advertising, operates differently from traditional TV advertising since streaming platforms are entirely digital in nature and can therefore support a different style of advertising.
To start, it’s important to note that not all streaming platforms support advertisements. However, there are many streaming services like Hulu and Amazon Prime Video that have a mix of subscription-based content and free, ad-supported content. When ad-supported content is available, it means advertisers can purchase ad slots on the platform.
Advertisers can usually choose from various ad formats as well as ad timing, showing their ads before content starts, during content, or after content ends. Ads on streaming platforms are usually video commercials, but they can also be display ads and interactive overlays.
What are the Benefits of Streaming TV Ads?
There are many benefits that come with streaming TV ads, including the ability to target niche audiences, measure ad performance in real time, and quickly switch strategies for underperforming campaigns. Here, we cover a few of the main streaming TV advertising advantages.
Target Niche Audiences
Streaming TV advertising gives advertisers a way to target their most relevant audiences based on demographics like age, gender, online behavior, and geographic location. This type of precise targeting makes it possible to show ads only to viewers who are most likely to buy a product or service, which can make a big difference in click through rates and conversions.
Real-Time Bidding
Some platforms use real-time bidding to auction their ad space. When real-time bidding is an option, advertisers bid for ad slots based on their targeting criteria and budget. The highest bidder wins the auction and their ad is displayed to the viewer.
Detailed Analytics
When buying ads on streaming TV, advertisers will have access to detailed analytics that include things like ad impressions, views, click-through rates, completion rates, and other engagement metrics.
Integration with Data Management Platforms
Some streaming TV platforms integrate with data management platforms to improve audience targeting. Data management platforms allow advertisers to use both first-party and third-party data to improve the accuracy of their audience targeting.
Targeting Across Devices
Streaming TV advertising allows advertisers to reach viewers across multiple devices like smart TVs, streaming devices, mobile phones, and tablets. This means that ads have a wider overall reach.
Flexibility
One of the biggest advantages of streaming TV advertising is its flexibility. Advertisers can create engaging ads made specifically for streaming audiences. This includes interactive elements, personalized messaging, and creative formats that lead to better viewer engagement.
Who Should You Use Streaming Advertising?
There are many businesses who can use streaming advertising to drive sales, and you don’t have to be a big-box name to get started. Generally, any business that wants to reach a specific audience with targeted messaging can benefit from streaming advertising. This includes local businesses like restaurants, real estate agencies, and fitness centers that want to target people in their local area and drive foot traffic or online contact forms. Retailers can use streaming advertising to promote products and drive sales, especially during big shopping seasons or for new product launches. Additionally, industries like fashion, beauty, and health can use streaming advertising to target younger audiences who are heavy users of streaming platforms.
