In the decade and a half since Netflix popularized over-the-top (OTT) video consumption, streaming has become synonymous with television. We now use streaming TV to catch up on the daily news, binge-watch reality shows, and cheer on our favorite teams. Today, streaming accounts for almost 40% of all TV usage — with 93% of internet users reachable via streaming TV.
Marketers must adapt to this reality.
And luckily, there’s never been a better time to make the plunge into connected TV (CTV) advertising. Ad inventory grows each day as more users trade in their expensive subscription plans for ad-supported alternatives. These include hybrid video on demand (HVOD) services like Netflix’s “standard with ads” plan, as well as free as-supported streaming TV (FAST) services like the Roku Channel.
What’s more, premium live sporting events have also made the move to streaming — giving advertisers access to hyper-engaged viewers gathered around the living room TV. Cord-cutters can now easily watch NFL, MLB, NBA, MLS, and NHL games without giving cable or satellite another thought.
But advertisers making the move from traditional TV media buying to streaming TV shouldn’t approach it as a simple lift-and-shift. Getting it right means taking advantage of the nuanced opportunities that programmatic advertising delivers and adapting your strategy to this unique environment. Many agencies and brands also find that CTV advertising is complex and requires dedicated expertise. For these reasons, you’ll want to resource your efforts accordingly.
In this guide, we dive into how CTV campaigns differ from traditional TV advertising, which platforms serve ads today, and best practices to implement. Read on for all the details — or navigate to the section of your choosing below.
Also called CTV advertising, streaming TV advertising describes ads that play during video content that’s delivered over the internet — such as any commercial you’ve ever watched on Hulu, Sling TV, or a FAST service like Amazon Freevee.
Streaming TV ads now support both video-on-demand (VOD) content and linear programming, but they still differ from traditional TV ads in a number of ways. The primary reason for this is that streaming TV ads are delivered programmatically. This means that ad spots are purchased via automated auctions — and are generally selected based on the audience consuming the content rather than the content itself. Thus, advertisers are able optimize their ad spend by only targeting relevant buyers (rather than running a generic commercial to every person watching a given show).
At its core, streaming TV is digital. This is what allows CTV ads to be served programmatically.
For the purpose of illustration, let’s say that Jane Doe is watching her local team play Thursday Night Football with an over-the-air antenna, while her out-of-town brother, John Doe, is streaming the game on Amazon Prime.
During Jane’s commercial break, a generic ad for a large insurance company plays while she heads to the bathroom. The commercial has little relevance to her life and achieves nothing other than keeping the company’s name top of mind. What’s more, the media buyers who purchased the spot can’t report anything meaningful about the campaign because they lack visibility into the data.
Meanwhile, her brother John sits tight during the commercial break because the ads align with his hobbies and purchase history. For instance, a Nike commercial might run showcasing the brand’s newest running shoe — complete with a custom URL that takes him directly to a page featuring that pair. As an avid runner training for his first marathon, John follows the link and makes a purchase.
The media buyer responsible for getting that ad in front of John gains insight into viewer engagement, conversions, ROI, and more. They’re also able to attribute John’s purchase directly to the ad and optimize future efforts based on performance.
Let’s zero in on the benefits of CTV advertising:
At the dawn of streaming, users paid for ad-free experiences on platforms like Netflix. But that’s all changed in the past few years. Netflix, Disney+, and Amazon have all introduced ad-funded streaming into their offering — often at a lower monthly rate.
Additionally, FAST services like Pluto TV, Tubi, and Amazon Freevee have forgone monthly subscriptions altogether by relying solely on streaming TV ads to monetize their services.
Across all these models, the takeaway is clear: the future of streaming is ad-supported.
So what’s the source of this big shift? It comes to a number of factors.
There’s also something to say for the improved experience of watching ads on streaming services. Take it from Eric John, VP of the Interactive Advertising Bureau’s Media Center:
When done right, streaming TV delivers pertinent ads that match the needs of individual viewers, creating a more enjoyable commercial break and overall experience.
Due to the growth of ad-funded monetization, the majority of streaming platforms serve advertisements today. The chart below groups some of the top services by category.
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|
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Hulu |
Pluto TV |
Sling TV |
Netflix |
Tubi |
YouTube TV |
Disney + |
The Roku Channel |
fubo TV |
Max |
Xumo Play |
DIRECTV NOW |
Amazon Prime |
Amazon Freevee |
Hulu Live |
Peacock |
Crackle |
Philo |
Paramount Plus |
Vudu |
If you want to drive campaign performance, advertising on streaming TV requires a few more steps than traditional TV. Some of the best practices include:
Obviously, this comes with additional resource requirements. For this reason, many brands and agencies lacking in-house expertise chose to enlist the help of a managed services partner like Strategus to extend their team.
Streaming TV advertising unlocks the potential to precisely target only relevant audiences on the living room television. But running effective campaigns is complex and requires dedicated resources. That’s why Strategus partners with agencies and brands to deliver high-performance CTV campaigns with measurable results.
As the only pure-play CTV managed service partner, we deliver effective campaigns that make the most out of your investment — backed by results you can see in real-time. By partnering with or team of experts, you’ll benefit from:
So what are you waiting for? Find out how Strategus can help you deliver high-performance CTV campaigns with ease. Contact us today.