In the dynamic world of digital marketing, understanding and utilizing streaming TV advertising has become crucial for businesses of all sizes.

Streaming TV, also known as Connected TV (CTV) or Over-The-Top (OTT) TV, offers the impact of traditional television with the precision of digital marketing tools.

Let’s delve into how streaming TV advertising can be a game-changer for your marketing strategy in 2024.

What is Streaming TV Advertising?

Streaming TV allows users to view live or on-demand programming across various devices, creating new advertising opportunities.

It spans across:

• Large Screens: Smart or internet-connected TVs through devices like gaming consoles, Apple TV, Amazon Firestick, Roku, etc.
• Small Screens: Mobile devices, tablets, and desktops accessing TV programming.

The Evolution of Streaming Devices

Since 2020, there has been a significant shift in how consumers use streaming devices.

Smart TVs and devices like Roku continue to dominate, but the landscape is ever-evolving, with newer technologies and platforms emerging.

Benefits of Streaming TV Advertising

• Robust Targeting: Advanced targeting capabilities based on viewer demographics and interests.
• Data-Driven Decision Making: Real-time data for optimizing advertising strategies.
• Control Over Ad Experience: Tailored ad experiences for different devices and platforms.
• Cross-Device Attribution: Seamless integration across various devices for cohesive marketing efforts.
• Brand-Safe Environment: Ensures ads appear in a contextually appropriate setting.
• Impactful Insights: Detailed reporting and analytics to better understand ad performance.

Streaming TV vs. Traditional TV Advertising

• Ad Break Structure: Streaming TV often has fewer ad breaks with less clutter, enhancing brand recall.
• Completion Rates: Ads on large screens often see over 90% completion rates.
• Ad Recall Impact: Research indicates that adding a single streaming TV ad can boost ad recall significantly, more so than traditional TV spots.

The Growing Streaming TV Audience

In 2023, the audience demographics for streaming TV continue to evolve, with significant viewership across various age groups, including older demographics that were traditionally less engaged with streaming content.

According to a 2023 survey on Insider Intelligence, Gen Z adults stream video, 46 percent, and stream music, 43 percent, each day. The survey also found that adults in that same age group are less likely to consume more traditional media like linear TV and AM/FM radio when compared to older generations.

Around nine in 10 Gen Z adults are also multiscreeners, which means they simultaneously consume TV and internet content on multiple devices.

The Shift in Advertising Spend

• Advertiser Trends: A substantial portion of advertisers are reallocating funds from linear TV to streaming TV, focusing on its targeting efficiency and extended reach.
• Industry Growth: The investment in streaming TV advertising has continuously grown, outpacing traditional TV spend in certain areas.

Streaming TV Advertising CPM and Platforms

• Advertising Video CPM: The cost-per-thousand (CPM) impressions in streaming TV can vary, offering competitive rates compared to traditional TV.
• Advertise on YouTube and Hulu: Platforms like YouTube TV and Hulu are popular choices for streaming TV ads, offering diverse audience reach and flexible ad formats.

Pre-Roll Video

Pre-roll video is an excellent option for your marketing strategy.

Pre-roll video plays your 15-second, 30-second, or long-form video within other video content online at scale. It is a robust tool for precise targeting and can increase brand recall and purchase intent.

Benefits of Pre-Roll Video

• Behavioral Targeting: Target consumers based on their behavior and track their interests online.
• Demographic Targeting: Target a specific age, income, and/or gender when reaching your consumers.
• Frequency Targeting: Control frequency, limiting or increasing the number of times your ad is viewed.
• Day Parting: Control when a user can see your sale message.
• Geographic Targeting: Target a user based on their location, available by zip code, city, state, country, and radius. Custom geo fencing is also available.

Increase Your Reach and Results

Almost twice as many streaming and cable/satellite viewers between the ages of 18 and 54 claim to pay more attention to commercials on streaming, 43 percent, versus cable/satellite at 23 percent.

Sixty-four percent of people in the U.S. own a connected TV device, and half of the U.S. Wi-Fi households now stream content directly to their  TV an average of 1 hour and 40 minutes daily, according to ComScore.

In the first month of 2022, streaming averaged more than 180 billion minutes per week, delivering a record 28.9 percent of total television usage, according to Nielsen. Forty percent of TV viewers have actually paused content to learn more or make a purchase.

Given the statistics above, it’s important to note that just one streaming ad to a traditional TV campaign can boost ad recall by 34 percent.

Future Outlook

As we look ahead, the trajectory for streaming TV advertising is one of growth and innovation.

This medium is poised to become an integral part of digital media strategies for businesses seeking to maximize their reach and impact.

For more information on incorporating streaming TV into your digital media strategy, reach out to our team of experts. We’re here to help you navigate this exciting and ever-changing landscape.