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 2025.

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: these are Smart TVs or TVs that are connected to the internet via a gaming console, puck, stick or dongle (Xbox, Apple TV, Amazon’s Firestick, Roku and others).
• Small Screens: these are all other devices (mobile, tablet and desktop) where a user is watching TV programming.
  • Smart TV: an internet-enabled TV connects direct to services & apps 
  • Puck, stick or dongle: examples include Apple TV, Amazon’s Fire Stick, Chromecast & Roku devices
  • Gaming consoles including PlayStation, Xbox & others 
  • Laptop, tablets & mobile devices connected directly to programming or streaming sites

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 2024, 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 EMARKETER, 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.

Addressable Streaming TV

Addressable Streaming TV is the latest option you can add to your marketing strategy. Addressable Streaming TV combines brand awareness of large screen devices with micro-targeting.

Benefits of Addressable Streaming TV

• Efficient Targeting: Target consumers based on where they have been, their demographics/interests, and even custom residential addresses. 

• Brand Awareness: Proven to have a long-lasting impression with customers/viewers.

• Cross-device attribution: Target your consumers across large screen devices from smart TVs to streaming devices to gaming consoles. 

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.

According to a Nielsen report, in the first quarter of 2024, Americans spent over 20 hours a week with linear TV and 14 hours with CTV. 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.