What is Streaming TV Advertising?
For many years now, people have moved away from linear TV, such as the broadcast networks and cable TV. They now watch TV and movie content on streaming services more than ever before, including Netflix, Hulu, Disney+, and Amazon Prime Video. While streaming services initially touted their lack of advertising, all major streaming services now feature ad-supported tiers, or are completely ad-supported.
This has created a huge opportunity for small to medium sized businesses (SMBs). You now have the ability to advertise your brand with compelling and entertaining ads, while targeting specific audiences, all at an affordable price.
What is Streaming TV?
Streaming TV refers to watching television shows, movies, and videos through the internet, rather than through broadcast television, cable, or satellite. Popular platforms include Netflix, Hulu, Amazon Prime Video, Disney+, Tubi, Pluto, and a growing list of others.
Viewers now prefer on-demand viewing, so they can watch content when it’s convenient for them. This shift has led to the creation of an entirely new form of advertising—streaming TV advertising.
Is Streaming TV the same as Over The Top (OTT) and Connected Television (CTV) advertising?
Streaming TV, Over-the-Top (OTT), and Connected Television (CTV) advertising are closely related, but they have distinct differences.
Streaming TV advertising refers broadly to delivering ads on platforms that stream video content over the internet, such as Netflix, Hulu, or Peacock. It encompasses both OTT and CTV as methods of reaching audiences.
OTT advertising specifically involves ads served on streaming platforms accessible via devices like smartphones, tablets, and streaming boxes (e.g., Roku or Apple TV). It’s a broader category, covering any internet-enabled device capable of accessing streamed content.
CTV advertising, on the other hand, targets ads on smart TVs or TVs connected to the internet through external devices like Roku, Apple TV, Amazon Fire Stick, and Chromecast. It’s a subset of OTT, focusing purely on actual television screens.
What Is Streaming TV Advertising and How Does It Work?
Streaming TV advertising allows you to place commercials on streaming platforms. Your ads play during commercial breaks in TV shows and movies, much like traditional TV ads have done for decades.
However, streaming ads are more targeted and can be much more affordable, especially for small businesses.
There are several types of ads on streaming TV:
- Pre-roll ads: These ads appear before the content you want to watch starts.
- Mid-roll ads: These ads are inserted into the content at natural breaks.
- Post-roll ads: These appear after the content has ended.
- Display ads: These can show up as banners or overlays during the video.
This form of advertising allows for a more personalized experience because advertisers can target specific audience segments based on interests, demographics, and viewing habits.
Why SMBs Should Consider Streaming TV Advertising
Audience Reach and Targeting Potential
One of the main benefits of streaming TV advertising is the ability to reach a targeted audience. Traditional TV ads often cast a broad net, hoping to catch as many viewers as possible, but they don’t have the same level of targeting capabilities. With streaming TV, you can target specific groups based on factors like:
- Age
- Gender
- Interests
- Location
- Past viewing behavior
For SMBs, this is a huge advantage. You no longer have to overspend on traditional advertising methods, essentially wasting a large portion of your budget. With streaming TV advertising, you can reach the right audience so your marketing budget goes further.
Cost-Effectiveness Compared to Traditional TV
Traditional TV advertising can be incredibly expensive. Buying ad space on major networks or prime-time programming is often out of reach for SMBs. The beauty of streaming TV advertising is that it’s more affordable and offers better ROI.
Because streaming platforms often charge on a cost-per-thousand impressions (CPM) or cost-per-click (CPC) basis, you’re only paying for the views or actions that matter most. This makes it easier to test your ads, track performance, and adjust your strategy as needed. You’re not just throwing money at something and hoping it works. You have the power to track your ad performance in real-time and optimize your campaigns accordingly.
Key Benefits of Streaming TV Advertising for SMBs
Enhanced Targeting and Personalization
As mentioned earlier, one of the standout features of streaming TV advertising is the ability to target specific audience segments. Platforms like Roku, Hulu, and YouTube provide advertisers with data on viewers’ behavior, allowing for hyper-targeted campaigns. This means you can reach people who are most likely to be interested in your product or service, ensuring your ads are not wasted on irrelevant audiences.
Furthermore, with the ability to personalize your messaging based on demographic information, interests, or past actions, your ads will feel more relevant.
Real-Time Feedback and Optimization
Another great benefit of streaming TV advertising is the ability to receive real-time data on your campaign’s performance. Traditional TV advertising often doesn’t allow advertisers to track immediate results, but with streaming TV, you can monitor key metrics such as views, clicks, and conversions as they happen. This gives you the ability to quickly adjust and optimize your campaigns, which is especially helpful for SMBs trying to maximize their budgets.
Increased Brand Visibility
Running ads on streaming platforms can significantly increase your brand’s visibility. With millions of users watching content on platforms like Hulu, Roku, and YouTube, there’s a large audience for your brand to tap into. Plus, with better targeting and more affordable pricing, SMBs can make a real impact without the need for a massive budget.
Multi-Device Access
Streaming TV isn’t limited to just one device. Viewers watch their favorite shows on mobile phones, tablets, smart TVs, and desktop computers. As a result, your ads have the potential to reach consumers wherever they’re engaging with content. This cross-platform visibility is a great way for SMBs to stay top-of-mind with customers on their preferred devices.
How to Get Started with Streaming TV Advertising
1. Choose the Right Streaming Platforms
The first step in getting started with streaming TV advertising is choosing the right platforms. Popular options for small businesses include:
- Netflix
- Disney+
- Hulu: Known for its wide range of content and dedicated audience, Hulu TV advertising provides effective targeting options for SMBs.
- YouTube TV: A massive platform with great targeting and video advertising options.
- Roku: With a vast user base and targeting capabilities, Roku is one of the leading platforms for advertising.
Each platform offers different features, so it’s important to assess where your target audience spends the most time and choose accordingly.
2. Set Up Your Campaign
Once you’ve chosen your platform, it’s time to set up your campaign. This involves defining your goals, creating your ad content, and deciding on your budget.
Remember, small businesses often have limited budgets, so make sure you’re setting realistic goals and focusing on the most important metrics (such as conversions or website traffic).
3. Track Performance
The great thing about streaming TV advertising is the ability to track performance in real-time. Make sure you’re constantly analyzing your data to understand what’s working and what isn’t. If certain ads or targeting options aren’t performing as expected, don’t hesitate to tweak your approach.
Tips for Effective Streaming TV Advertising Campaigns
1. Craft Compelling, High-Quality Video Content
The quality of your video content is key to your campaign’s success. Make sure your ads are visually appealing, well-edited, and deliver a clear message. Remember, you’re competing for attention on a platform with lots of other content, so make your ad stand out.
2. Focus on Short, Impactful Messaging
People don’t want to sit through long, drawn-out ads. Focus on delivering your key message in a concise and engaging way. Short, attention-grabbing content often works best on streaming platforms.
3. Test Different Ad Formats and Placements
Experiment with different types of ads (pre-roll, mid-roll, post-roll) and placements to find what works best for your audience. A/B testing can help you optimize for the best performance.
4. Leverage Retargeting
Retargeting is a powerful tool for SMBs. If a viewer has engaged with your brand—such as visiting your website—but didn’t make a purchase, you can show them an ad to remind them about your product or service.
Contact COLAB to Advertise Your Business on Streaming TV
Streaming TV advertising creates a big opportunity for SMBs to reach a large, engaged audience without spending a ton of money. With its targeting capabilities, real-time feedback, and cost-effective pricing, it’s a great way for small businesses to increase brand visibility, drive conversions, and compete with larger companies in the digital space.
If you need a TV commercial for your streaming TV campaign, or want to advertise on streaming TV, contact COLAB today.