Why Advertising on Streaming TV Platforms Is a Smart Choice.
Updated: Jan 5
Streaming video platforms or, Connected TV (CTV), is taking the media world by storm. Don't miss out on this inexpensive way to reach targeted audiences.
In the olden days (About 10 years ago) if you wanted someone to learn about your business you called up the local cable company or broadcast station and asked about placing a commercial in "American Idol" or on the Hallmark Channel or other like network. You would send a copy of your commercial and you'd watch for it to appear on TV and then brace for customers to knock down your door. Simple? right?
Well, the media landscape and video advertising in particular has undergone an amazing transformation into the streaming world. Cable video subscriptions and broadcast TV ratings have fallen off a cliff during this time. Does that mean that we're watching less video content? You know that answer to that question. Of course not.
As of second quarter of 2020, streaming now accounts for a quarter of all television minutes viewed, according to Nielsen's latest Total Audience Report. That's a significant leap from streaming's 19% share of TV minutes in last year's fourth quarter.
And Digital advertising has kept pace:
"Online advertising dwarfs TV advertising in terms of spend – and the gap is getting larger each year. Updated estimates for 2018’s online advertising spend puts it at $107.5 billion, a figure more than $36 billion higher than the spend on television ($71.0 billion). In 2019, PwC forecasts that online advertising will reach $123.1 billion – making that spend more than $50 billion higher than TV, which remains largely flat.
So why should you care?
1. Traditional broadcast and cable TV advertising impact then it did a few years ago. Less viewers means less messaging for your ad.
2. Connected TV allows you to target specific audiences by demographics and interests (No more 65 year old women seeing your ads for your skateboard shop on the Lifetime Movie Network)
3. Less expensive. Video streaming ads average from $20-$30 per 1000 ads. That's just pennies per ad. One ad in a primetime show can be over $300 or more depending on market size
Digital video and connected can be a great way to raise awareness for your business. More and more viewers are watching, You can create targeted audiences and get more bang for your buck. It’s not a matter of if, but when, CTV ads will become the preferred method of advertising over traditional TV.
Contact us to get a jumpstart on your connected TV strategy today.