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Streaming TV advertising is a relatively new innovation, yet it has made a significant impact. Partially or fully transition away from traditional TV commercials to streaming TV advertising and you’ll likely find it is superior in several ways. Below, we answer the question of “What is CTV advertising?”, providing an in-depth look at the merits of streaming TV advertising.

Breaking Down Streaming TV Ads

Streaming ads aired on TV are presented in online content viewed through web-connected devices. Such ads are displayed prior to or during content streamed directly into homes. Ad-supported web channels are rapidly growing in popularity, rivaling the likes of Netflix and Hulu.

Consumers now have a litany of channels to select from, meaning they are more than happy to sit through advertisements for either premium, moderately priced, or free content. As detailed below, this trend is likely to continue.

Streaming TV Ads Are the Future of Marketing

Consumers are gradually transitioning away from the “cord” of cable to streaming video delivered by the internet. The beauty of streaming TV ads is that they narrowly target members of a specific viewing audience. Moreover, advertisers who use streaming TV as a conduit have that much more control over the air times of their ads. In contrast, conventional commercials aired on regular TV are presented on specific channels at exact times.

Take the streaming TV advertising route, and you’ll be empowered to deliver your advertisements to a narrow group of people rather than an entire viewing audience. Focusing on a comparably small audience through streaming TV ads generates elevated ROIs, meaning a return on advertising investment. This is precisely why more businesses and advertisers are transitioning away from the linear ads of yesteryear to more modern streaming ads.

Streaming Platforms for Ads

Online video ads through streaming services are presented to viewing audiences on a wide array of platforms. As an example, some of the most popular streaming TV ad platforms for marketers include Apple TV, Amazon’s Fire TV, and Roku.

Oftentimes, the word “platform” is also used to refer to channels on such devices, be it Disney+, Netflix, etc. Such channels are available on the devices referenced above similar to how apps are available on smartphones. The most popular streaming services that support ads, typically with tiers, include the likes of Sling, Peacock, and Hulu.

The Strategic Placement of Streaming TV Ads

Streaming TV ads are displayed in a highly strategic manner. However, the presentation of ads is determined by the channel type. Video on demand that is supported by advertising is highlighted by channels with ad breaks. These breaks air in video-streamed content for no-cost entertainment content.

Reach and Engage the Target Audience 

Advertising on TV empowers businesses to connect with target demographics, including those who live in specific geographic areas, to guarantee the optimal audience sees the message. Ad-supported streaming services are mutually beneficial to advertisers and viewers as ads are presented between content breaks, are less disruptive to the viewing experience, and benefit the advertiser through exposure.

The numbers show more people watch TV than read magazines, newspapers, and other forms of print. Those who consume streaming video content have the potential to shift their gaze to their smartphone yet they cannot simply flip the page as is possible with magazines, newspapers, etc. Even if the consumer does not watch the ad in its entirety, he or she will hear the message.

The Perfect Opportunity for Smaller Brands

Streaming TV ads are the optimal opportunity for underdog brands to build bridges to a more expansive audience, potentially through a single ad. There is also the ability to narrowly target audiences through local TV ads, helping those smaller brands gain market share from more established businesses.

Some business owners are hesitant to take the streaming TV advertising plunge simply because there is a misperception that viewers will not want to watch ads during streams. However, a survey conducted by Deloitte shows that nearly two-thirds of respondents were content to watch ads to decrease or fully eliminate viewing costs.

Change With the Times to Remain Competitive

If you are still unsure whether it is in your business’s interest to advertise on streaming TV services, take a moment to attempt to prophesize the future. Nielsen reports streaming video content raked in more viewers than traditional broadcast and cable TV this past year for the first time in history. This trend is likely to continue as consumers continue to cut the cord on expensive cable in favor of more affordable streaming services.