Digital and online advertising has grown tremendously in recent times. More specifically, it has branched out into different territories including display networks, blogs, and local spot advertising as well. However, perhaps the most interesting avenue it has branched into recently can be seen within online streaming tv services. With streaming services proving to be the main alternative to traditional television and movies, it comes as no surprise to see the ways advertising can be implemented on them. Nonetheless, this strategy looks like it will be around for a long time given the large audience of potential clients that these streaming services pull in regularly. That said, before jumping into some tips on how to implement this type of advertising effectively, let’s break down advertising on online streaming services in a more manageable approach.
What are Streaming TV Services?
As for what online tv streaming services are exactly, they are a form of multimedia that is presented to the viewer through an established provider. For the most part, these streaming providers present their services constantly to keep up with viewer demands. What makes them a popular alternative to other forms of multimedia is that they are diverse in their streaming services. Most platforms provide a variety of services including movie options, television shows, and even live local television and sports. When combining all of these features into one package, they are usually cheaper than other forms of paid multimedia services which further makes them a viable option to audiences. As much as they offer now, these platforms are continuing to add new forms of media and services every year.
The top streaming tv platforms include:
- Amazon Prime Video
- PlayStation Vue
- YouTube TV
- HBO Now and HBO Go
- Sling TV
- iTunes / Google Play Store
Benefits of Streaming TV Services
Perhaps the main benefit of these streaming platforms is that they have access to extremely large audiences. They can be used for virtually anything including marketing and specific advertising as well. As we can see, this is where the power of advertising on these services comes into play. Even better, these streaming services have access to accurate and specific viewer data that can be used to target potential clients more directly. In the grand span of things, this benefits advertising campaigns in the form of high conversion rates.
As if that wasn’t enough, another major benefit of streaming tv services is that they can be used across different devices. This allows for the creation of specific cross-device advertising for even more targeted ads.
How To Create A Great Ad For Streaming TV Services
There are several steps involved to create a great ad for streaming television services. To begin with, understanding your audience is essential for knowing what type of ad to serve. Speaking of which, the ad type would be the next step after knowing your target audience. Specifically, most streaming television services allow for short 30 second commercial ads at most. This means that your ads will need to be information and call-to-action heavy in structure. There is also the option to create custom videos that can be played according to pre-determined filters and settings.
Apart from ads that can be played during a stream, another way to create a great ad is by putting it ahead of the stream in what is known as premium slate advertising. This method has proven to be just as effective as interruption advertising on streaming platforms.
How Much Does It Cost To Advertise On Streaming TV Services
Now that we understand the structure of streaming services and how ads can be implemented, the next important step to understand is how much it costs to do so. However, what’s interesting about this topic is that there is no specific range of how much it costs to advertise on these platforms. Different guidelines and regulations of each platform can change the range of advertising anywhere from $30 to thousands of dollars per ad. What’s more important than knowing how much to pay is knowing the size of your advertising budget. Quite obviously, the bigger your advertising budget is, the bigger the amount and size of ads you can spend on.
Stats About Streaming TV Services
Understanding streaming television services by the numbers is just as important as anything else. Having said that, one interesting stat about these services can be seen in the amount of awareness these types of ads can generate. Generally speaking, streaming television services ads generate upwards of 50% awareness on a specific product or sale. This helps increases purchase intent at extremely high rates. Apart from that, another interesting stat can be seen in how much money platforms are willing to spend on their advertising. Per platform, advertising costs have shown to be well over the 100 million dollar mark. This is essentially a limitless budget size that can be used in any way, shape, or form. By now, we should have a full understanding of what streaming television services ads is, how it works, and why it is effective. With this in mind, let’s get into ten tips on how to do it effectively.
- Paid cable subscriptions declined 3.4% year-over-year.
- The global video streaming market is estimated to be worth over $125 billion USD by 2025. (MarketWatch)
- US consumers now spend nearly as much time watching videos as they do working. The average consumer spends 40 hours per week watching video content, with 15 hours per week of that through video streaming services. (Deloitte)
- Netflix had its best year yet in 2018, with annual revenue of $15.794 billion, or 35 percent year-over-year increase, and making it the highest earner among the top streaming services. Hulu and Amazon Prime Video (Channels only), by comparison, earned less than $3 billion each. (Macrotrends)
- 70 percent of consumers believe traditional TV does not offer a good quality of content for the price, reflecting a growing value gap versus cord-cutting options and skinny bundle services like Sling TV, et. al., and adding insight into why many are choosing online streaming options instead. (Deloitte)
- YouTube is the largest video streaming site in the world with over 1 billion users worldwide. (YouTube)
- 1 out of 3 Americans does not have cable.
- Thirty second video ads on Hulu generate a 61% increase in top-of-mind awareness and a 22% increase in purchase intent versus “linear TV” ads.
- Slates, or branded title cards that appear at the beginning of a show, are 106% better at building top-of-mind awareness than linear TV and 31% better at developing purchase intent.
- 130+ video streaming services exist on the market.
- 25% of sports content is viewed online.
- 73% of U.S. consumers binge-watch.
- Video skins are also 106% better than linear TV at building top-of-mind awareness and 27% better at developing purchase intent.
- Hulu’s Branded Entertainment Selector (BES) allows users to choose between one long commercial at the beginning of the show or interruptions throughout the show. According to Hulu, BES is 189% better than linear TV at developing top-of-mind awareness.
- Hulu’s Ad Selector, a feature that allows viewers to choose their own ads, is 150% better than linear TV at developing unaided recall and 24% better at generating purchase intent.
10 Tips For Advertising On Streaming TV Services
#1: Knowing The Streaming Audience
Having mentioned the importance of understanding the audience before, it’s so important that it deserves another look. More than anything, there is an important distinction to make with this tip. This distinction stems from knowing the difference between the audience of your ad and the audience of the viewer. These are most often two different types of audiences that can range in age, gender, and everything else in between. As far as what audience is more important, that will come down to factors such as ad type and niche. Nonetheless, simply knowing this distinction will go a long way in helping you serve a more relevant streaming television services ad.
#2: Mixing Up Your Ad Types
Another important tip when it comes to serving streaming television ads is to mix them up. This serves a variety of purposes including finding the best ad type for your niche, finding the right ad structure, and other similar benefits. Overall, this tip also helps in getting the most out of your ad budget. Especially in the case of lower budget sizes, you are going to want to be more diverse as a way to create a well-rounded advertising campaign. Worth mentioning, there is no specific ad type that you should use the most. Finding the right ad for your niche will come down to testing it on the online streaming television platform.
#3: Advertise On Multiple Platforms
Another way to get the most out of your overall advertising budget is to advertise on multiple platforms. This is another benefit that streaming television services have, there seems to be an endless amount of them. What’s best about this tip is that it allows the advertiser to choose which platform best fits their product or service. For example, if you want to advertise a sports product, you can advertise on a platform that streams sports television services. It’s a win-win situation for all parties involved.
#4: A/B Split Test Different Ads
No matter what type of online advertising you want to do, A/B split testing is one of if not the most important way to serve a good ad. This rule applies more so to online streaming television services ads as they are shorter in length. As far as what this strategy is exactly, it boils down to testing at least two different ads with small variations to copy and structure to see which one outperforms the other. Once enough data is collected, the idea is to continue to serve ads to try to outperform the best one. This results in a never-ending cycle of good performing ads.
#5: Include A Clear And Concise Call-To-Action
Within the ad structure itself, one must-have factor is a call-to-action. To be more specific, call-to-action options have to be more clear and concise with online streaming television ads due to its shorter structure. That said, what a clear call-to-action allows you to do is give direction within your ad. Without one, that would be over-serving irrelevant ads that can be detrimental to an ad budget. In extreme cases, not having one can take away from the legitimacy of your ad and product. In the long run, that is far more detrimental than anything else.
#6: Be Consistent With Proven Ads
After you have found a proven ad through strategies such as A/B split testing, another proven tip is to be consistent with serving it. At the very least, continue to serve a proven ad until you have either spent the ad budget for it or have enough data to create another ad to outperform it. Like other tips mentioned, this tip also serves the purpose of getting the most out of your ad budget. This includes eliminating issues such as overserving irrelevant ads, poor ad structure, and other similar disadvantages that may be found within your ad. If you have proven that you need to change things up with your ad, make sure the changes aren’t too drastic as to not take away from the ads overall performance.
#7: Implement Remarketing Campaigns With Your Ads
With online streaming television services ads, remarketing is one of the most overlooked strategies. In a nutshell, a remarketing campaign is a way to show ads to an audience or specific client that saw your ad without taking any action. The reason it is not used as much with online streaming television services ads mostly stems from the fact that it’s a little more technical to implement than on other online strategies such as pay-per-click. That said, this shouldn’t prevent you from completely ignoring it within your ad campaign. The benefits of implementing it include improving conversion rates, securing missed qualified leads, and overall adding to your net revenue from your ad spend.
#8: Connect Your Ads With Other Marketing Channels
Connecting your ads with other marketing channels serves the purpose of reaching your audience effectively. It does so by allowing a more consistent messaging process that is found within your ad. Studies show that an ad is most effective in converting after it has been seen by a potential client at least seven to eight times. In the grand span of things, we can see how important this is in helping you avoid overserving bad ads. Specifically, it helps avoid wasting your ad spend sooner than expected. Overall, integrating more than one marketing channel will provide better results than a single channel as far as ad spend is concerned.
#9: Set Budget Allocation Limits To Your Ads
As we know by now, serving great ads is largely due to having enough budget to work with. This allows for more freedom of creativity to make your ads more unique. This is where setting budget allocating limits is most effective. Especially if you want to leave your ads running on autopilot, setting these limits will ensure that you never overserve an ad. Also, it helps keep your ad campaign balanced so not a single dime is spent outside of the needs and requirements of your ads. As far as how to do this exactly, whatever platform you are using to serve your ads in should have a filters tab within its setting where this can be done.
#10: Understand The Buying Intent Of Your Audience
Last but not least, serving great online streaming television services ads comes with understanding the buying intent of your audience. This is different than knowing the general specifics of your audience as it provides a detailed analysis of how and when you can serve your ad. This information can be found within any data analysis tool you are using along with your ads. Nonetheless, understanding this will increases the chances that you not only convert from your ad but that you profit from them.
Thanks for reading "The Ultimate Guide For Advertising On TV Video Streaming Services", by the Linchpin Team in Chicago, Raleigh, and Wake Forest.