Streaming TV Climbs To New Heights. What Does This Mean For Advertisers?

Businesses are well aware of the ever-growing popularity of streaming TV and the opportunities it presents to reach consumers, but what are true benefits of streaming TV advertising, and what does it mean for advertisers? Let’s explore this question as well as outline some of the key differences between streaming TV (OTT) and traditional TV (CTV) advertising. This will allow you to make more informed decisions when choosing which medium to use when marketing your products or services, increasing your chances of success.

Traditional TV advertising has long dominated the advertising industry and has been an effective go-to tool for businesses. But, with the rise of streaming TV shows and movies through services like Netflix, Hulu, Prime Video, and HBO Max, it seems that the tide may be turning against traditional television ads. Streaming TV has become so prevalent in American culture that roughly 85% of American households subscribe to some sort of streaming service. This has big implications for advertisers, who are now turning to streaming TV to reach their audiences.

In the past, traditional television viewers could quickly switch stations during commercials. This made it difficult for advertisers to effectively reach their target audience. However, streaming services have changed the game by offering viewers a more personalized experience with precision targeting. Streaming allows advertisers to target based on a wide range of data-driven variables such as interests and demographics using programmatic advertising. With streaming sites, viewers are also more likely to watch ads because they can’t change the channel. This makes streaming an attractive option for advertisers.

In terms of Return On Ad Spend (ROAS), streaming TV rates are set at Cost Per Thousand (CPM) which means they pay for the exact number of views or impressions that their ad gets. In contrast, traditional TV rates use projections and ratings which means it doesn’t matter how many people watch your ad; you will still be charged for those viewers even if it was only one person who saw it.

As the popularity of streaming services increase, so is the amount of advertising on these platforms. And as more advertisers flock to streaming TV, the cost per thousand views (CPM) will decrease, which means they can reach more people for less money.