The streaming media era has brought about numerous positive changes. Advertisers can connect with their audience more efficiently and target specific demographics. This gives them the power to create personalized advertisements with remarkably high conversion rates.
Unlike traditional advertising, which is a costly way to reach a broad audience, streaming allows you to create targeted ads for niche audiences. With the streaming boom radically transforming how advertisers create campaigns, embracing the streaming revolution is now more important than ever.
A Shift in Consumer Behavior Toward Streaming Media
For the first time, traditional TV usage has fallen below 50%. Streaming is now dominating consumer viewing habits.
Studies done by Hub Research LLC, including their Best Bundle Study, indicate that 27% of people intend to add a subscription to their current lineup. More than half of people utilize at least one free-with-ads service, too, with the cost-saving advantages being the main draw for those who already have a lot of streaming packages. In the past, people were content with watching one episode a week, with content being drip-fed onto online platforms to keep users engaged.
That’s now a thing of the past, with on-demand viewing leading to a surge in binge-watching and a sharp rise in original content. Streaming giants such as Netflix are now investing heavily in content production as consumer behavior shifts towards exclusive content.
Shows like House of the Dragon, Bridgerton, and The Boys are prime examples here, as fans often count down the days until the next season is released. As a brand, this can provide you with valuable exposure over consecutive years. Consumers are also willing to sign up for multiple providers if it means they can access new content on demand. Other behavioral changes include the rise of mobile viewing. Smartphones and tablets have made it possible to watch content on the go, forcing streaming providers to adopt mobile-friendly interfaces to support the latest viewing trends.
Targeted Advertising Opportunities with Streaming Media
Streaming platforms cater their content to users to provide a level of personalization. Shows are recommended based on previous viewing habits, and algorithms are used to determine how long someone has viewed a show and whether or not a similar show should be suggested. This provides advertisers with many fresh targeting opportunities. Precision targeting is just one of them. Streaming platforms have access to vast amounts of user data, meaning ads can now be laser-targeted to reach the most relevant audience.
Streaming services also adopt capping tools to stop an ad from being shown too often. Tools like this can be used to provide a positive viewer experience, with sequencing used to create a consistent narrative across multiple exposures. This can be an excellent way to build a story and ensure the viewer is engaged at all times. With the user penetration rate of video streaming services set to reach 20.7% by 2027, there’s never been a better time to start investing in streaming advertisements.
The Power of Data and Analytics
Analyzing data is the key to optimizing advertising strategies on streaming platforms. Advertisers can gain a lot of insight from engagement metrics. Analyzing the network, location and even device of the user helps to identify new opportunities. Data can also be used to deliver the right ad, to the right person and at the right time. Cross-platform opportunities are also significant to explore. Heartland was one of the most-streamed shows of last year, and it streamed on both Peacock and Hulu.
If a subscriber ends the subscription to one platform but keeps the other, this presents a unique opportunity for your brand. You can engage with fans across different platforms while connecting the content, and your brand. This can lead to customer loyalty and improved brand image. Engagement metrics can also be used to determine if people are resonating with your ad, providing more insight than ever into how your customers think and how they respond to your personalized campaigns.
Challenges and Obstacles
Although the streaming revolution is positive, and there are many good things to come from it, it’s not without its challenges.
Fragmentation
As time goes on, audiences are diversifying their behavior. According to Comscore, 75% of viewers now spend more time watching content outside of Disney+, YouTube, Netflix, Hulu, Max and Prime Video. Ad-supported streaming is fragmented in 2024, and it’s currently very challenging for advertisers to track where their ads are running while fairly assessing performance. Increased consolidation is likely to be seen in the future, but for now, it’s an issue.
CTV Performance
The demand for CTV media is high, but many solutions need more clarity. Advertisers simply don’t have access to the metrics they need to track. While this can be a solid advertising channel, you should ask yourself what data you need to optimize your campaign correctly.
Crowded Market
There’s a lot of content out there, and simply appearing on someone’s screen isn’t enough today. Advertisers need to engage people effectively by creating ads that aren’t just shown but also stand out in a crowded market.
Ad Load
Viewers are intolerant of intrusive breaks and prefer short ads. As an advertiser, this can make it challenging to create effective advertisements that don’t garner negative attention.
The Future of Advertising in the Streaming Media Era
Anticipating future trends is the key to staying ahead in the streaming era. Advertisers who want to stay ahead should be aware of upcoming changes to the current landscape.
Personalized Viewing Experiences
A significant advantage of streaming is the ability to personalize your viewing experience. As users grow accustomed to individual recommendations and sophisticated algorithms, this will become more prominent.
Original Content
Streaming platforms have resulted in a boom in original content. Streaming platforms are capable of creating unique stories, and as an advertiser, you need to find ways to make the buzz of new releases work for your campaign.
Cord-Cutting
Streaming has led to a decrease in traditional television. TV networks are having to adapt and stream themselves. Advertisers currently using traditional methods will need to pivot and cater their campaigns to meet the needs of an on-demand-driven market.
Immersive Experiences
Advancements, including AR and VR, offer many opportunities to advertisers. Shows that are available in VR pave the way for VR advertisements. Brands can capitalize on this by not drawing the user out of the experience with a standard ad. Instead, they can embrace virtual reality, using it to immerse the user into the ad’s core message.
Conclusion
Streaming is a massive part of advertising, and with new tech hitting the market, there’s never been a better time to embrace it. Even Netflix is releasing its own ad tech in an attempt to keep up with the market.
By staying ahead of the latest trends and creating targeted ads based on user data, advertisers now have a powerful way to navigate the digital streaming boom while providing consumers with catered ads that have a high conversion rate across multiple platforms.
Looking for a platform to manage your streaming ads inventory? Reach out to a member of our team today.
Originally posted on ADvendio.com on 21st June 2024.
