The Rise of Streaming Services: What Your Business Needs to Know
Streaming services have been on the rise for a few years, but when the pandemic hit, streaming platforms surged across the country. In fact, according to market research, the average person has log-ins to four streaming services, with 38% having access to five or more services.
As streaming services have increased, so has the demand for streaming advertising. Streaming ad-buys are generally a lot more affordable and are certainly more targeted in their approach than traditional radio and TV ads, making it an excellent ad-buy option for more and more advertisers.
When you advertise on streaming platforms, you can precisely reach your target audience based on factors like age, gender, zip code, interests, language, and more. Unlike broadcast ads that reach entire markets, streaming ads allow you to serve relevant ads to your specific audience. Another great benefit for advertisers who want to make sure people are actually watching or listening to their commercial is most ads are non-skippable. In addition, ads are usually only 15-30 seconds long and are limited to 2 or 3 ads playing back to back, so the messages don’t become an annoyance to the audience.
Advertisers also benefit from much more detailed reporting and analytics compared to traditional broadcast advertising. Streaming ads allow for direct interaction with your audience with options like swipe to visit our website and click for details. This data and a host of other info can then be measured to show ad engagement, total impressions, unique impressions, purchases, and so on.
So what exactly is Streaming TV? It's often called video on demand, online/internet TV, or digital TV, and it's available in a variety of formats. Two main formats include Connected TV and Over The Top, and in the advertising world, these are referred to as CTV and OTT respectively.
CTV includes devices that connect to a TV to support streaming services such as Xbox, PlayStation, Roku, Amazon Fire TV, Apple TV, and more. OTT is delivered directly from the internet and can be accessed from a phone, tablet, computer, smart TV etc. OTT services include Netflix, Hulu, Amazon Prime, and Disney Plus to name a few. The main benefit of these services over cable TV is providing users with video content on-demand - what they want, when they want it, and access wherever they go.
Now that we've explained what streaming TV is, we'll break down streaming radio for you. Streaming radio, also called internet radio, digital radio, and web radio, is essentially digital audio transmitted through the internet. Digital audio has become so convenient, 2/3 of American's are tuning in to listen to their favorite music or podcast with the majority of users tuning in directly from a mobile app.
Streaming apps like Pandora, iHeartMusic, Apple Music, and Spotify offer ad-supported options that together exceed well over 100 billion ad minutes per month according to Marketing Charts. Their research also concludes free, ad-supporting listening accounts that make up 77% of the streaming radio accounts. Which means, even though many users have opted for paid subscriptions to avoid listening to ads, there are still plenty of opportunities to reach potential customers, making advertising through streaming radio services highly beneficial for businesses.
With TV and radio streaming services becoming increasingly more popular and with over 130 streaming services available to choose from, there are so many advertising opportunities for businesses to benefit from.
Whether you're considering advertising on streaming TV or radio, your business can really level up from either option, as streaming allows you to precisely target your potential customers and is a fraction of the cost compared to traditional broadcast advertising. Not that we recommend you abandoning those classic channels of advertising, as they are still a powerful way to reach consumers, simply embrace this new way of advertising as well.
Is your business interested in streaming advertising services to grow your brand? Contact us at the link below. We can answer all of your advertising questions and assist you with campaign development, media buys, placement, frequency strategy, rate negotiations, and more.