The Rise of Streaming Video
By: Digital Department, MassMedia Marketing, Advertising, PR
As technology continues to fundamentally change our lives, we are yet again witnessing a new paradigm shift in the way we consume media and entertainment. Just as video killed the radio star and streaming music offed CDs, digital video is slowing taking out traditional TV.
We have seen the television landscape become drastically affected by the surge of streaming video with online video consumption showing absolutely no signs of slowing down. Over the past 5 years, usage of cable TV has decreased by 18%, while digital TV shows an increase of 24%. By the end of 2018, about 77% of all US households had a Connected TV (CTV) device, and roughly 195 million consumers were watching over-the-top video content. This number is anticipated to grow, as over 55 million consumers are expected to cut ties with their cable provider within the next 2 years.
These statistics underscore the importance of advertising through streaming video — especially now. With more people stuck at home and glued to their computer or mobile device, we have seen years’ worth of growth for digital video happen in a matter of weeks. This increase in ad inventory coupled with relatively lower costs presents an opportunity to grab additional market share.
Before you go any further, can you define streaming video a bit?
Sure, streaming video is content delivered through Over-the-Top, or OTT, services. It is video content streamed via an app or website that bypasses traditional distribution models and is delivered over a broadband network that isn’t owned by the video provider itself. It can be viewed live or on-demand, with or without a paid subscription model, on desktop, mobile, and connected TV devices. For example, watching Hulu over a Cox broadband internet connection. Hulu is going “over-the-top” of Cox.
So, what are the benefits of advertising through OTT streaming content?
There are quite a few:
– Great viewability – 100% viewability, to be specific. These ads appear at the beginning, middle or end (right before another program comes on) of a program. Meaning, users are engaged. And the great majority of this content is also considered premium inventory. Additionally, you don’t have to worry about sharing ad space, allowing the user to focus on your ad and your ad only.
– Exclusive viewership – In 2019, 59 million households were not reachable by cable television. That’s a substantial number that you cannot afford to overlook, and as we mentioned, this number will only continue to increase. Through streaming content, you can serve ads to an audience that has severed their relationship with cable and an audience that never had a relationship with cable to begin with.
– Better performance – Ads are non-skippable and are also shorter, so you’ll see a more engaged audience with significantly higher completed view rates.
– Advanced targeting – OTT offers specific targeting parameters which will help you better reach your audience and minimize wasted impressions. Unlike traditional advertising, you’re not limited to the broad targeting categories of a network or program. Rather you’re able to directly reach your desired audience on a more granular level.
Can you talk a little more about advanced targeting?
Connected TV offers the targeting of digital advertising, with the experience of linear television. 90% of Connected TV viewers say the advertising they watch through CTV is more relevant than ads found on traditional television, and that is certainly due to the more precise targeting capabilities outlined below:
– Demographic targeting
– Behavioral targeting
– Contextual targeting
– Device targeting
You can also overlay multiple targeting segments to be as defined as possible. However, keep in mind the more you layer on, the less inventory will be available.
DIY doesn’t work for digital marketing, particularly streaming video. Advertising through OTT platforms requires strategic planning and a trusted partner that fully understands the platforms. Engage the digital experts at MassMedia to maximize your marketing spend with greater reach and frequency to drive more qualified leads. Click here to connect with MassMedia today.