Digital advertising has taken the marketing industry by storm, and it continues to top the charts, creating newer advert opportunities for businesses worldwide. Global digital ad spending is expected to reach $389 billion in 2021 (Statista Research Department).
Among the many forms of digital advertising, streaming services are gaining businesses’ attention due to the exceptional advertising opportunities it has to offer. This article will go over the basics of streaming services and the potential these platforms carry in immersive marketing.
How are Streaming Services Growing Popular in the Eyes of Advertisers?
Streaming platforms are opening many doors for advertisers, arising as a new form of digital media. Streaming services call for live and on-demand segments that cater to enhancing a user’s personal experience. The global video streaming market is accelerating exceptionally well and is expected to grow at a CAGR of 20.4% from 2020-2027.
Businesses are now moving from traditional marketing strategies and are adopting effective advertising tactics by taking advantage of ad-supported streaming services. There are some notable names in the streaming industry catering to a large userbase. A survey held in May 2020 had shown 62% of adults in the US had stated they or someone in their household was a current subscriber of a streaming service. These stats add to why it may be a good idea to switch to ad-support streaming for marketing your brand.
Guide to: Popular Streaming Services to Look Out for in 2021
- Netflix- the best streaming service in the world. |Starting Price $9/monthly| Netflix Standard $13.99/monthly | Offers ad-free streaming
- HBO Max- the ideal prestige TV solution | HBO Now 14.99/monthly |Offers ad-free streaming
- Disney+ -a family-friendly streaming service | Disney+ monthly 6.99| Disney+ yearly $69.99 | Offers ad-free streaming
- Hulu- the perfect streaming service for cord-cutters | Hulu $5.99/monthly | Hulu (no ads) $11.00/monthly | Offers ad-supported streaming
- Amazon Prime Video- a streaming service with a wide collection similar to Netflix | Amazon Prime Video $12.99/monthly |Offers ad-supported streaming with Amazon OTT video ads.
- Apple TV+ – an emerging streaming service |Apple TV+ $5/monthly |Offers ad-free streaming
Free ad-supported streaming has increased since the emergence of the global pandemic. In addition to subscription models, Sony, Crackle, Tubi TV, Pluto TV, Sling TV, Xumo, and STIRR are some of the many paid or free streaming services that offer ad-support to showcase your brand to millions worldwide. Brands have the chance to use geotargeting to maximize their reach when choosing to advertise on streaming services.
What advertising options do these streaming services offer?
Unlike traditional television, streaming platforms possess more user information (including user-preferences), allowing advertisers to leverage buyer info to their advantage. This helps businesses reach out to their target market effectively using different advertisement options available over streaming platforms.
With more buyer persona available, advertisers will be able to use various advertisement methods based on their target audience to make a worthy appeal.
Trends in Streaming Service Advertisements
The United States contains over 300 streaming video services that require viewers to pay for a subscription in order to view ad-free content. 80% of households are subscribed to at least one streaming service, whereas the average stream contains four subscriptions.
However, since the global pandemic, user preferences are changing, and many are switching to free-streaming services instead, costing them the time to watch ads that stream through their videos. 47% of American consumers have resorted to free ad-supported streaming and are enjoying what they see.
Customers appreciate they have a wide range of content to choose from, which is available online for free, mostly without the hassle of credit cards and user log-ins. The idea of free yet ad-supported content offering a plethora of content seems like a convenient and reasonable entertainment option to many.
Advertiser Benefits Using Streaming Services
Apart from the fact that advertisers have a better chance of reaching their customers with exceptional view rates and user information. Using streaming services as a primary platform to showcase your brand provides the opportunity for advertisers to reach viewers on a targeted base rather than opting for costly mass-audience coverage. Advertising using high-impact digital ad formats is a great way to create a visual appeal to customers.
Streaming services provide advertisers to target customers based on several variables that include DMA, interests, zip code, keywords, and more. Multiple demographics by brand campaigns allow a better focus on a brand’s audience and effectively build up their customer base.
The ads that show on the free streaming services are limited to a max of three ads per break but cannot be skipped. The limit placed on ads prevents viewers from being frustrated with an overload of popups and messages.
How can Businesses Capitalize on this Opportunity?
The nature of streaming services allows advertisers to receive plenty of exposure. For instance, advertisers can take advantage of running ads on weekly shows or entire seasons that can be streamed every day from anywhere and at any time. Binge-watching enables businesses to gain massive reach and exposure from consumers who view their ads.
Advertisers may even consider targeting specific show genres and niches that they know their specific target audience may be engaged with.