Gone are the days of network television's dominance over the airwaves. While cable's mass adoption spelled the beginning of the end, streaming services arguably put the proverbial nail in the coffin. It's not that major network programming will disappear any time soon. But today's consumer is far more likely to consume broadcast media on a subscription streaming service than on broadcast TV.
Before the pandemic, nearly three-quarters of Americans owned at least one subscription streaming service, a percentage that grew during the pandemic. In 2022, almost 60 percent of Americans subscribe to three or more services. The amount of content watched is growing as well. The exponential growth in streaming represents a tremendous opportunity for marketers willing to cut the cord and move ad dollars to these services.
Most Households Use Streaming
At the onset of the pandemic, nearly 70 million homes used streaming services, a 5 percent increase over the previous year. That number continues to grow and is estimated today at more than 97 million. While marketers may question which platforms represent the best opportunity, there is no question streaming ads significantly impact business growth.
Many consumers want to save on subscription services. With many unwilling to drop their cable subscription, its price, coupled with three or more services, is expensive. Many streaming services responded by offering discounted subscription packages with limited commercials. As consumers cut back in an era of rising inflation, advertising on these platforms can help get a business in front of audiences.
With these platforms' limits on the number of commercials they air, the one or two ads they showcase at a time are more prominent as a result. This prominence can help brands and businesses secure top-of-mind awareness among consumers.
Streaming Advertising Tips
When evaluating your advertising options, remember that streaming services don't allow viewers to skip over the ads they display. You'll have a captive audience for your message, reinforcing your brand and helping your calls to action resonate more strongly. These ads, also known as over-the-top (OTT) or streaming ads, are short and designed to maximize impact.
If you're looking to get into this space, your creative should be 15, 30, or 60 seconds to match the available slots. They are effective for direct marketing purposes. With repetition, these ads can be effective at building brand awareness. Make sure you're clear on how these ads can most help you satisfy your marketing objectives before designing your creative.
Getting Started with Streaming Ads
There's more to creating impactful streaming ads and using this channel to grow your business. But one thing is for sure, with 85 percent of American households owning at least one subscription service, the marketing opportunities are too rich to pass up. Check out this blog from our in-house digital agency, Federated Digital Solutions, to learn more about how OTT and streaming ads can grow your business.