Has Streaming Changed the Effectiveness of TV Advertising?


Some people claim that television is dead or dying, but this is untrue – television is merely going through a phase of evolution. Similar to how broadcast TV gave way to cable, streaming is now replacing the iterations of TV before it. Streaming is all the rage right now and marketers are loving it. 

There is now a multitude of streaming services available to consumers, from Netflix and Disney Plus, to Amazon Prime Video – the choice is unlimited. But how has the success of streaming affected TV advertising? We’re going to break that down for you in this very article. 

What is TV advertising?

For many years now, televisions have been a mainstay in the average household. They are used by people as a source of news, entertainment, and even education. 

But television is also frequently used for advertising. These advertisements can take a variety of forms, but they all aim to convince viewers to purchase the product being advertised. 

Television has always been a significant part of any marketing plan. Television ads have been used for a long time by advertisers to promote their goods and services to customers. TV advertising experiences can be enhanced using a solution like Finecast, helping to ensure that your ads are seen by the right people at the right time, and thus increase your ROI.

The rise of streaming

In the 2010s, over-the-top (OTT) platforms were officially launched, establishing the video streaming craze as a standard feature of television. A generation of viewers who first chose streaming and SVOD over cable plans for their new homes, as a result of OTT streaming, have certainly not changed their minds. 

Despite the fact that most of the world’s population was forced to isolate at home in 2020, estimates claim that 5 million homes had cut the cord and stopped watching cable television by that time in the US alone.

How does streaming advertising work?

A wide range of streaming services, including Paramount+ and Netflix, as well as a number of devices, including connected TVs, feature OTT advertising. Over-the-top video content can be viewed on any device or platform that streams video over the internet. As a result, streaming TV advertising is open to a huge market, and a plethora of endless opportunities to reach out to a huge and diverse market, that can be tailored to meet your specific target audience.

While streaming TV allows advertisers to target based on a wide range of data-driven characteristics like demographics and interests, traditional TV advertising targets based on archaic elements like ratings and the time of day. As a result, advertisers on streaming TV see higher rates of engagement, since their advertisements are being served to audiences who are more likely to be interested in them.

Streaming advertising for marketers

Cable and satellite television replaced broadcast television, and now streaming TV is taking over and ushering in a new era of TV consumption. In terms of targeting efficiency and metrics, as well as altering television advertising to make it more accessible to a broader variety of organisations, this represents a big improvement for advertisers.

You can increase engagement, reach more of your target audiences and create better ad experiences for consumers by advertising through streaming television.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.