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How to Advertise on Streaming Services
In today’s digital age, streaming services have become the go-to option for entertainment. Millions of users stream engaging content daily and these platforms offer a goldmine of opportunities for advertisers. Streaming services were originally used as an escape from advertisements, but nowadays, advertisements on streaming services have become the standard.
Streaming TV advertising campaigns have emerged as a game-changer for advertisers. Unlike traditional TV ads, advertising on streaming services reaches viewers where they are the most engaged. This targeted approach enables advertisers to connect with their ideal audience in a more personalized manner.
Wondering how to advertise on streaming services? In this blog post, we give you a quick rundown of what you need to know about streaming advertising.
Over the Top Content (OTT) and Connected TV (CTV)
OTT and Connected TV (CTV) are often used interchangeably, but they are notably different. OTT or Over The Top refers to all the video content delivered over the internet, while CTV refers to the specific devices that connect to the internet like smart TVs and Roku sticks. OTT advertising offers several advantages that make it an attractive option for businesses.
Unlike traditional television, OTT platforms allow for highly targeted and personalized ad placement based on detailed viewer data. This enables businesses to serve ads directly to their ideal customers across a wide range of connected devices. The precision targeting, engaged viewership, and flexibility of OTT advertising make it an extremely appealing avenue for modern brands looking to maximize their ad spend.
What is OTT Advertising?
OTT advertising, otherwise known as streaming TV advertising, is when advertisements are delivered to users within a streaming platform. It allows businesses to reach their target audience without the constraints of traditional cable or satellite television.
The Landscape of Streaming TV Advertising
Television advertising has long been one of the most recognizable and impactful forms of marketing. While buying TV spots can be prohibitively expensive for many small businesses due to limited ad inventory and high costs, the unparalleled reach of cable and broadcast TV makes it an extremely desirable avenue for brands looking to build awareness rapidly.
However, as viewing habits shift and new technologies emerge, marketers today have more options than ever before to engage audiences on the screens and platforms they prefer, at costs that make sense for a wider range of budgets. Streaming television presents new opportunities for marketers to engage audiences where they are increasingly spending their viewing time.
Buying Advertising on Streaming Services
The advertising landscapes on streaming platforms are varied and evolving. While some popular streaming services like Netflix are not as accessible to most advertisers, other major players provide major opportunities for marketers. Here are a few examples of popular subscription-based streaming services that advertisers can directly buy from.
Reveel
Reveel is an emerging free streaming platform that focuses on showcasing original movies from talented filmmakers. The viewers span generations, interests, and backgrounds—but share a mindset open to exploring new content. On Reveel, users actively seek out the unknown. This makes the Reveel platform a rare opportunity for brands.
Reveel’s audiences are primed to embrace different products and services that enhance their viewing experience. Through strategic partnerships, Reveel enables brands to organically weave into the very fabric of their community.
Hulu
Hulu is a popular streaming service that allows users to watch TV shows and movies live or on-demand. The service offers an ad-supported subscription plan that gives users access to Hulu’s full content library. This lower-priced tier has proven popular with viewers – as of 2019, approximately 70% of Hulu’s subscriber base had opted for the ad-supported version over the pricier commercial-free option.
Hulu has a self-service advertising platform, commonly known as Hulu’s Ad Manager. The self-service manager provides advertisers and agencies with 24/7 access to a dashboard for buying Hulu ad inventory. It opened the doors for smaller businesses to get into streaming TV advertising on Hulu for a minimum of $500 per campaign.
Netflix
Netflix is the leading streaming service that was known for not having ads. In November 2022, Netflix launched its first ad-supported subscription tier. Unlike Hulu, Netflix advertising is not accessible to most businesses. The cost of advertising on Netflix is around $50 CPM which is extremely high compared to the typical $20 to $30 CPM on other platforms. Similar to linear television, Netflix has either :15 or :30 ads that will be pre-roll or integrated into the program. The ad-supported subscription tier has 5 million monthly active users out of 232.5 million subscribers worldwide.
Peacock
Peacock, the streaming service from NBCUniversal, offers marketers a unique opportunity to advertise on its platform. The streaming service has a single marketplace that advertisers can use to buy online video ads across NBCUniversal’s entire network of streaming and traditional TV services. The cost for Peacock advertising is reportedly $40 CPM.
Roku Advertising
Roku is a place for marketers to engage cord-cutting audiences. Roku first gained popularity through its streaming devices and has since partnered with TV manufacturers to install its operating system into smart TVs. According to Business Insider, average CPMs on Roku range from $19-$21, competitive with other digital video platforms. Roku offers resources on Roku Advertising to educate brands on its capabilities and best practices.
Amazon Freevee
Amazon Freevee (formerly IMDb TV) provides a free, ad-supported streaming television (FAST) experience for viewers. For advertisers, buying inventory on Amazon Freevee happens through Amazon Advertising’s DSP (demand-side platform). Marketers can use the service based on their needs and budget size. The self-service option on the website recommends a minimum spend of $10,000 to access Amazon’s DSP while the managed service option requires a minimum of $50,000.
Sling
Sling TV, owned by Dish Media, was one of the first live TV streamers to offer programmatic ad buying. Advertisers can purchase video ad inventory on Sling TV through the same platform used for Dish Network, Sling’s parent company. This enables brands to work directly with Dish/Sling representatives or go through an authorized advertising partner.
A New Era of Advertising
The rise of streaming has opened new and exciting opportunities for marketers to engage audiences. No longer simply an ad-free escape, streaming presents new possibilities for marketers ready to embrace the platforms where audiences are migrating. Cord-cutting is on the rise and streaming advertising provides a way for brands to stay visible and top of mind for target audiences as their media habits change. With the right strategies and partnerships, businesses of all sizes can unlock streaming TV’s potential to drive meaningful results.