TV Adverts in the Streaming Era: Reaching Cord-Cutters and Gen Z Audiences
The rapid growth of the entertainment streaming industry has brought about significant changes in the way audiences consume television content. Traditional cable TV has been challenged by the emergence of streaming services. Meanwhile, companies like Netflix, Amazon Prime Video, Disney+, HBO Max, and Hulu, are leading to a content creation war that demands substantial investment.
As streaming companies continue to spend billions on creating content, many are turning to advertising as a means to offset costs. In this blog post, we’ll delve into the evolving landscape of “adverts in the streaming era” and explore how streaming platforms are reaching cord-cutters and Gen Z audiences through innovative ad models.
Embracing Advertising in the Streaming Era
With streaming services investing heavily in content creation, advertising has become a crucial revenue stream. Therefore, offering an ad-supported tier alongside ad-free options can attract more subscribers, making it an attractive approach for streaming companies. In fact, according to a new PwC report, this 2023 Britons are spending more on streaming services than on traditional paid TV packages. And in 2025, it is thought that Britons’ subscription video-on-demand (SVoD) will be around £4.2bn.
Meanwhile, streaming companies are at the forefront of the Over-The-Top (OTT) television revolution, where TV content is viewed over the internet. As OTT viewing experiences explosive growth, these streaming ad models are shaping how people engage with entertainment content online.
Taking a Closer Look at Advertising on Streaming
Hulu, an early adopter of ad-supported tiers, has influenced the ad strategies of other platforms like Disney+ and Netflix.
- Hulu’s approach is not limited to the traditional 15- and 30-second ads found on linear TV. Instead, they offer multiple ad formats, such as Binge ads and Sponsored Collection brand placements, tailored to enhance the viewer’s experience without being disruptive.
- Netflix’s shift into ad-supported platforms signals the changing landscape, with CEO Reed Hastings acknowledging Hulu as a successful model for advertising.
- Disney+ is also making strides in the ad-supported arena, proving that ads can coexist alongside high subscriber growth.
The Rise of Organic Advertising Formats
While major streaming companies make headlines, the “old” YouTube, first introduced ad formats. Including Masthead, where brands can showcase their products or services in native video-based ads on users’ home feeds.
Another intriguing format, Virtual Product Placements (VPP), places branded products within streaming content. This resembles to organic product placements in movies and traditional TV shows. Amazon Prime Video and Peacock have followed suit with their VPP tools, offering advertisers more organic and non-disruptive ways to reach their audiences.
Lessons Learned for Brands in the Streaming Era
As advertising penetrates the streaming landscape, brands outside the industry can learn valuable lessons:
- Choice matters: Offer different subscription tiers to cater to diverse audiences and respect viewers’ privacy with opt-in measures.
- Flexibility drives content: Embrace a variety of paid and organic content options, such as Snapchat lenses and LinkedIn Carousel Ads.
- Emotional touch: Successful ads still relies on telling great stories that resonate with viewers, capturing their hearts and minds.
Magnite’s research study sheds light on the growing dominance of streaming TV in the UE5: UK, France, Germany, Spain, and Italy. The majority of viewers favour ad-supported options and those not negatively impacting engagement. That is why ad-supported streaming TV proves to be a viable option for both consumers and advertisers.
The study also reveals that exposure to brands across multiple devices drives higher purchasing intent, making streaming TV an attractive platform for advertisers.
Insights from TV Executives: Adapting to the Connected Age
A roundtable discussion among TV executives offers insights into how the industry is adapting to the rise of streaming services and the shift away from traditional broadcast TV.
To thrive in the connected age, the industry must accommodate the growing inventory while expanding the advertiser base. Additionally, advertisers need to focus on creating emotionally resonant ad content that captures the hearts and minds of viewers. Data-driven strategies play a crucial role in understanding audience behaviour and preferences. Thus, this allows advertisers to deliver personalised and engaging ad experiences.
The streaming era continues to shape the TV advertising landscape. This is why collaboration among stakeholders, including media companies, agencies, and brands, is essential to navigate the evolving ecosystem successfully. By embracing innovation, data insights, and storytelling, advertisers can seize the opportunities arisen.
In the midst of the streaming era revolutionising TV content consumption, the role of advertising has grown pivotal within the revenue models of streaming platforms. Embracing ad-supported tiers, diverse ad formats, and even organic placements, brands are presented with novel avenues to engage cord-cutters and captivate Gen Z audiences.
This shift is monumental, streaming TV, once a niche, has now ascended to become the dominant TV form throughout the region. As a result, advertisers find themselves on the cusp of a promising realm, strategically positioned to connect with their target audience in this evolving landscape. To effectively harness this landscape, advertisers must navigate the contours of the “TV Adverts in the Streaming Era” and master the art of crafting impactful and resonant campaigns that leave a lasting impression.
We are in a fast-evolving landscape of streaming TV and digital advertising. So staying ahead of the curve is crucial for businesses looking to make an impact. At Impress Video, we understand the challenges and opportunities presented by the rise of streaming services and the shift away from traditional broadcast TV. Our team of skilled professionals is here to help you create visually captivating and emotionally resonant ad content that leaves a lasting impression on viewers.
Contact Impress Video now
If you would like to do a TV Advert with video production and marketing professionals, or any other type of video, we can help you at Impress Video. We make video production for businesses, the ones that impress. Don’t hesitate to contact us here!