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Oh, Shift! Your Audience’s TV Viewing Habits are Changing. What are Your Advertising Opportunities?

By Heather Kramer

As television viewing audiences dramatically move from broadcast to connected devices, you may find your marketing efforts shifting as well. Broadcast mediums, such as TV, radio, and print, are quickly becoming obsolete as the tempo of online and streaming programming speeds up.

On-demand video streaming services, such as Netflix, Amazon Video, and others, are becoming increasingly affordable, giving consumers an economical, customized viewing experience. It is not hard to understand why advertisers are also flocking to streaming video solutions. Online video offers the same visual experience as broadcast/cable ads, with all of the targeting, tracking, and optimization of digital ad spends. As a result, online video ads are one of the fastest-growing ad mediums, far outpacing growth in spending on television and other digital formats.

Here are some incredible facts about streaming video growth:

  • Online video ad viewing exploded in 2013. Over 35 billion video ads were viewed in the United States in December. (New York Times)
  • Online video ad revenue will reach nearly $5 billion in 2016, up from $2.8 billion in 2013, while TV ad revenue will decline by nearly 3 percent per year during the same time period. (Fortune)
  • Forty percent of homes in the United States have access to streaming services. (Interactive Advertising Bureau)
  • Video advertising on mobile is growing three times faster than video ads on computers. (Business Insider)
  • Digital ads in professional, long-form content have significantly higher recall than the same ads on TV. (Hulu)
  • Video ads have an average click-through rate (CTR) of 1.84 percent, the highest click-through rate of all digital ad formats. (Business Insider)

It is the perfect time for marketers to consider leveraging streaming video for targeted, efficient advertising opportunities. Marketers can connect with online video viewers a few different ways:

Network or publisher site — This would include sites such as YouTube, Facebook, and direct network programming channels such as HBO, Discovery Channel, Huffington Post, etc. Expect to pay a premium retail CPM (cost per thousand) and have limited options for campaign targeting, optimization, and control.

Ad Network — This is a network that represents many websites in selling advertising, allowing advertising buyers to reach broad audiences relatively easily through run-of-category and run-of-network buys. Advertisers can buy across a broad or niche audience or topical category but have limited control over campaigns and optimization.

Online Inventory Resellers — Many broadcast, cable, and print outlets are inventory resellers. Businesses buy online inventory in bulk and mark up cost for profit in the resale transaction to the customer. Inventory can come from direct publishers, ad networks or the Ad Exchange. There is limited control over targeting and optimization.

Online trading desk (DSP – Real Time Bidding Environment) — A demand-side platform is a system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface. This is most efficient for buying, inventory management, data integration, and campaign optimization.

Depending on your type of business and marketing budget, you can effectively weave streaming video advertising into your marketing mix immediately. If you have any questions about streaming/video advertising opportunities or would like to discuss how to purchase digital media, please feel free to reach out.

Heather Kramer is the director of strategy and digital media with Essex Digital Platform. She can be reached at heatherk@essexdigitalplatform.com, @essex_digital, and @mi2cnts4u.

 

 

 

 

 

 

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