How Streaming is Transforming the TV Ad Industry

May 7, 2023 Xcite GH

How Streaming is Transforming the TV Ad Industry

Over the years, there have been several changes in the advertising business. In recent years, the change from Web1.0 to Web2.0 meant putting a lot of attention on social media and, later, live and video material. As we move into Web 3.0, advertising is evolving even more, and among the biggest reasons is that streamed TV and video is becoming more and more popular.

There’s no way around it for marketers. The most popular programming is already available through streaming, and traditional TV is on its last legs. Because Web 3.0 will depend on constant and everywhere connection, streamed content will soon be the only kind, and we’re almost there already. So, what does this mean for people who work in advertising? Just one word: chance!

It’s a different way to do things, but there are more chances than ever to reach people in a good way. Streaming advertising is not just different, but it’s also more focused, more artistic, and if done right, can fit in with the material being streamed. Let’s learn more about how streaming material changes how ads are made.

OTT Advertising

(Over-the-top) OTT refers to material sent out over the internet instead of through satellite, cable, or other older ways of streaming. OTT material is sent to all devices connected to the internet, like cell phones, smart TVs, computers, laptops, tablets, and more.

You can watch movies, TV shows, and news on these devices, usually with a streaming device like Roku, Amazon Fire TV, Chromecast, Apple TV, or Google TV. The programs like YouTube, Netflix, Disney+, and many more, are made by content companies.

Different types, forms, and ways direct OTT marketing to these streaming devices. So, OTT ads are the new way to market to people who watch digital streaming, changing the whole advertising business.

VOD Advertising

VOD (video on demand) is how people get streaming content. OTT is how the content is delivered. Because of this, marketers need to know how each VOD version is different.

SVOD: subscription video on demand is a way to get material for a set monthly price. Depending on the SVOD plan they choose from content providers like Netflix, they can watch as much as they want.
TVOD: Transactional video on demand is like the old pay-per-view approach for cable TV. Consumers can rent the material for a certain amount of time or buy it to have access to it forever.
AVOD: Ad-based video on demand is an approach where content is streamed for free in exchange for ads that play before, during, and after content. Streaming marketers are especially interested in this plan because it is a simple and standard way to place ads.
PVOD: Premium video on demand is a more modern approach and a higher-tier payment choice for viewing material that costs more.

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The other three VOD methods, besides AVOD, have their advertising challenges and chances. Advertisers must think outside the box since most subscription-based services don’t have ads. You won’t be able to show your ad before, during, or following a subscriber’s favorite Netflix or Disney+ show. However, there are other choices.

CTV systems like Roku and FireTV have ways for ads to reach customers while they are choosing what to watch. You can also create paid material, a more subtle but expensive way to show off your business or service in a show or at an event. Let’s look at the three OTT choices ads can use to reach people who watch.

OTT Advertising Methods

There are hundreds of different ways to market to people who stream, depending on the type of material, the theme, and the message. However, there are only three ways to place the ads.

Programmatic: In this model, marketers use DSPs (demand-side platforms) to automatically figure out where to put their ads and how much they should cost. It uses AI, so you don’t have to set prices and negotiate, which takes time and is a pain. The ads are placed through ad platforms and usually approved through a lightning-fast buying process. This is a common way for marketers to reach their target audience because it is cheap and works well.

Platform Direct: Here, ads are bought straight from the company that makes the OTT gadget. As was already said, going straight through a site is one way to get advertising around content that doesn’t have ads. Also, Roku, Fire TV, and other platforms offer creative ad placement deals that work well.

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Publisher Direct: This is the oldest way to buy ads because marketers work directly with the content provider. When you advertise directly with a publisher, you have the most say over where your ads will go. It is usually more expensive than the other ways, and only the most well-known names use it. You don’t get as much publicity as the other two choices for your advertising dollar.

Conclusion

Streaming content is there to stay, and as content sources, gadgets, and forms improve to meet the huge demand, it’s becoming increasingly popular. So, marketers can use OTT advertising to reach the most secure crowd on the market and target users better than ever before. Streaming is changing the advertising business, and there are so many ways to be creative and new.