How we consume content is evolving. TV, for example, is not as linear as it once was. Gone are the days of looking at the TV guide to see what time shows are airing. Now, we have the power to watch TV series or movies whenever we want through streaming.

During the onset of COVID-19, there was a shift in consumer adoption of streaming TV. The way we interact with TV content and how often we watch it changed. More consumers are deciding to “cut the cord” with cable and move to TV streaming services. According to Statista, 78% of consumers in the U.S. were using a subscription streaming service in 2021 and this number is expected to continue to increase.

Defining CTV and OTT

When talking about streaming, there are two terms that you need to know: Connected TV (CTV) and Over-The-Top (OTT). These terms will be important for businesses that are looking to integrate streaming ads into their marketing plan to reach their customers.

OTT is known as the film and TV content distributed via the internet rather than through traditional cable or satellite. Examples of OTT services providing video content include Hulu, Netflix, Disney+, and HBO Max. These TV shows and movies are watched through devices connected to the internet.

CTV speaks to the type of device that streams the OTT content. Smart TVs are the main devices however tech like AppleTV and Roku also enables TVs to stream via the internet.

Two additional terms that may be used when talking about TV streaming are Ad-Supported Video-On-Demand (AVOD) and Subscription Video-On-Demand (SVOD). SVOD services have users sign up through a subscription, often allowing them full access to content without ads. While AVOD services give users free access to content knowing that they will be served ads.

Streaming Impacts on Marketing

Understanding the popularity of streaming TV becomes important for marketers because it opens up a new way to reach consumers. Traditionally, companies could reach consumers through commercials on cable TV. Although purchasing a commercial spot meant you could get your message out there, it didn’t necessarily mean that the right people were seeing it. Using traditional TV advertising, companies made ad placement choices based on show content and time of day in hopes to get their commercials in front of their target audience.

The difference and benefit of advertising through streaming services is that ads can be better targeted and personalized to the consumer based on data. First- and third-party data is used to discover insights to reach the business's most valuable audiences on screen. The right ads can be served and personalized based on a diverse range of variables such as demographics and interests. This results in higher engagement as the ads being served are more relevant to the targeted audience.

With streaming ads, the frequency of serving them to target audiences also becomes more precise. There is more control over how often you choose to show your company’s ad so that your audiences have the best experience possible with your messaging. Tracking the results from streamed ads creates unified measurement across digital and traditional metrics, including gross rating points and both online and offline sales.

Benefit from Streaming Ads with Darwill’s Help

Be seen everywhere with Darwill’s CTV and OTT services. Our list of premium partners allows you to run your ads on content from major networks and streaming platforms around the world. Target all types of devices across thousands of providers within our network to reach your optimal customer. Contact us today to learn more!