The Future of TV Advertising Is Streaming

As streaming TV (STV) continues to outpace traditional television, brands are rethinking their advertising strategies to stay competitive. By shifting ad spend to streaming platforms, marketers can unlock enhanced targeting, greater efficiency, and more measurable outcomes, reaching the right audience at the right time.

Understanding the STV Landscape

Unlike traditional TV and digital video ads, STV advertising offers programmatic ad buying, audience-based targeting, and real-time optimizations. This shift is driven by declining linear TV viewership and the growing demand for more personalized and data-driven advertising experiences.

Leading STV Platforms and Their Advertising Opportunities

As audiences shift toward streaming, major platforms have evolved their ad offerings to deliver improved targeting, broader reach, and creative flexibility. Here’s a look at the top STV platforms and the advertising opportunities they offer:

• Netflix: With the launch of its ad-supported tier, Netflix now offers extensive reach, advanced targeting options, and various ad formats, including pre-roll and mid-roll placements, on premium, high-engagement content.
• Hulu: Known for its hybrid model of live TV and on-demand content, it supports programmatic ad buying and features innovative ad units like interactive and pause ads that boost engagement.
• Disney+: The introduction of ad-supported tiers, alongside integration with the broader Disney ecosystem (including ESPN, Hulu, and ABC), enables powerful cross-platform campaigns with access to live sports, events, and family-friendly content.
• Amazon Prime Video: Amazon leverages its vast first-party shopper data to offer hyper-targeting. With an estimated 175 million monthly viewers, it’s ideal for performance-driven advertisers.
• Peacock: This platform offers a blend of live and on-demand content and unique sponsorship opportunities, making it flexible for both awareness and engagement campaigns.
• Paramount+: Competitive CPMs and strong sports programming make this platform a cost-effective way to reach diverse demographics with live and on-demand inventory.
• YouTube CTV: YouTube CTV enables advertisers to leverage Google’s robust audience data with the scale of traditional TV environments.

The Benefits of Advertising on STV

Streaming TV offers advertisers a modernized, data-driven environment, combining the storytelling power of television with the performance capabilities of digital.

• Advanced Audience Targeting: STV platforms leverage first-party data and programmatic ad buying to enable highly refined audience segmentation. This results in more relevant messaging and seamless cross-device reach across households.
• Cost-Effective CPMs: Compared to traditional TV, STV offers more competitive CPMs, allowing brands to stretch their media budgets further while delivering measurable impact. With audience targeting, advertisers minimize wasted impressions and focus their spend on high-value audiences.
• Improved Ad Engagement and Measurement: Streaming viewers tend to be more engaged, leading to higher ad completion rates. STV also supports real-time tracking, in-depth attribution, and campaign analytics, providing marketers with the insights needed for continual optimizations.

How Brands Can Leverage STV Advertising

To unlock the full value of STV, brands need a strategic approach that aligns platform capabilities with audience needs and creative execution.

• Choosing the Right Platform for Your Brand: When selecting a platform, consider your target demographics, preferred content type (e.g., live sports and family content), and available ad formats. Each streaming service has unique strengths; align these with your campaign goals for maximum impact.
• Best Practices for STV Ad Creative: Design creative specifically for streaming environments. Keep messaging concise and compelling, and consider interactive formats when available. Personalization and relevance are key in capturing attention.
• Measuring Success in STV Advertising: Track key metrics such as ad completion rate, viewer engagement, and conversions. Integrate STV performance into your broader marketing attribution models to evaluate its role across the customer journey.

The Future of TV Advertising Is Streaming

As consumer behavior continues to shift toward digital-first viewing, streaming TV has become a cornerstone of modern media strategies. With advanced targeting, improved cost efficiency, and robust measurement capabilities, STV advertising offers brands the ability to connect with high-intent audiences more impactfully than traditional television ever could. To remain competitive in this evolving landscape, brands must adapt by embracing the opportunities that streaming platforms provide. Ready to explore how STV advertising can elevate your brand’s reach and performance? Let’s talk.