Streaming & OTT – Why Media Buyers Should Consider Now More Than Ever to Reach the Cord-Cutting Set
According to eMarketer, more than 46 million U.S. adults who once paid for traditional TV services have “cut the cord” and no longer subscribe to cable, satellite, or similar services.
Streaming services are those that constantly send and present content to end-users. With the cost of cable television, some people prefer streaming. With it quickly garnering positive buzz, it is time for marketers to consider utilizing streaming and OTT (over the top) in their media mix – especially now as more of us are working from home and adjusting to the new normal.
OTT is one example of a streaming service gaining traction in recent years. Additionally, OTT gives the customer the ability to receive constant, accessible video content. By contrast, traditional television requires users to either watch at specified times or record episodes.
There are definite positives to intentional and impromptu viewership.
For starters, streaming typically has a lower CPM (cost per thousand) than over-the-air TV, cable, or satellite services.
Additionally, in a perfect world, there is less waste because the advertiser is paying for targeted impressions delivered and completed views. Broadcast television and cable costs are based on estimated viewership. Nielsen and ComScore are the go-to research companies, but their methodology is imperfect. A small sample size represents a large portion of the population.
Keep in mind, however, that not all impressions are equated equal.
• Not all impressions are delivered to human beings, but rather to bots
• Many ads are not viewable or miss their target audience
• It can be difficult to determine the frequency
• There is also a minimum spend requirement, which can make it difficult for a small business or advertiser with a limited budget
Through video streaming, there are endless ways of reaching target audiences, and companies and brands can now be more deliberate in their approach.
It’s important to keep in mind that some subscriptions services, sometimes known as Subscription Video on Demand (SVOD), such as Netflix and Amazon Prime, don’t even accept advertising.
A second OTT option is to own the content that you purchase – Transactional Video on Demand (TVOD) includes services like Google Play and iTunes.
A third platform is Ad-Supported Video on Demand (AVOD). These are free video services that are offset by ad revenue. AVOD OTT platforms include Fire TV Sticks, Roku, and Pluto.
Audio streaming platforms, whether music or podcasts operate similarly to a video while iHeartRadio, Pandora, and Spotify have free platforms, which allow for advertising. Pandora and Spotify have shifted to a membership-based business model. Additional examples include Apple Music, Deezer, Prime Music, and SoundCloud.
Today, almost any device can be used to reach a viewer or listener. Savvy marketers can reach audiences through all types of screens – televisions, computers, smartphones, Roku, Amazon Fire TV Stick, Apple TV, PlayStation, Xbox, and others. Smart speakers include Alexa, Google Home, and Sonos. Even old iPods can stream video content. The most affordable live TV streaming services include Hulu + Live TV, Sling TV, Philo, and YouTube TV.
With streaming or OTT, advertisers can follow their target wherever he or she goes. As previously indicated, one of the biggest pros is that there is less waste, if you’re smart. A sophisticated media buyer makes sure that an advertiser is only paying for the impressions viewed or listened to completely. A con is that technology can allow for a fraudulently low CPM. Just like the adage, if it seems too good to be true, it probably is. Streaming and OTT partners must provide all access to all. The keyword is transparency.
Flighting branding advertising campaigns is less important in the streaming world because it’s about following your target wherever, whenever, and however they choose to consume content. However, if the message is time-sensitive, flighting is necessary.
Traditional Share of Voice (SOV) is less important as media becomes more fragmented. In years past, SOV on legacy media was measurable based on spend in a category or percentage of spots, ratings, or impressions. Today, SOV measures the level of visibility advertisers own compared to their competitors across all media. In other words, the traditional share of voice tracks what brands say, and the social share of voice tracks what people say about brands. Social SOV measures brand exposure based on social media conversation. It’s usually measured as a percentage of total mentions within an industry or among a defined group of competitors.
The best choices in media partners come down to the quality of product, service, analytics, and relationships. These factors have remained consistent in media buying throughout the years. Still today, not all advertising works. It’s important to consider the return on investment and true measurement of a successful media buy. Now, more than ever, we are occupying our time with streaming services. Have a question regarding how to use streaming for your business? Contact Moxē. We’d be happy to help.