The shift toward streaming has been profound, with 90% of Americans aged 13-54 now streaming their favorite shows. In recent years, Connected TV and streaming were growing. However, the pandemic pushed this trend into overdrive. In the past year, there has been a multi-generational movement. This movement is reinventing how, what, where, and when we watch. Content is now on-demand and limitless to the streaming generation, creating an immense opportunity for businesses — especially those who want to optimize their advertising and marketing strategies.
The Streaming Generation and Connected TV
Connected TV has left analog television in the dark ages, as it allows viewers to watch what they want, whenever they want. Connected TV (CTV) is television that connects to the internet, allowing viewers to stream digital content at their convenience, through apps on Apple TV or a smart TV, as well as through gaming consoles and devices such as Roku.
CTV was gaining popularity for years. However, the recent pandemic caused unprecedented growth. The number of CTV households achieved its 5-year growth projection in just three weeks during the “shelter-in-place” order. Online content streaming increased by 70%, with 60% of viewers adding a streaming service since the beginning of 2020. Also, 91% of the streaming generation would rather give up their social media, music streaming service, favorite food, and favorite brand before they gave up their video streaming service.
Connected TV Has Revolutionized Advertising
Connected TV advertising has been building over the past few years. However, there was a clear tipping point in 2020 — and this trend is unlikely to reverse. Research shows that 15% of consumers canceled their cable subscriptions. During this time, advertisers could reach over 84 million households via connected TV. In 2021, an additional 27% of consumers plan to ditch cable services in favor of connected TV services.
Business owners, advertisers, and marketing teams have recognized these trends, shifting their budgets. Those who are not risk being left behind. After all, 43% of marketers identified CTV as the number one channel for brand storytelling and overall brand awareness, followed by social media (29%) and traditional, linear TV (26%).
Those who see the potential and have already experienced a significant ROI are adapting, becoming more and more creative. Since the viewing experience on CTV differs from traditional TV, ads are now shorter and more flexible. This is creating a trickle-down effect, as companies bring on new talent and training programs to become more fluent in CTV.
These are the facts:
- Consumers are moving away from cable services because 50% think it’s too expensive, with 48% not getting enough value for their money. Nearly 38% say they are attracted to streaming services because they offer a better viewing experience.
- Currently, less than half (49%) of TV viewers still subscribe to cable services— and 27% of these viewers plan to cancel their cable subscription this year.
- It is not just millennials who are canceling cable services The data shows that 20% of those 55 and older plan to cancel their cable services in 2021, up from 8% at the end of 2020.
- Perhaps one of the most significant findings is that 79% of people who have now stopped paying for cable are unlikely to subscribe again. This is incredibly telling, as this shift means that marketers will need to rethink how they engage with both their current and prospective customers.
Advertising on Connected TV and OTT
CTV/OTT advertising uses targeting capabilities that allow advertisers, like yourself, to show different ads to viewers who are watching the same show. This helps you save money and maximize your budget because your ads are shown to an intended audience. This is just one reason why CTV offers a potentially superior investment compared to traditional TV ads.
Some benefits of incorporating Connected TV/OTT advertising into your business plan include:
- More effective targeting— Combining the experience of TV with digital advertising technology, you can build custom audiences based on demographics and behavioral attributes. This allows you to customize your message, created targeted ad campaigns that increase conversion rates.
- Greater flexibility — See what works and what doesn’t, without committing to a “block of time” like you would with traditional TV advertising.
- More accurate analytics— With CTV, you can measure ad performance, tracking a wide range of metrics, including website visits.
- No need to worry about third-party cookies— The death of third-party cookies has many marketers concerned, but luckily, CTV is a channel that will remain unaffected.
Recommended reading: How to Develop Creative Advertising That Motivates Customers to Try and Buy
Top Criteria for TV Ad Buyers in 2021
Considering 95% of marketers reported CTV achieved their desired key performance indicators, it’s time to consider the value of Connected TV advertising.
If you’re wondering where others stand on this movement, here are the areas that matter most to TV ad buyers in 2021:
- 30% want the flexibility to cancel without penalty
- 30% want the ability to connect their investments to measurable business outcomes
- 22% want to change campaigns quickly in-flight
- 18% want the ability to stop/start quickly
How DX Media Direct Can Help
Not sure how to implement new OTT and CTV strategies into your current marketing strategy, but want to act fast?
Looking for cost-effective ways to put your brand on sites like Hulu, Apple TV, Discovery +, and YouTube TV?
DX Media Direct is a full-service direct response advertising agency that can help you achieve a measurable return on your advertising investment. We have over 25 years of experience helping brands of all sizes succeed.
Four key components will help drive the success of your CTV campaign:
- Data science
- An experienced CTV/OTT media buying team
- Volume discounts
At DX Media, we can help with all the above. We are experts in this space, offering support for radio and TV advertising, streaming services, as well as social media. We are big enough to offer discounted media, yet still small enough to give you the one-on-one attention you deserve. That is why we hold several awards, including Ad World Masters Agency of the Year and Clutch’s Top Advertising and Marketing Agencies in Texas award. We have buying power, allowing us to get lower platform fees, which we then pass onto you! Our experience will also ensure that you pinpoint the most valuable audience, resulting in the lowest cost per lead!
Although we will help you optimize your CTV and OTT strategy, the customer journey is not linear. That is why we offer support every step of the way, allowing you to maximize results and improve your bottom line. Check out our full range of services. When you partner with us, we’ll help you develop the best plan of action for your business.
Ready to get started? Contact us for a free digital consultation today!